Target Stock Plummets 35% as Sales Miss Again

Target continues to struggle as the retail giant reported disappointing Q3 results, marking its fifth consecutive quarter of sales decline. The company’s comparable-sales dropped 2.7%, signaling ongoing challenges despite efforts to reverse course. With its stock down nearly 35% this year, investors remain concerned about the company’s ability to recover.

The Price of Fashion Inflation Fatigue

The underlying problem stems from shifting consumer preferences amid inflation. Target’s once-reliable “cheap chic” clothing and home goods mix has fallen out of favor with price-conscious shoppers who are adjusting their spending priorities. Neil Saunders, analyst at GlobalData Retail, summed up the situation bluntly: “Target is really struggling and does not seem to be able to climb out of the hole it has dug itself into.”

The struggles have persisted for nearly four years, forcing Target to cut its global workforce by 8% earlier this year to reduce costs while sales continued sliding downward.

A Billion-Dollar Turnaround Bet

To combat these headwinds, Target announced an ambitious $1 billion investment plan for 2026 focused on new store openings, remodels, and digital improvements. The retailer also plans to slash prices on 3,000 everyday items to attract budget-focused consumers back to its stores.

Whether these initiatives prove sufficient remains uncertain. The retail landscape continues shifting, and Target’s ability to regain relevance with shoppers will determine if the turnaround succeeds or if further declines lie ahead.