Target’s home division posted its third straight annual sales decline of more than $1 billion, with revenue down $1.09 billion, or 6.5%, to $15.6 billion, according to the retailer’s 10-Q. Home sales have not grown year on year since 2021, when the unit peaked at $20.3 billion; cumulative losses to other channels since then total $4.6 billion, though 2025 still exceeded the 2019 pre-pandemic level of $14.3 billion.
At its investor meeting, chief merchandising officer Cara Sylvester said the company is upgrading style and value category by category, narrowing owned home brands toward Threshold, its most productive label. Threshold will be relaunched this summer with a tighter edit and clearer brand story, backed by store-in-stores in more than 200 locations. By June, Target will have refreshed about 75% of decor accessories, with a major bedding reset in autumn and explicit investment in furniture, mattresses and rugs.
Why it matters for the pet industry
Target’s home troubles and its Threshold-centric fix land squarely on the pet hard-goods aisle. Pet beds, crate furniture, litter cabinets and feeding stations share the home floor and the home-refresh shopper with Threshold’s relaunched ranges, so a sharper, better-funded private label raises the hurdle for pet vendors to keep space. The explicit furniture, mattress and rug push also pulls traffic and square footage away from pet furnishings. Pet brands must bring differentiated design and demonstrable margin to Target’s reset, or cede the refreshed home aisle to the retailer’s own labels while defending pet staples elsewhere.
What to watch
- Threshold relaunch should span more than 200 store-in-stores as Target resets its home aisle.
- Pet furniture and bedding SKUs face editing in the autumn home reset under Sylvester’s plan.
- Full-year home sales will show whether the 2025 decline of $1.09 billion has bottomed.
FAQ
How much did Target’s home sales fall in 2025?
Target’s home division posted its third consecutive annual sales decline, with revenue down $1.09 billion, or 6.5%, to $15.6 billion according to the retailer’s 10-Q. Home sales have not grown year on year since peaking at $20.3 billion in 2021, though 2025 still exceeded the 2019 pre-pandemic level of $14.3 billion.
How does Threshold affect pet hard goods shelf space?
Target’s Threshold-centric reset lands directly on the pet hard-goods aisle, where pet beds, crate furniture and feeding stations share floor space with relaunched home ranges. A sharper, better-funded private label raises the hurdle for pet vendors to retain space, while the furniture and rug push pulls traffic away from pet furnishings, forcing differentiation.
Will Target’s 2026 home reset bottom the sales decline?
Target will have refreshed about 75% of decor accessories by June, with a major bedding reset in autumn and explicit investment in furniture, mattresses and rugs. Full-year home sales will reveal whether the $1.09 billion 2025 decline has bottomed, while more than 200 Threshold store-in-stores test whether the private label can reclaim lost share.
Source intelligence adapted for the GlobalPetIndex pet-industry audience. Original publication: external brief.
