Target Plans 30 New Oversized Stores in 2026 After 3.8% Sales Drop
Target reported a 3.8% drop in comparable sales and an 18.9% decline in operating income in its most recent quarter, with store traffic down 2.7%. Management plans to open over 30 new stores sized above the typical 125,000 sq ft in 2026 and expand by 300 locations by 2035.
1. Recent Financial Performance
Target’s comparable sales fell 3.8% in the most recent quarter as operating income declined 18.9% and store traffic dropped 2.7%, reflecting heightened competition and operational challenges.
2. Aggressive Store Growth Strategy
The company will open seven new stores this spring, including five locations above 125,000 sq ft, and aims to launch over 30 stores in 2026 with a long-term goal of 300 additional sites by 2035.
3. Advantages of Larger Footprint
Expanded square footage offers room for broader product assortments, improved store layouts to reduce clutter, and enhanced in-store pickup efficiency targeting customer experience improvements.
4. Operational and Customer Challenges
Recent customer feedback highlights disorganized shelves, cluttered aisles, and prolonged order pickup times, prompting leadership to prioritize store team staffing and cleanliness standards as part of the expansion plan.