Target reports a 2.6% decline in comparable sales for 2025, citing consumer boycotts and economic pressures as key challenges.
Target’s comparable sales decreased by 2.6% year over year in 2025, while operating income fell roughly 8%, reflecting ongoing struggles to attract price-sensitive shoppers. The retailer attributed the decline to consumer boycotts over policy changes and broader economic pressures, including inflation and tariffs.
The company’s new CEO, Michael Fiddelke, outlined a four-part strategy to rebuild customer loyalty, focusing on merchandising, guest experience, technology, and team development. Target’s leadership change follows a year of declining sales and operational challenges, with the retailer aiming to reverse the trend through store and digital improvements.
Shares reacted negatively to the earnings report, as investors weighed the impact of the sales decline against the company’s long-term recovery plan.