Nowadays, the cart is the first thing you touch when you walk into a Target in any midsize American city, before the lights and the smell of popcorn wafting from the café. Oversized and red. It’s a little more squeaky than before. Now, the chain is investing actual funds to alter that. Target is replacing about 500,000 carts with what it refers to as the Series 3 APC, an all-plastic design that is more robust, easier to push, and made to accommodate the ridiculously large insulated tumblers that have somehow come to represent the country.
You could roll your eyes at this. Redesigning a cart seems like the kind of announcement executives make when they’ve run out of more ambitious ideas. However, there is a logic beneath it. Target’s vice president of store design, Sarah Deuth, has referred to the cart as the “first touchpoint”—the actual handshake between a customer and the company. The company has concluded that handshakes are more important than it lets on after years of declining sales and a steadily shifting customer base toward Walmart and Amazon.
This is supported by substantial numbers. Target’s larger turnaround, spearheaded by new CEO Michael Fiddelke, includes a $5 billion capital plan that was unveiled in November of last year, on top of a $1 billion operational investment for 2026. More than 130 store renovations, a “concierge” service for new parents, and upscale baby sections are all funded in part by that money. The carts are paid for with a tiny portion of it. Shares fell nearly 4% following the most recent earnings beat as investors watched all of this from the cheap seats. This serves as a reminder that Wall Street’s patience is limited even in positive news.
As you stroll through a renovated store, you get the impression that Target is attempting to recall its former identity. The “Tarjay” of the 2000s, which was reasonably priced, somewhat ambitious, and strangely enjoyable to explore, became hazy at some point. The phrase “empty shelves” became popular. According to a YouGov survey, 44% of American consumers said that their biggest retail annoyance was stockouts. Self-checkout lines have solidified into something that no one truly enjoys. The DEI rollback, the canceled Pride collection, and the boycotts from both political parties followed. It was no longer evident what Target was.
So, strangely, the cart becomes a useful symbol. It is palpable. If it rolls straight, you can feel it. If the cupholder truly fits your Stanley, you can see it. Retail advisor Dominik Miserandino, who was quoted in TheStreet, cited the broken-windows theory, which states that if you fix the small, obvious issue, people will start treating the entire establishment better. To be honest, we don’t know if that works in a chain of 1,900 stores. However, the theory has the advantage of being easy to accept.
The length of time it took to produce the Series 3 is what makes it intriguing. When Target’s design team first began working with “busy families” in 2020, Fiddelke publicly identified this group as the core of the recovery. deeper seats for kids. a tiny, level area on the handle for a phone and keys. larger bases for purchasing in bulk. modular components that can be changed one at a time instead of discarding the entire cart. It’s not revolutionary at all. All of this suggests that before drawing the next version, someone used one of these things with a toddler.
The more difficult question is whether competitors running completely different plays can compete with this kind of meticulous, patient work. Walmart is favoring defectors with higher incomes and low prices. Customers gladly pay the membership fees that Costco continues to charge. Amazon hardly needs to be mentioned. Target, on the other hand, is attempting to win on feel, or the experience of strolling through a tidy, well-stocked store that is enjoyable to spend an hour in. This targeted approach is superior to attempting to satisfy every customer equally, according to Gartner analyst Halle Stern, who spoke with CX Dive. She could be correct. Additionally, it takes longer to see results, which is dangerous when your stock has already suffered years of losses.
Sales increased 6.7% in the first quarter. After four quarters of declines, comparable sales increased by 5.6%, the fastest growth in four years. Placer.ai reports that since late January, foot traffic has gradually increased. Over the coming years, the new carts will be introduced store by store. As this develops, it’s difficult not to question whether a deeper cupholder and a smoother wheel could actually change the course of a $100 billion retailer. Most likely not by themselves. At least the cart is heading in the correct direction, though.
