Target Swaps TVs for Trading Cards in a Massive Retail Redesign

Target's latest strategy is increasingly taking shape on the sales floor.

During its second-quarter earnings call on Aug. 19, the retailer outlined sweeping changes to how it allocates physical space across its stores, moving away from some legacy presentations and making room for categories tied to emerging consumer trends and changing shopping behaviors.

Target completed the largest amount of space transformations in more than a decade during the quarter, according to Chief Operating Officer Lisa Roath. Chief Merchandising Officer Cara Sylvester went even further, describing one element of the effort as the largest space move in the company's history. 

"We got really clear on the categories where Target had a right to lead," Sylvester said during the call. The retailer also identified areas where its "space [was] not working harder for us," she added. 

Making Food More Relevant

One of Target's most significant changes came in grocery.

The retailer completed a major center-store reset, expanding fresh produce, creating new focal points for seasonal offerings and adding space for fast-growing categories including snacks, global foods and functional coffee. Target also continued introducing emerging brands and trending products. 

The changes appear to be generating early results. Following the transition, snack sales were running more than 15% ahead of the previous year, with particular momentum in protein bars, meat sticks and better-for-you snacking options. 

The move toward functional coffee and better-for-you snacks illustrates the broader strategy at work: Rather than simply refreshing existing aisles, Target is allocating more physical space toward categories it believes are gaining relevance with its guests.

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From TVs and Bikes to Fandom

Target made similarly significant changes in its "Fun 101" category.

The retailer evolved legacy presentations around TVs and bikes, dedicating more space to wearable technology, Lego, trading cards and collectibles. It also added a plush wall and expanded its Lego assortment as part of an effort to make the shopping experience more immersive. 

Early results have been encouraging. Lego sales were up more than 30% year over year, plush sales increased more than 20%, and sales of Target's style-forward $10 Heyday headphones were running more than 35% ahead of last year. 

The changes also reflect Target's growing emphasis on culture and fandom as merchandising opportunities. The retailer has created a new pop-culture destination bringing together trading cards, collectibles and exclusive collaborations into a more cohesive experience. 

That approach extends to Target's broader collaboration strategy. The company pointed to its Pokémon partnership and LoveShackFancy collaboration as examples of how cultural relevance can drive newness and discovery across multiple categories. Target said the LoveShackFancy collection became its largest limited-time collaboration in company history. 

Sharper Choices About Space

The store changes are part of Target's broader effort to build what executives call "merchandising authority" — developing a clearer point of view about where the retailer can differentiate and concentrating investment accordingly.

Target has identified seven priority areas for disproportionate investment: beauty, health and wellness, food, baby and kids, women's style, home, and culture-driven categories including toys and entertainment. Together, those areas currently account for about half of Target's sales. 

Not every part of the business is moving at the same pace. Target acknowledged that home and apparel remain works in progress and will require continued changes into 2027 and beyond. But the retailer said categories where it has already made significant changes are showing encouraging signs of guest response. 

For Target, the strategy is ultimately about making increasingly deliberate choices about its finite physical footprint.

"We need to make [these] choices more consistently," Sylvester said, pointing to the importance of staying close to guests, moving "at the speed of culture" and remaining disciplined about where Target invests its space. 

As retailers continue looking for ways to differentiate the physical store, Target's latest reset raises a broader question: If every square foot must work harder, what deserves to be there, and what no longer does?