Target Drops $1B Glow-Up to Stop Shopping Sadness

KEY POINTS

•Target announced Q3 sales were down 2.7%, falling below analysts' expectations for the Minneapolis-based retailer.
•Incoming CEO Michael Fiddelke said he'll take over February 1 and aims to get Target 'back to growth as quickly as possible.'
•To combat sales declines, Target will boost annual capital spending from $4 billion to $5 billion, including store remodels and a merchandise shuffle.
•Target will launch a ChatGPT integration allowing fresh food purchases and drive-up fulfillment options starting next week in beta.

Target's not playing Santa this year: after a sad saga of 10 quarters stuck in the sales slow lane, incoming CEO Michael Fiddelke is stepping in February 1 with a billion-dollar makeover plan. The retail giant, based in chilly Minneapolis, reported Q3 sales dipped 2.7%, flubbing analysts' -2.06% hopes but squeaking out $1.78 earnings per share. September was a retail graveyard, while August and October just barely survived. Shoppers are busy picking Halloween candy over holiday decor, with Chief Commercial Officer Rick Gomez noting folks want presents 'under the tree, not on it.' Target's new weapon? ChatGPT integration promising drive-up orders, fresh food bots, and a floor shuffle bigger than your latest Netflix binge. Meanwhile, Target’s stock lurched down 35% this year, losing face to Walmart's 12.6% climb—and an only slightly less awful Costco. Fiddelke says they’re aiming to be ‘back to growth ASAP,’ which sounds less like a plan and more like retail desperation disguised as optimism.

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Mockingbird News

@MockingbirdNews · now

New Target CEO plans a $1B facelift after flirting with disaster for 10 quarters. Because nothing says 'come back' like remodeling and talking to ChatGPT about candy.

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