Target CEO Admits Sales Struggles as Company Rolls Out Major Fix

Target is pulling out all the stops after a year of steady decline. 

CEO Brian Cornell isn't sugarcoating the problem. "We're not satisfied with this performance," he said during the company's latest earnings call, citing ongoing drops in traffic and sales, especially in discretionary categories.

The retail giant, once a pandemic-era powerhouse, has seen demand for nonessential goods shrink under the weight of inflation and shifting consumer habits. While other retailers like Walmart and Costco face similar headwinds, Target's losses have been sharp enough to spark action from the top.

Cornell admitted several factors have compounded the situation: "Five consecutive months of declining consumer confidence, uncertainty regarding tariffs, and reaction to belonging updates in January," he explained. But rather than just listing obstacles, he promised urgent course correction.

That fix? Go back to value, Style On Main reported.

"For the summer season, we’re offering more than 10,000 new items starting at just $1," Cornell revealed. He was referencing the company's popular Bullseye’s Playground section, where most items cap out at $5. Beauty, school supplies, and household goods are all part of the plan.

The shift is more than seasonal. Cornell has empowered COO Michael Fiddelke to lead a new Enterprise Acceleration Office tasked with streamlining operations and improving inventory reliability. Fiddelke, a 20-year Target veteran, is charged with helping the company move "faster and smarter," with a focus on improving stock levels on top-selling items and minimizing losses from theft and waste.

"We've made real progress on inventory shrink," Fiddelke noted, pointing to stronger profit margins thanks to tighter controls. 

He added that Target is also prioritizing availability during peak shopping periods—a subtle nod to frustrations many shoppers felt over empty shelves during the holidays.

Back-to-school and college season will be the next big test, and it starts in just a couple of weeks. Cornell said Target plans to "stand tall for value" during that stretch, focusing on affordability as families gear up for major purchases.

Ultimately, the message is clear: Target knows it slipped. Now it's doubling down on the simple things that made it a household name in the first place. 

All eyes will be on Target's new strategy as the coming shopping season begins.