Target (TGT) Scrambles to Fix Store Chaos—Online Strategy Overhaul Looms
Retail giant Target hits a breaking point as messy aisles and checkout gridlock force a digital pivot.
The Backlash: Shoppers flee physical stores, abandoning carts amid overcrowding and operational snarls.
The Pivot: Target’s leadership now bets big on e-commerce—just as competitors double down on AI-driven logistics.
The Irony: A company that once mocked 'boring online shopping' now scrambles to avoid becoming a retail relic. (Wall Street analysts, ever helpful, suggest they try 'not being terrible.')
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Interestingly, this is a change from Target’s 2017 plan to use every store as a fulfillment hub. That system helped digital sales grow rapidly—from $6.6 billion in 2020 to nearly $21 billion in 2025—but it also made the work more complex for store managers and employees, who had to juggle customer service and logistics. However, by limiting ship-from-store tasks to select locations, Target can improve customer service. For example, in Chicago, next-day delivery cutoffs moved from noon to 6 p.m., and stores that stopped packing boxes saw cleaner aisles, fewer out-of-stocks, and a 10% rise in customer satisfaction.
Still, problems remain. Store traffic has declined since February due to rising grocery prices, competition, and backlash over social issues. Customers also dislike locked-up products and slow checkout lines. While Target has limited self-checkout to 10 items to speed things up, its edge in in-store experience has narrowed. Some shoppers now prefer Walmart (WMT) due to better prices and tidier stores. Therefore, analysts say that Target must invest more in store improvements, staffing, and tech to compete.
Is Target Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on Target stock based on seven Buys, 13 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average Target stock price target of $102.33 per share implies 14% upside potential.
