I used to love walking into Target and roaming the aisles for interesting finds. Back then, my local Target store was filled with neatly stocked shelves and inventory that was easy to navigate.
These days, shopping at Target is more of a chore than anything else. In fact, the only reason I’ll set foot in Target now is to buy clothing for my kids or pick up an item I know I can’t find elsewhere. The days of browsing Target’s inventory for fun are long gone.
And this isn’t just my experience. A lot of people who used to adore Target are now, in a word, haters.
Over the past year or so, Target has been losing customers for a variety of reasons, from lackluster inventory to disorganization to general economic stress. The company’s DEI rollback certainly didn’t help.
As Peggy Stover, a marketing professor at the University of Iowa, told Business Insider, Target “attracted a very different type of demographic — more educated, younger, more self-aware, and aware of the issues that are taking place within their community.” So when the company rolled back its DEI initiatives, consumers didn’t take the news lightly.
Plus, consumers across the board are struggling right now and tightening their belts.
Inflation was up 2.7% on an annual basis in December, according to the Consumer Price Index. And 49% of Americans believe that their financial situation worsened in 2025, per a recent Credit Karma survey.
At a time when money is tight, it takes a lot to win over consumers. And Target has been sorely lacking in that regard.
Investors in Target stock have lots to be worried about. During the third quarter of 2025, Target reported net sales of $25.3 billion, down 1.5% from the year before, with comparable store sales down 3.8%.
Operating income was also 18.9% lower than the year prior.
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“Target has been facing increased competition from mega-retailers and has undergone a leadership transition. This has put pressure on the company’s stock,” Yahoo Finance reported in November.
But the reality is that if Target doesn’t get its act together, it’s going to lose more customers.
Target may not be able to control economic conditions and broad inflation. But it can certainly try to be strategic at a time when foot traffic is down.
Data from Placer.ai showed that foot traffic in Target’s stores decreased by 2.7% in the third quarter of 2025, compared to one year earlier.
Current CEO Michael Fiddelke pledged to do better following the company’s disappointing earnings.
“We continue to focus on the important work to deliver on our three key priorities: solidifying our merchandising authority, elevating the shopping experience, and further harnessing the power of technology to move at greater pace and consistency, all in support of a return to sustainable growth,” he said in a press release.
Earlier this year, Target revealed plans to open seven new stores, five of which are expected to be larger than the chain’s 125,000-square-foot average.
But new store openings don’t just offer more in-person shopping opportunities. For Target, they also offer an opportunity to improve on one key factor — delivery speed.
“Our stores fulfill 95% of our digital orders, including same-day delivery service with Target Circle 360, which currently reaches 80% of the U.S. population,” Target said in its announcement.
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This strategy allows Target to use real-time signals, like inventory levels and staffing, to decide where incoming online orders should be fulfilled from, optimizing for both cost and speed.
And at a time when many customers aren’t too keen on the in-person shopping experience, improving the digital experience could be key to getting back into shoppers’ good graces.
Target isn’t the only company that’s able to tap its store network for faster order fulfillment times.
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Walmart says over half of its online orders are fulfilled directly from local stores, according to Creatuity.
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Amazon is converting some Whole Foods Market locations into automated micro-fulfillment centers, Retail Technology Innovation Hub reported.
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Dick’s Sporting goods fulfills 80% of online order from store shelves, RetailBrew noted.
However, if it takes steps to reconcile its politics, organize its stores, and get orders out the door quickly, Target is in a unique position where it may be able to capitalize on consumer nostalgia and regain shoppers’ trust.
The company may be floundering on the first two. But if it continues to succeed with the latter, it could open the door to higher sales and much better numbers in 2026.
Maurie Backman owns shares of Target.
Related: Target sees shift in consumer behavior
This story was originally published by TheStreet on Jan 31, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.
