Dive Brief:
- Target reached a three-year high for its net promoter scores and customer satisfaction, EVP and COO Lisa Roath said on a Q1 2026 earnings call Wednesday. The executive called out its in-store checkout experience, cleanliness and associate interactions in particular.
- The retailer has added more payroll hours and provided guest experience training for more than 300,000 associates and leaders, according to Roath. Customer experience and satisfaction metrics are higher in stores that received increased support.
- However, in-stock rates and product findability remain significant points of friction. “We cannot deliver a great experience if the right product isn’t on the shelf whenever, wherever and however our guests choose to shop with us,” Roath said on the call.
Dive Insight:
Target reported a strong quarter, but the retailer still sees plenty of work ahead as it invests in its stores and associates to win over the young families, a key demographic.
The company’s results exceeded expectations, with comparable sales up 5.6% year over year in the first quarter of 2026, according to an earnings report. Net sales rose 6.7% year over year to $25.4 billion.
“One quarter does not define success,” CEO Michael Fiddelke said. “The majority of the work remains in front of us, and we have significant opportunities ahead to further strengthen our relationship with busy families in service of becoming the most delightful shopping experience in retail.”
Target is tackling its in-stock problem through a combination of supply chain improvements and better associate scheduling, according to Roath. The retailer has improved connectivity across its system, starting with optimized merchandising decisions regarding how products flow through the system.
The company also identified its peak hours for customer friction and has added more payroll hours during these times to match associate availability with the labor load, according to Roath.
“Our store team members are at the heart of Target, and making sure that we put that payroll where the workload is is critical to us being able to elevate that guest experience,” Roath said. “That means lining that up on nights and weekends, making sure that we’re staffing to provide a great experience, and we’re seeing that pay off.”
The rebalanced workload lets associates spend more time helping customers, according to Roath. The company is also simplifying its fulfillment processes so it can continue to lean heavily on store-based fulfillment without compromising the in-store experience.
Target is focusing its store remodeling efforts, which will affect 100 locations this year, on areas where they will have the biggest impact in both guest experience and financial returns, according to Roath.
“Our mission is clear: drive greater consistency, improve reliability, and leverage technology to enable our teams to continue to deliver the most delightful guest experience in retail,” Roath said.”Because when we get that right — when every guest can count on Target to be easy, inspiring, and friendly — that’s how we unlock the full potential of our business.”
Target’s focus on families, rather than trying to serve every customer demographic equally, is a step in the right direction, according to Halle Stern, senior principal analyst in Gartner’s marketing practice. The retailer’s smaller store improvements, like updated bathrooms and carts, can create outsized returns when they cater to specific needs.
