Inside Target: An omnichannel retailer focusing on merchandising authority and AI-driven efficiency

Target is a multi-category omnichannel retailer serving families through nearly 2,000 physical stores and digital platforms. Revenue flows primarily from merchandise sales across apparel, home, and essentials, supplemented by higher-margin digital businesses like the Target Plus third-party marketplace and its Roundel retail media network. Leadership is currently prioritizing a return to sustainable top-line growth by reclaiming their design-led merchandising authority, elevating the guest shopping experience, and integrating AI technology to improve speed and efficiency.

A key initiative is "FUN 101," which injects culturally relevant, trend-forward style into hardlines categories to drive engagement. Operationally, Target is optimizing its unique "stores-as-hubs" model by reconfiguring specific locations to act as dedicated digital fulfillment centers for faster same-day and next-day deliveries. Additionally, the newly formed Enterprise Acceleration Office is deploying Gen AI tools like Target Trend Brain to predict consumer preferences and streamline headquarters processes.

You'll learn how the company is navigating significant challenges, including persistent sales softness in discretionary categories like home and apparel, alongside complex margin pressures from global tariffs. Incoming CEO Michael Fiddelke and Chief Commercial Officer Rick Gomez outline growth opportunities by leaning into exclusive brand collaborations, enhanced in-stock reliability, and a step-up in capital investments for store remodels.

All sourced directly from Target's own leadership at their 2025 earnings calls.