The news: With new CEO Michael Fiddelke at the helm, Target is moving to regain momentum by expanding its physical footprint. The retailer plans to open 30 new stores this year, including seven this spring, as part of a long-term strategy to add more than 300 locations by 2035, which would grow its brick-and-mortar base by roughly 15%. Notably, Target is leaning into larger formats, with five of the stores opening this spring exceeding the chain’s 125,000-square-foot average.
Why it matters: Stores remain central to Target’s strategy because they fulfill about 95% of digital orders, including same-day delivery through Target Circle 360. That’s why Target sees its store base expansion both as a means of offering convenience and bolstering its omnichannel experience with faster delivery.
The emphasis on stores was reinforced in a memo Fiddelke shared on his first day as CEO, outlining four priorities for the retailer’s next chapter:
- Lead with merchandising authority by curating design, style, and value.
- Elevate the guest experience, making every store visit and digital interaction easier, more inspiring, and more welcoming.
- Accelerate technology to reduce friction, empower teams, and deliver more personalized experiences.
- Strengthen teams and communities by investing in employees.