Target's home category experienced another difficult year in 2025, with annual sales falling by $1.09 billion, or 6.5%, to $15.6 billion, according to the company's latest financial report. It marks the third consecutive year in which the retailer has lost more than $1 billion in home sales, continuing a downward trend that began after the segment peaked at $20.3 billion in 2021.
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Since that peak, Target has seen $4.6 billion in home sales shift elsewhere. The home division includes categories such as bedding and bath, home décor, furniture, kitchenware, lighting, storage, small appliances and seasonal products.
Despite the decline, the category still performs better than before the pandemic. In 2019, home sales totaled $14.3 billion, meaning the segment remains above pre-COVID levels.
To revive growth, Target is introducing several changes to its home strategy. The company plans to simplify its private-label brands and focus more strongly on Threshold, its most successful home brand. A redesigned version of the brand will launch this summer, along with dedicated Threshold spaces in more than 200 stores.
Target is also refreshing product assortments across the department. By June, the retailer expects to update 75% of decorative accessories, while major changes to the bedding category are planned for the fall.
The company also intends to strengthen its offering in furniture, mattresses and rugs, aiming to improve style while managing inventory more carefully.
Source: www.furnituretoday.com
