Target Allocates $2bn for Operating and Capital Investments to Open 30+ Stores
Target plans to deploy $1bn in operating investments and over $1bn in capital spending, bringing total 2026 capex to $5bn for store floor plan updates, enhanced displays, payroll, marketing and AI technology. The funds back 30-plus new store openings and over 130 remodels, including its 2,000th location.
1. Additional Operating and Capital Investments
Target will allocate an extra $1bn in operating investments this year to update store floor plans, enhance displays, expand payroll, boost brand marketing and integrate AI technology. The retailer is also adding more than $1bn in capital spending for 2026, bringing total planned capex to around $5bn.
2. Store Expansion and Remodeling Targets
These investments will support the opening of over 30 new stores in 2026 on the path to a 300-location network by 2035, alongside more than 130 full-store remodels. Later this month, Target will celebrate its 2,000th store opening in Fuquay-Varina, North Carolina.
3. Four Strategic Priorities
The growth plan is guided by four priorities: establishing merchandising leadership with unique, trend-forward assortments; improving guest experience through digital tools and in-store offerings; advancing technology for operational efficiency; and supporting employees and local communities.
4. Digital Enhancements and Fulfillment Improvements
Target will leverage internal design resources and trend-tracking tech to accelerate new women’s styles, focusing on denim, basics and seasonal collaborations. The retailer also plans to strengthen digital platforms and AI capabilities to boost speed and efficiency of same-day fulfillment, which accounts for two-thirds of digital sales.