While Amazon and Walmart lean into AI and e-commerce investments, Target’s incoming CEO Michael Fiddelke is taking a different approach.

Target is betting billions on stores, including remodels, bigger formats, and upgraded tech, to achieve a comeback after a prolonged sales slump. The struggling retailer’s move aligns with data showing Gen Z has a renewed appetite for in-person shopping and discovery-led retail experiences.

Target plans roughly $5 billion in capital spending next year, including an additional $1 billion for 2026, as it works through declining comps and weaker traffic while leaning into categories that are still growing, notably beauty.

Target will direct about $5 billion toward new and remodeled stores, experience upgrades, and technology and digital fulfillment, with

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