Target merchandising refresh could drive traffic and margins, Jefferies says

Retail & Consumer Retail Written by: Ian Lyall 11:54 Fri 25 Sep 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Target Corp ( NYSE:TGT ) View Price & Profile Target merchandising refresh could drive traffic and margins, Jefferies says Published: 11:54 25 Sep 2026 EDT Target Corp (NYSE:TGT) 's focus on value and affordability appears to be resonating with shoppers, according to Jefferies, after analysts visited a downtown Denver store and saw lower inventory levels on several promoted products. Multiple items carrying promotional signage or markdown stickers showed lower inventory levels than surrounding merchandise, suggesting customers were responding to value-oriented offerings. The apparel department appeared well-presented and well-stocked, according to the note. Seasonal merchandise occupied significant floor space, with Halloween costumes, pumpkins and other seasonal products prominently displayed throughout the store. Sporting goods showed strong sell-through, with bike helmets, water bottles and other outdoor products appearing depleted, which Jefferies linked to Denver's active outdoor culture. Within grocery, select produce categories, including berries and other fruit, were offered at promotional prices, while parts of the beauty assortment also appeared to benefit from promotional support. The bank noted that it had hosted Target's chief financial officer, Jim Lee, and the company's investor relations team earlier this year. Management remains focused on accelerating newness, refining assortments and strengthening value perception through differentiated offerings. Target is also executing broad assortment refreshes across beauty, food and beverage, home and apparel categories. Jefferies said it believes investors may be underappreciating the scale of Target's merchandising transformation and its potential to support sustained traffic growth and margin expansion. The bank's earnings per share estimate for fiscal 2026 stands at $10.50, roughly 21% above consensus. For the 2027 fiscal, Jefferies forecasts revenue growth of 1%, in line with consensus, and earnings per share growth of 1% above consensus. Continue reading