Target’s annual home business dropped by $1 billion in 2025

Minneapolis – Target hasn’t generated year-over-year growth in its home segment since 2021. Since then, the company has seen $4.6 billion in sales migrate elsewhere.

In 2025, the company’s annual home sales fell by $1.09 billion, or 6.5%, ringing in at $15.6 billion, according to Target’s recently filed 10Q report. It was the third year in a row that the company saw more than $1 billion in home sales evaporate.

Categories included under the home segment in the breakout data comprise bedding and bath, home decor, furniture, kitchenware, lighting, school/office supplies, storage, small appliances, greeting cards, party supplies, home improvement, and seasonal merchandise.

The company’s home sales peaked in 2021 at $20.3 billion before beginning a steady slide. In one bright spot, 2025 home sales were still running ahead of pre-pandemic levels; in 2019, Target’s home sales were $14.3 billion.

During the retailer‘s annual investor meeting last week, EVP and chief merchandising officer Cara Sylvester said Target is moving category by category to boost its style quotient and value proposition in home.

In the home textiles realm, Target remains the third largest seller of soft home goods with annual sales of more than $4 billion. Only Amazon ($4.5 billion) and Target ($8.1 billion) do a larger business, according to HTT’s Retail Giants report covering 2024 sales volumes.

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The retailer plans to streamline its private label home brands to put a major focus on Threshold, its most productive label in the segment. This summer, the company will relaunch the Threshold brand, giving it sharper curation and clearer storytelling. Target will also roll out  a Threshold brand space in more than 200 stores.

In addition, work to refresh and reposition the classification home businesses is underway.

By June, Target will have overhauled 75% of its decorative accessories, which include everything from candles to throws. By fall, Target will have made significant changes to the bedding category.

“We’re leaning full in on furniture, mattresses and rugs,” said Sylvester, adding that the company is doing so with an eye to enhancing aesthetics while also balancing its inventory exposure.