Target Corp. shares jumped as much as 8.2% after new CEO Michael Fiddelke outlined an ambitious turnaround plan focused on trendy food products, in-store beauty services and category expansions. The big-box retailer expects net sales growth this year, signaling progress in reversing a three-year sales slump that has seen Target lose market share to Walmart and Costco.

Fiddelke's strategy echoes former CEO Brian Cornell's playbook from over a decade ago, with renewed emphasis on beauty, baby and wellness categories where Target claims competitive advantages. The company plans to double its grocery assortment over three years, add beauty studios to 600 stores, and introduce a baby concierge service. These changes come as Target discontinues its partnership with Ulta Beauty Inc.

Investors remain cautiously optimistic but skeptical about whether the revamped strategy can deliver consistent growth. UBS analyst Michael Lasser noted similarities to Target's 2010s approach, though Fiddelke argues the company's design-led differentiation and enhanced customer experience provide a stronger foundation. With 30 new stores planned this year and improvements to same-day delivery and membership benefits, Target is betting on purposeful changes in categories where it can win back customers and drive profitable growth.