Rachel Warren

They've really, really struggled to retain a solid share of non-discretionary spend.

You've got a lot of consumers going to rivals like Walmart.

This has all created, I think, a bit of a perfect storm for Target.

Now, we have a new CEO coming in, Michael Fidelke.

He's a longtime veteran at the company.

He officially takes the role in February of 2026.

And under his leadership, I think Target really plans to implement what we're seeing as a multi-year plan on reinvigorating their private label brands, some of their key discretionary categories like toys and sporting goods.

Target's already trying to really invest heavily in store remodels.

They've been leveraging various AI-powered tools for personalized shopping.

Management is confident in their plan.

They want to regain market share.

They're planning to drive over $15 billion in revenue growth over the next five years.

I think that's possible, but I think that there's a major shift that needs to happen in the business in the next few years for that to happen.

A lot of the drag on their performance has been the shift in consumer spending.

They're still a profitable business, but those sales declines are really dragging overall.

I think how they manage

inventory efficiently, how they manage some of these AI-powered tools, how they're able to resonate with consumers in the next few years is really going to be key to that turnaround.

I don't think it's going to be more of the same.

I do think there's some very specific changes he wants to implement once he's officially in the CEO role.

But I think that there is and should be a healthy level of questioning from investors of what this is going to look like moving forward.