Target ramps up store remodel strategy with $5 billion investment

MINNEAPOLIS — Target is accelerating its store transformation strategy in 2026, committing approximately $5 billion to more than 130 remodels, 30 new stores, and broader investments in technology and supply chain infrastructure as the retailer looks to strengthen the role stores play in shopping and fulfillment.

The company said the initiative marks its most significant store transformation in more than a decade, featuring redesigned layouts, expanded assortments and upgraded fulfillment capabilities to improve convenience and engagement for shoppers.

Target plans to focus many of the remodels and new locations on priority growth markets, including Atlanta; Austin, Dallas, and Houston, Texas; Charlotte, N.C.; Chicago; Phoenix; Los Angeles; Miami; Minneapolis; New York City; Philadelphia; and Washington, D.C.

“These investments are all about making Target an even easier, more inspiring and friendly place to shop,” said Laurie Mahowald, senior vice president of Target Properties. “We’re evolving our stores in ways that reflect how guests shop today — from more intuitive layouts to expanded assortments — while also strengthening the role our stores play in fulfillment and our long-term growth.”

The remodels are designed to deliver a more seamless shopping experience while supporting Target’s growing same-day services business. Planned updates include expanded grocery and essentials assortments, refreshed décor and lighting, upgraded beauty, home and apparel presentations, and enhanced pickup, Drive Up and returns areas.

The company is also modernizing checkout areas, adding nursing spaces, and updating restrooms. In select stores, Target is introducing energy-efficient refrigeration, lighting, and HVAC systems to reduce emissions and lower operating costs.

Target said the investments align with broader merchandising efforts across categories, including health and wellness, beauty, baby, home and women’s apparel.

With 76% of U.S. households within 10 miles of a Target store, the retailer continues to position its physical footprint as a competitive advantage that supports both discovery and fulfillment. The company noted that remodeled stores typically deliver a low- to mid-single-digit sales lift, along with higher traffic and guest engagement.

“Our stores are not just places to shop,” the company said. “They are critical infrastructure that powers speed, scale and long-term growth across the business.”