Minneapolis – Target’s downward trajectory in home furnishings and décor sales continued for the third year in a row.
Sales dropped 4.3% to just under $17 billion for the fiscal year ended Feb. 2, according to the retailer’s recent 10K filing with the SEC.
The category includes bed and bath, home decor, school/office supplies, storage, small appliances, kitchenware, greeting cards, party supplies, furniture, lighting, home improvement, and seasonal merchandise.
The retailer is still selling more home furnishings and decor than it did in the pre-pandemic year of 2019, but for the first time since the Covid boom, home volume has fallen below the level of its 2020 sales.
The sector’s share of total merchandise sales continues to ebb as well. Home furnishings and decor accounted for 16% of sales last year, down from 17% in 2023 and 18% in 2022.
“In home, we have been on a journey,” said Rick Gomez, EVP and chief commercial officer, addressing investors last week during Target’s 2025 Financial Community Meeting.
The retailer is “doubling down” on its legacy for affordable style by accelerating newness in its Threshold and Hearth & Hand with Magnolia brands. Target will also ramp up newness and the in-store shopping experience for seasonal and holiday merchandise as well as Back-to-College.
In the digital realm, the Target Plus marketplace provides a significant opportunity to accelerate home growth, said Gomez. The company is focused on working with vendors and brands that complement the retailer’s assortment and provide more of the product breadth.
See also:
- Target moving to get its groove back in the home business
- Target hedges on guidance as tariffs roll out