Target Corporation (NYSE: TGT) announced plans to invest an additional $2 billion in 2026, including more than $1 billion in capital expenditures and $1 billion in operating investments, according to a company statement from its financial community meeting.

The retailer will allocate the operating investment toward store transformations, increased payroll and training, and technology enhancements including artificial intelligence. Target plans more changes within all stores than any year in the last decade, with updated floor plans and enhanced displays across the chain.

The company will increase capital investment by more than $1 billion in 2026 to approximately $5 billion total, supporting new stores, remodels, technology and supply chain investments. Target expects to open more than 30 new stores this year as part of its plan to add 300 new stores by 2035, while investing in over 130 planned full-store remodels.

Target will mark a milestone this month with the opening of its 2,000th store in Fuquay-Varina, North Carolina. The retailer operates nearly 2,000 stores and serves customers at Target.com.

"This new chapter of growth at Target is defined by clear choices and rooted in a deeper understanding of our unique lane in retail, the guests we serve and the areas where we're distinctly positioned to win," said Chief Executive Officer Michael Fiddelke.

The strategy focuses on four areas: merchandising authority, guest experience elevation, technology acceleration, and team and community strengthening. Target plans to refresh its home experience by relaunching its Threshold brand and adding shop-in-shops in 200 stores. The company will introduce Target Beauty Studio and expand its baby boutique featuring partnerships with UPPAbaby, Bugaboo, Doona and Stokke.

In food and beverage, Target plans to increase newness across its assortment by nearly 50% and become one of the first national retailers to offer a cereal assortment made without certified synthetic colors in May.