Retail giant Target (TGT) may be having some problems right now, but never let it be said that it is not trying to recover and keep itself alive and relevant. A replacement CEO will likely be some help, and Target is also looking to shake up the in-store experience for customers by reconsidering fulfillment strategies. Investors got behind the effort, and sent Target shares up modestly in Wednesday afternoon’s trading.
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Target recently ran some tests in Chicago to see which stores should be used to fulfill online orders. Part of a “built to fulfill” strategy, these locations have a little extra space devoted to packing orders for shipment. These stores are also said to have somewhat more modest foot traffic—called “…a manageable level of in-store business…”—that allows for order packing and shipment without getting in the way.
Some stores will actually be called upon to shut down their “pack stations,” as they are known, and instead focus on in-store fulfillment. With Target stores actually handling 96% of total merchandise sales, warehouses are a “…marginal share of its total sales,” reports note.
Fiddelke’s To-Do List
The announcement was made official, and Michael Fiddelke is set to take over as Target’s CEO. But what should he do when he gets formally installed on February 1, 2026? Some already have an idea of how this new CEO can hit the ground running.
Fiddelke has some plans of his own, but one plan from retail expert Jeff Macke called for “…a little kick in the ass,” and a return to basics like keeping the stores clean. Other potential plans called for aggressive marketing that called attention to grocery prices, as well as augmentation of product availability in the grocery section. More stock and more kinds of stock were also called for.
Is Target Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TGT stock based on nine Buys, 12 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 38.73% loss in its share price over the past year, the average TGT price target of $105.91 per share implies 9.04% upside potential.
