Target’s grocery boost fuels growth surge
Target’s grocery expansion drives a 7.2% sales surge, boosting overall growth and outperforming last year’s results.
Target’s grocery business is driving a turnaround, with food and beverage sales surging 7.2% year over year in the second quarter of 2026, the company reported Wednesday. The growth helped lift overall results, including a 5% increase in net sales to $26.5 billion and a nearly 3% rise in comparable-store sales.
The performance marks a sharp rebound from the same period last year, when food and beverage sales grew less than 1% and both net and comp sales declined. The improvement comes as Target works to regain momentum under CEO Michael Fiddelke, who took the role in February.
Remaking the center store
Target overhauled nearly half of its grocery aisles during the quarter, part of what Fiddelke called the largest in-store transition in a decade. The changes included expanding fresh produce, adding space for international foods, and boosting selections in high-growth snack categories like protein bars and meat sticks.
Chief Merchandising Officer Cara Sylvester said the adjustments reflect a push to make Target a primary grocery destination for busy families. While apparel sales lagged, the focus on food appears to be paying off—guest satisfaction and inventory reliability metrics have reached multi-year highs, Fiddelke said.
“Even with this volume of change, we’re seeing continued progress,” he told analysts. The goal, he added, is to position Target as a place where shoppers discover new products, whether in groceries or other categories.
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The shift isn’t just about layout. Target has also worked to reset customer expectations, balancing operational improvements with efforts to enhance the shopping experience. Traffic trends in the second quarter suggest those efforts are resonating, though executives didn’t provide specific foot-traffic numbers.
What’s selling—and what’s not
Sales of better-for-you snacks and international foods performed particularly well, Sylvester said. Apparel, however, remained a weak spot, dragging on overall performance.
That strategy may hinge on whether the company can sustain its momentum beyond the initial reset. The second-quarter results suggest it’s on the right track, but the real test will be whether the changes translate into long-term loyalty.
For now, the numbers are moving in the right direction. Fiddelke said the company is “encouraged by the progress” but remains focused on execution.
