Target makes major changes to checkout, customer pain points
Daniel Kline
Tue, December 23, 2025 at 1:14 PM EST
4 min read
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Target has seen its in-store business struggle, although it returned to positive same-store sales in its most recent quarter. That represents a comeback after multiple quarters of declining same-store sales.
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Q2 2024:+0.7% (Target Investor Relations)
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Q3 2024:(1.9%) (Target Investor Relations)
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Q4 2024:(0.5%) (Target Investor Relations)
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Q1 2025:(5.7%) (Target Investor Relations)
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Q2 2025:(3.2%) (Target Investor Relations)
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Q3 2025:–3.8% (Target Investor Relations)
Those numbers paled in comparison to rivals Walmart and Costco.
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Walmart U.S. comps: Rose 4.5-4.6% in recent quarters (FY26), according to Walmart Investor Relations.
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Costco U.S. comps: Climber 5.9-6.6% in comparable periods, typically stronger than Walmart’s store comp, reported Mass Market Retailers.
Target's incoming CEO Michael Fiddelke believes that his chain needs to make meaningful efforts to improve its in-store experience. He talked a lot about those changes during Target's third-quarter earnings call.
Target plans to fix the guest experience
As an avid Target shopper and retail observer, I’ve noticed longer cashier lines and frequent self-checkout delays when multiple machines require managerial assistance.
This aligns with comments from Fiddelke, who stated on the Q3 earnings call that improving store operations and associate availability is a top priority.
"Let's turn now to our team's efforts to elevate the guest shopping experience, both in stores and digital, a great guest experience means a lot of things, but it starts with a warm, friendly and helpful team," he said.
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That's not just about asking workers to smile and greet customers. The CEO wants to give employees more time to be hands-on interacting with customers.
"In stores, we're making changes to give our team members more time to focus on what matters most, spending time helping our guests. Through enhanced digital tools, we're reducing time devoted to backroom tasks through more efficient truck unloading and stocking. Every hour we save is being reinvested to allow more guest interaction with a focus on friendliness and service that makes Target Target," he added.
Target needs to fix its worker problem
As part of its new CEOs in-store turnaround plan, Target implemented a new 10-4 policy for workers. It requires employees who are within 10 feet of customers to smile, make eye contact, wave, and use friendly, approachable, and welcoming body language.
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That seems to miss the point, GlobalData Managing Director Neil Saunders wrote on RetailWire.
"Rather than mandating smiles, Target’s senior management should give associates reasons to be naturally cheerful. Unfortunately, they have completely failed at this task over recent years by overwhelming associates with work, not listening to them, and not making proper investments in stores and processes."
Brad Halverson, another RetailWire Brain Trust member, agrees with Saunders.
"Target leadership should instead focus on giving store employees tools to take care of customers, solve problems, and make their shopping trip better. Then in the process, yes, its OK to ask, even mandate, store teams be friendly and greet customers," he posted.
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Analysts are skeptical of Target's plan
While the choice was expected, some analysts think Target has put its turnaround in the hands of someone who helped lead the chain into its current situation.
“We are not surprised by the news, given Mr. Fiddelke had been groomed to become CEO, evidenced by his multiple leadership roles, including COO and CFO,” Telsey Advisory Group analysts led by Joe Feldman said in a note shared with Retail Dive.
“We expect a smooth leadership transition, although we are unsure of how Mr. Fiddelke will change the strategy he helped create.”
Ougoing CEO Brian Cornell's blessing may also be seen as a mixed bag.
“Since I arrived at Target, I have consistently relied on Michael’s strategic insights and sound judgment when making decisions,” Cornell told analysts on an earnings call. “And he has played a critical role in advancing the key initiatives that have grown and sustained our business.”
Saunders also told RetailDive that Cornell staying on as executive chairman seemed like an odd choice.
"To us, this seems like a reward for failure. It also runs the risk of having the person who has not guided Target well having some influence over future policy. In our view, the boardroom needed a clear out but, instead, has received a light dusting which has failed to address the debris that litters the floor,” he said.
Related: Walmart makes customers bold holiday promise
This story was originally published by TheStreet on Dec 23, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.
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