Target Is Winning Back Shoppers As Store Traffic Builds And Its Turnaround Takes Hold

BusinessRetailTarget Is Winning Back Shoppers As Store Traffic Builds And Its Turnaround Takes HoldByPamela N. Danziger,Senior Contributor.Forbes contributors publish independent expert analyses and insights. Pam Danziger reports on retail, focused on the luxury consumer market.Follow AuthorAug 21, 2026, 10:25am EDTSummaryTarget delivered a strong second-quarter report, with revenues up 5.3% to $26.5 billion and comparable sales climbing 3.8%, marking its second consecutive positive quarter. Growth was propelled by an 11% surge in hardline sales and 7% gains in beauty and food/beverage, attracting new customers and boosting foot traffic by 4.7% year-over-year. The retailer also reduced prices on over 10,000 items. Target is executing a four-pronged turnaround strategy focusing on merchandising, guest experience, tech acceleration, and store operations, leading to raised year-end guidance. While "Fun 101" categories are thriving, apparel and home still require attention. Analysts remain cautiously optimistic, acknowledging progress but awaiting sustained profit and traffic growth.Show More NEW YORK, NY - JUNE 24: People walk past the Target store on 42nd Street in Times Square on June 24, 2025, in New York City. (Photo by Gary Hershorn/Getty Images)Getty ImagesFor the second quarter in a row, Target delivered a positive sales report after digging itself into a deep hole, with revenues falling from $109.1 billion in 2022 to $104.8 billion in 2025. Second-quarter revenues ending the first of August rose 5.3% over last year—helped along by 17 new stores opened in the quarter—to $26.5 billion. More importantly, comparable sales climbed 3.8%.Propelling growth was an 11% surge in hardline sales—Target’s “Fun 101” segment, which includes toys, gaming, music, collectibles, tech accessories and sporting goods—along with 7% gains in both beauty and food and beverage. Together, these three categories account for more than half of merchandise sales. And they’re proving...