Target Adds Premium Baby Boutiques to 200 Stores in Bid to Reverse Sales Slump
The retailer has introduced hands-on baby boutiques featuring UPPAbaby, Stokke and Bugaboo in roughly 10% of its locations as part of its largest investment in the category in more than a decade. Chief Merchandising Officer Cara Sylvester highlighted the spending power of families with young children. Target anticipates net sales will rise about 2% in 2026 under new CEO Michael Fiddelke.
cnbc.comTarget has opened baby boutiques in about 200 stores, allowing shoppers to see, feel and test strollers, car seats and high chairs outside of cardboard boxes. The boutiques carry popular and higher-end brands including UPPAbaby, Stokke and Bugaboo. A $1,000 UPPAbaby stroller is available in the displays.
The baby boutiques represent roughly 10% of Target's store footprint. Target has added nearly 2,000 new baby items available across all stores and online. The baby boutiques rolled out over the past two months as of May 2026.
The revamp of the baby department is Target's largest investment in that category in more than a decade. The initiative forms part of a broader effort to refresh stores and attract busy families, a key customer segment. In an interview at a Target store in Clifton, New Jersey, Chief Merchandising Officer Cara Sylvester said families with children ages 5 and under spend two times as much as the average Target shopper.
Cara Sylvester said families with children across age groups visit stores twice as much as the average Target shopper. She said Target recognized it had a large share of sales from young families when it took a hard look at its business after Michael Fiddelke got tapped to lead its turnaround efforts.
"We see an incredible opportunity at Target to really deepen our relationships with busy families and become their first choice for even more of life's everyday needs," Sylvester said.
Michael Fiddelke stepped into the CEO role in early February 2026. Whether Target makes progress with these shoppers will help determine whether he can follow through on his pledge to end the company's three-year sales slump. The retailer is scheduled to report its first-quarter earnings on May 20, 2026.
Target expects to return to annual sales growth in 2026. It anticipates net sales will rise about 2% year over year in 2026. Target anticipates net sales will grow in every quarter of 2026 compared with 2025 periods.
Customer traffic across Target's stores and website has dropped for the past four quarters in a row. The company said in March that the strategy of improving the quality of its offerings, stepping up its store experience and expanding convenient options like same-day pickup and delivery is critical to boosting sales. com reported that the changes are aimed at competing with Walmart and Amazon.
Target already sells a lot of baby items, including diapers and clothing, yet it is trying to freshen its baby department to attract more sales from busy families.
Key Facts
Story Timeline
4 events- 2026-05-10
Current date; baby boutiques have rolled out over the past two months
1 sourcecnbc.com - 2026-03
Target announced expectation to return to annual sales growth in 2026 with net sales rising about 2%
1 sourcecnbc.com - 2026-02
Michael Fiddelke stepped into the CEO role
1 sourcecnbc.com - 2026-05-20
Target scheduled to report first-quarter earnings
1 sourcecnbc.com
Potential Impact
- 01
Increased traffic and spending from families with children ages 5 and under in Target stores
- 02
Potential recovery from four consecutive quarters of declining customer traffic
- 03
Stronger competitive positioning against Walmart and Amazon in the baby products segment
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