Target, Macy’s, Bed Bath & Beyond and Kohl’s Push Retail Turnarounds with Home Business in Focus
Four major retail companies generating more than $6.6 billion in annual home textiles sales are intensifying efforts to return to sustained growth, with early signs of recovery emerging across their home businesses.
While each retailer is pursuing a different strategy, recent quarterly performances indicate that investments in merchandising, store formats, private labels and category refreshes are beginning to gain traction.
Target Sees Home Segment Return to Growth
Target’s Home Furnishings and Decor segment returned to positive territory during the first quarter, recording 0.6% year-over-year growth to $3.24 billion, ending an eight-quarter streak of declining sales.
The retailer has launched a multi-year transformation of its home department, replacing nearly 75% of its decorative home accessories assortment during the second quarter.
Upcoming initiatives include a similar refresh of children’s home and bedding categories, alongside the rollout of Threshold shop-in-shop concepts across 200 stores. The impact of these changes is expected to become clearer when the company reports second-quarter results in August.
Macy’s Expands “Bold New Chapter” Strategy
Macy’s continued to build momentum during the first quarter, with its department stores delivering a fourth consecutive quarter of comparable sales growth, while Bloomingdale’s achieved record first-quarter sales.
The stronger-than-expected performance prompted the retailer to raise its full-year financial outlook.
Although furniture sales remained under pressure, the company reported improving trends in home textiles. CEO Tony Spring highlighted positive quarter-over-quarter performance in mattresses, bed linens, sheets and towels across both Macy’s and Bloomingdale’s stores.
Bed Bath & Beyond Accelerates Transformation
Bed Bath & Beyond Inc., parent company of Bed Bath & Beyond, The Container Store, Kirkland’s Home, buybuy Baby and Overstock, continued expanding both its retail and services portfolio.
The company has begun converting The Container Store locations into hybrid Bed Bath & Beyond/The Container Store formats designed around room-based merchandising.
Beyond retail, the company has announced acquisitions covering residential brokerage, mortgage, title, insurance, renovation, construction and installation services.
For the first quarter ended March 31, the company posted its first meaningful revenue growth in 19 quarters, with net revenue increasing 6.9% to $248 million.
Management expects service-related businesses to contribute a larger share of overall revenue as integration progresses.
Kohl’s Finds Stability in Home Categories
Although Kohl’s reported a 1.7% decline in first-quarter net sales to $3 billion, comparable sales declined only 1.1%, representing the retailer’s strongest comparable sales performance in more than four years.
After facing challenges in the previous quarter, Kohl’s home business delivered slightly positive comparable sales during Q1.
Strong demand was reported for products from Ninja and Shark, while private-label home brands Miryana and Mingle & Co., introduced in spring 2025, supported growth in soft home and tabletop categories.
Home décor also posted low single-digit comparable sales growth, aided by a merchandising strategy that broadened seasonal product assortments rather than increasing inventory depth.
Despite these improvements, Kohl’s continues to forecast flat to slightly negative full-year sales, making second-quarter performance an important indicator for the remainder of the fiscal year.
Home Category Remains Central to Growth Strategies
Across the retail sector, home furnishings, home textiles and décor continue to play a significant role in broader turnaround strategies.
From Target’s large-scale assortment reset and Macy’s improving home textiles performance to Bed Bath & Beyond’s expanding business model and Kohl’s renewed focus on private-label home products, retailers are investing heavily in strengthening customer engagement and restoring long-term sales growth.
