Target’s New CEO Announced a $5 Billion Plan to Win Back Customers—and Bring Back the ‘Tarzhay’ Magic

CEO Michael Fiddelke says trendier brands, revamped stores, and an investment plan will help restore the retailer’s signature shopping experience.

BY LEILA SHERIDAN, NEWS WRITER

After years of stagnant sales and falling stock prices, Target’s new CEO is trying to revive the retailer by returning to what once made it distinctive: buzzy brands and a shopping experience built around discovery.

Michael Fiddelke, who took over as CEO just a month ago, told investors Tuesday that Target will expand its product assortment, refresh stores, and increase spending in an effort to win back customers and “get Target back to growth,” according to CNN.

The strategy centers on doubling down on the identity that once helped the retailer earn the nickname “Tarzhay.” Unlike competitors such as Walmart, which emphasizes low prices, or Amazon, which dominates convenience, Target has historically positioned itself as a destination for affordable yet stylish goods, from clothing and home décor to beauty products.

“Target is not an everything store,” Fiddelke said, according to CNN. Instead, the company plans to focus on appealing to “busy families,” a core customer segment it hopes to bring back into stores.

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To support the turnaround, Target plans to boost capital spending by 25 percent this year to about $5 billion, according to CNN. The investments will go toward improving operations, upgrading technology, and expanding merchandise in key categories such as food, beauty, apparel, and home furnishings.

The retailer is also leaning more heavily on partnerships with niche and trend-driven brands. In beauty, for example, Target will begin carrying the popular sunscreen brand Supergoop for the first time. The company also plans to expand its selection of sports equipment and games for kids.

But merchandise alone may not be enough to fix deeper operational problems.

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