Target fights back with price cuts and a $5B revival plan to challenge Walmart
Target is struggling to keep its once-loyal shoppers as higher prices and store problems erode its reputation. The retailer, known for its 'Tar-zhay' charm, has seen sales drop while rival Walmart gains ground. Now, major changes are underway to turn things around.
Target’s troubles became clear as sales fell by 2.7% last quarter, while Walmart’s grew by 4.5%. Shoppers, increasingly focused on value, have shifted toward Walmart’s everyday low prices. The discount giant’s strategy—combining affordability with improved store quality—has drawn not just budget-conscious buyers but also wealthier customers looking to save.
In response, Target announced a 25% increase in capital spending next year, bringing it to $5 billion. The funds will go toward upgrading stores, refreshing merchandise, and boosting digital services. For the holiday season, the retailer is also cutting prices on 3,000 everyday items and groceries.
Leadership changes are part of the plan too. Current COO Michael Fiddelke will take over as CEO in February 2026. He has already admitted the company’s recent struggles and pledged to drive growth. As part of the restructuring, Target will eliminate 1,800 corporate jobs to streamline operations.
The moves signal a push to reclaim Target’s lost appeal and compete with Walmart’s dominance. With lower prices, store upgrades, and a new CEO at the helm, the retailer aims to win back shoppers. Whether these changes will restore its former reputation remains to be seen.
