Target continues to struggle with declining sales, reporting a 1.5% decrease in net sales and a 2.7% drop in comparable sales for the third quarter. The chain’s GAAP EPS also fell to $1.51 from $1.85 last year. Despite efforts to attract customers, including curbside pickup, Target’s popularity has waned.

In contrast, Starbucks has seen a resurgence under new CEO Brian Niccol, focusing on customer experience, menu innovation, digital improvements, store renovations, and operational streamlining. This strategy led to a 1% rise in global comparable store sales in the fourth quarter of fiscal year 2025.

While Starbucks has found success with its back-to-basics approach, Target’s partnership with OpenAI may not be the solution to its woes, according to retail experts. Some believe Target’s focus on AI technology could distract from more critical issues like operational inefficiencies and lack of a clear position in the market.

As Target struggles to regain its footing, industry professionals caution against overinvesting in technology at the expense of customer service and product quality. Rapid technological changes may render certain investments obsolete, potentially impacting the company’s overall profitability. The focus should be on addressing core business challenges rather than chasing the latest trends.

Read more at Yahoo Finance: Target needs to follow Starbucks to win customers back