Target CEO Michael Fiddelke Announces $2 Billion Investment, Launches Beauty Studios in 600 Stores

✴︎

3.4.2026

Quick Facts

Target will invest $2 billion in 2026, including $1 billion in additional capital and $1 billion in operations
Target Beauty Studio launches in 600+ stores this fall with 60+ new prestige beauty brands
The retailer ends its five-year Ulta Beauty partnership in August 2026

Target CEO Michael Fiddelke unveiled a sweeping $2 billion investment plan during his first investor day, marking the retailer’s most significant strategic pivot in years as it battles three years of declining sales.

The 49-year-old CEO, who took over from Brian Cornell on February 1, announced Target Beauty Studio will launch in more than 600 stores this fall. The new beauty destination will feature over 60 prestige brands new to Target, focusing on skincare, haircare, fragrance and cosmetics.

The beauty overhaul replaces Target’s partnership with Ulta Beauty, which ends in August 2026 after five years. Target’s beauty department transformation aims to capture growing demand for elevated, prestige products.

Target’s $2 billion investment includes more than $1 billion in additional capital expenditures and $1 billion in operating investments. The company will spend hundreds of millions on store payroll and training to address messy shelves and long checkout lines that have driven shoppers away.

The Minneapolis-based retailer reported a 2.5% drop in fourth-quarter comparable sales, with net sales falling 1.5% to $30.5 billion. Full-year revenue declined 1.7% to $104.8 billion, capping a difficult year marked by shoppers curbing discretionary spending.

Fiddelke outlined four growth priorities: leading with merchandising authority, elevating guest experience, accelerating technology, and strengthening teams and communities. Merchandising chief Cara Sylvester plans to overhaul 75% of decorative accessories and relaunch the Threshold home brand.

Target shares jumped 7% following the earnings report and 2026 guidance. The company projects annual earnings per share of $7.50 to $8.50 and expects full-year net sales to grow around 2%.

RBC analyst Steven Shemesh said the team must convince investors that changes will help Target better compete with Walmart and Amazon. Emarketer’s Sky Canaves noted concerns about weakness in ecommerce, which affects Target’s non-merchandise revenue streams.

The 20-year Target veteran faces pressure to reverse the retailer’s performance decline. Target has struggled as shoppers shift to Walmart for everyday value and dealt with backlash over Pride Month assortments and diversity programs.