Target Boosts Capex to $5 Billion for Stores and Tech Upgrades
Target Corporation (TGT) is significantly increasing its capital investments to enhance its store network, supply chain, and technology capabilities. The retailer plans to spend approximately $5 billion in fiscal 2026, focusing on new stores, full-store remodels, and technology upgrades. In the first half of the year, Target deployed about $2.4 billion in capital expenditures, a nearly 30% increase from the previous year.
Store investments remain a priority for Target. The company opened 17 new stores in the second quarter, bringing the first-half total to 24. Additionally, over 100 full-store remodels were underway, with a target of roughly 130 for the year. These investments aim to improve the in-store experience and support fulfillment, as stores handle more than 95% of the company’s sales.
Target is also accelerating its digital and technology capabilities. The company is modernizing its technology foundation to personalize experiences across stores and digital channels, strengthen its retail media business, and help merchants respond to emerging trends faster. Target has partnered with OpenAI, Google Gemini, and other leading platforms to explore the future of agentic commerce. Digital traffic sourced from external AI platforms is growing more than 3.5 times the industry rate compared to a year ago.
On the operational side, Target is investing in Proxima, a digital twin of its middle-mile inventory positioning system. This tool allows teams to test and iterate inventory-flow plans before implementation, assess potential downstream effects, and make inventory decisions with greater confidence. Target also reported fulfilling nearly 30% more same-day and next-day units in the second quarter than a year earlier, highlighting the benefits of technology, inventory reliability, and network investments.
By balancing physical store expansion with investments in digital and supply-chain infrastructure, Target’s capital expenditure plan is strengthening its operating network to support faster fulfillment, greater inventory reliability, and improved service across guest touchpoints.