Target's slump is accelerating as the retailer confronts weakening sales, strategic uncertainty and a steep drop in its share price that has shaken investor confidence ahead of the critical holiday season.
The company's stock is trading near $88, down roughly 40% over the past year and hovering close to multi-year lows. The selloff reflects mounting concern that Target's declining traffic, sluggish merchandise performance and muddled competitive identity are becoming structural rather than temporary challenges. Analysts say the stock's deterioration underscores a broader crisis of confidence in the retailer's ability to regain relevance with shoppers who are increasingly prioritizing essentials and value.
Target's struggles intensified after the company reported third-quarter revenue of $25.27 billion, a 1.5% decline from last year, along with a 2.7% drop in comparable sales. In-store traffic remained weak while discretionary categories—historically the heart of Target's "cheap-chic" appeal—continued to underperform. Executives warned that consumers remain under pressure and are spending cautiously, forcing the retailer to rely more heavily on promotions while confronting higher costs.
The company has acknowledged that its organizational structure has grown overly complex, contributing to slow decision-making and inconsistent store execution. Cost-cutting measures, including corporate layoffs, are underway as part of a broader turnaround effort. At the same time, Target is contending with reputational strain stemming from political backlash over prior DEI initiatives and related investor litigation, further complicating its attempt to stabilize the brand.
Leadership uncertainty is adding to investor unease. CEO Brian Cornell is set to step down in early 2026, handing the role to longtime executive Michael Fiddelke. But the transition comes at a moment when Target lacks a clear strategic identity, with analysts questioning whether the company can sharpen its value proposition quickly enough to compete with Walmart's price leadership and Amazon's scale and speed.
The retailer has lowered its full-year earnings outlook and signaled that sales will likely decline again in the holiday quarter. For investors, the guidance has reinforced concerns that Target's downturn could stretch well into next year. With shares already deeply discounted, the market appears to be pricing in little room for error.
For now, the company faces immediate pressure to show signs of stabilization. Without an improvement in store traffic, merchandising relevance and operational clarity, Target risks losing further ground to competitors—and watching its stock fall even further as doubts continue to mount.
