Target has faced no shortage of challenges over the past few years.
Like many retailers, the company has had to navigate shifting consumer spending habits, inflationary pressures, and a retail environment where shoppers have become more selective about where they spend their money.
Plus, as Target has faced increased competition from Walmart, Amazon, and Costco, its shortcomings have come to a head.
In recent years, customers have complained about Target’s messy stores, inconsistent inventory, and questionable customer service.Â
In May 2025, GlobalData managing director Neil Saunders called Target “a business that has made too many mistakes and has lost its way on several fronts.”
Despite these obstacles, Target’s leadership team is making a significant bet on something that may seem surprisingly simple – improving the customer experience.
Target invests in its guests
Retailers today face a difficult balancing act. Consumers want low prices, but they also expect convenience, speed, clean stores, reliable inventory, and a seamless shopping experience whether they shop online or in person.
Target believes that improving those touchpoints can help differentiate the brand and encourage shoppers to visit more frequently. And the company is putting its money where its mouth is.
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This past March, Target CEO Michael Fiddelke confirmed that the company is making a more than $2 billion incremental investment across the business. And that includes $1 billion earmarked to “elevate the guest experience.”
The investment includes improvements to stores, technology, inventory management, and operational processes that affect how customers interact with the brand.
So far, the company’s efforts seem to be paying off. Â
During the company’s first quarter 2026 earnings call, Target COO Lisa Roath said, “We’ve now provided more than 300,000 team members and leaders with our guest experience training, which reinforces our strategy by connecting daily behaviors to clear expectations and building accountability across the field.”
Roath also said, “We’re seeing early improvements in guest experience and satisfaction metrics in stores where we’ve increased support.”
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The long-term payoff could be significant
A $1 billion investment is a substantial commitment, particularly at a time when many retailers are focused on controlling costs. However, Target’s strategy shows that its management team views the guest experience as a growth investment rather than an expense.
When stores are easier to navigate, shelves are better stocked, and checkout processes are faster, customers are more likely to have positive experiences. Those experiences can translate into higher traffic, stronger sales, and increased market share over time.
The strategy may also help Target strengthen its position against larger competitors.Â
Walmart, for example, continues to dominate on scale and pricing. Rather than try to win solely on price, Target has historically focused on combining value with convenience, design, and a more enjoyable shopping environment.
The company’s new investment reinforces that approach.
Of course, spending $1 billion does not guarantee success. Consumers remain cautious, and retail competition remains intense.Â
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Target will need to execute effectively and demonstrate that it’s making an effort to get back in customers’ good graces.
By committing $1 billion to improving the guest experience, Target is betting that investing in customers today will pay dividends for years to come. And it may prove to be one of the smartest investments the company can make.
Maurie Backman owns shares of Target.
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