Home furnishings and décor segment records a modest first-quarter increase as the retailer begins a multi-year refresh of its home assortment.
Target recorded year-over-year growth in its Home Furnishings and Decor segment during the first quarter ended May 2, ending a streak of eight consecutive quarters of declining home sales.
According to Target’s 10K filing with the U.S. Securities and Exchange Commission (SEC), Home Furnishings and Decor sales increased 0.6% to $3.24 billion, compared with $3.22 billion in the first quarter of the previous year.
The result marks the first quarterly year-over-year increase for the Home segment since the holiday quarter ended Feb. 3, 2024, which was also the only quarter in fiscal year 2023 to post annual growth.
Target’s Home Furnishings and Decor business includes bed and bath, home décor, school and office supplies, storage, small appliances, kitchenware, greeting cards, party supplies, furniture, lighting, home improvement, and seasonal merchandise.
The home category had long served as one of Target’s key differentiators. However, following the peak of the COVID-19 pandemic, the retailer experienced a sustained decline in home sales. On an annual basis, the company has not recorded year-over-year growth in the segment since 2021, with approximately $4.6 billion in sales shifting away during that period.
For its most recent full fiscal year, annual home sales declined by $1.09 billion, or 6.5%, to $15.6 billion. It was the third consecutive year in which the retailer reported a decline of more than $1 billion in annual home sales.
Under the leadership of CEO Michael Fiddelke, who assumed the role on Feb. 1, Target has begun implementing a multi-year strategy to strengthen its home business.
The initiative starts with replacing nearly 75% of the decorative home accessories assortment during the current quarter. Later this year, a similar refresh is planned for the kids’ home and bedding categories as the retailer works to refine its product assortment and value proposition.
The home refresh will continue into 2027, when the company plans updates across its kitchen and storage categories.
Target also plans to introduce Threshold shop-in-shop concepts in 200 stores during the second quarter. The initiative is part of a broader strategy to simplify the retailer’s portfolio of private-label home brands while increasing emphasis on Threshold, its largest-performing home brand.
