Bloomberg Intelligence Target Surprises With Upbeat Forecast on Improving Demand
Mar 3, 2026
Nathan Dean, a Washington policy analyst; Kirsten Fontenrose, a Middle East strategy expert; Lee Klaskow, a shipping and logistics specialist; and Emily Cohn, a retail and consumer analyst. They discuss Target’s upbeat profit forecast and turnaround plans. They explore shipping and airfreight disruptions from the US-Iran conflict, rising tanker rates and insurance changes. They cover strategic goals and political signals around military action.
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Target's Turnaround Centers On Store Experience And Partnerships
- Target's new CEO Michael Fiddelke is pushing an upbeat turnaround focused on improving store experience and partnerships.
- He plans faster brand partnerships like Roller Rabbit and more beauty and food initiatives to restore Target's "cheap, chic" appeal.
Grocery Investment Is Key To Reclaiming Higher Income Shoppers
- Target's main competitors remain Walmart and Amazon, with Walmart winning on grocery investment and convenience.
- Emily Cohn says Target lost customers by underinvesting in grocery, so expanding fresh and organic assortments is a likely lever to regain traffic.
Hire And Pay More To Improve Store Experience
- Improve in-store service by hiring and raising pay to make shopping more pleasant.
- The CEO said Target will invest in store staffing and spend about a billion dollars to improve store experience after cutting corporate roles.