Target was once widely considered one of America’s leading destinations for affordable style at scale, helping popularize designer collaborations in mass retail and making trend-driven products more accessible to mainstream shoppers.
By combining affordability with exclusive partnerships, the retailer built a distinct identity and strengthened long-term customer loyalty.
But in recent years, Target’s position in fashion and discretionary retail has come under pressure as softer sales, declining store traffic, and shifting consumer behavior challenged its ability to stand out in an increasingly competitive market.
Company leadership has acknowledged that the retailer is still working to rebuild momentum.
During a late-2025 earnings call, Target CEO Michael Fiddelke said the company was operating with renewed “urgency” and remained “far from satisfied” with recent performance, adding that leadership would continue investing until Target reaches its full potential.
Now, the retailer is returning to a familiar playbook, leaning again on the design partnership that once helped define its brand and fueled its growth.
Target brings back Isaac Mizrahi partnership
Target (TGT) is bringing back designer Isaac Mizrahi by appointing him as the company’s first-ever Creative Director at Large, reviving a partnership that began more than two decades ago.
In the newly created position, Mizrahi will serve as a creative advisor to Target’s internal design teams, mentor emerging talent, and help guide future product concepts through design innovation, trend forecasting, and merchandise strategy.
“Isaac has always believed, as we do, that great design should be accessible to everyone,” said Target Executive VP & Chief Merchandising Officer Cara Sylvester in the company announcement. “What excites me most is the opportunity to pair his creativity and perspective with the incredible talent we already have inside Target as we shape the next chapter of style and design for our guests.”
Mizrahi first partnered with Target in 2003 through the launch of the Isaac Mizrahi for Target collection, one of the retailer’s earliest and most influential designer collaborations. The relationship ended in 2008 after Mizrahi became creative director at Liz Claiborne, The New York Times reported.
The move reflects a broader effort to strengthen brand differentiation through design and exclusive products, as retailers compete more aggressively for consumer attention.
Fashion collaborations helped define Target’s brand
Target’s early collaborations helped establish a model that later became common across mass retail.
After the success of the Mizrahi collection, the company expanded into limited-edition releases and partnerships with major fashion names, including Diane von Furstenberg, Missoni, Jason Wu, Zac Posen, Lilly Pulitzer, and Altuzarra.
At the same time, Target invested heavily in owned and exclusive brands, which have become an increasingly important contributor to performance.
According to the company, its portfolio of more than 40 owned brands generates over $30 billion in annual sales and represents nearly one-third of total revenue.
Leadership has emphasized returning to Target’s core identity by combining style, affordability, convenience, and a consistent customer experience across stores and digital channels.
That strategy now extends beyond merchandising.
Target’s merchandise teams have traveled globally for inspiration while integrating AI-powered tools, including Target Trend Brain, to accelerate product development and identify emerging consumer trends more quickly, according to comments by Fiddelke in a CNBC interview.
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Early performance suggests the strategy is gaining traction
Target’s renewed focus on merchandising and customer experience has shown early signs of traction.
During the first quarter of fiscal 2026, the company reported:
- Net sales increased 6.7% year over year
- Comparable sales rose 5.6%
- Growth across all six core merchandising categories
- Apparel & Accessories ranking as the third-fastest-growing category
- Comparable traffic climbed 4.4% across stores and digital channels
In the company’s latest earnings call, Fiddelke said Target is focused on building sustainable growth rather than pursuing short-term performance gains.
“We’re writing a new chapter for Target, defined by disciplined choices and a clear articulation of our unique role in retail,” said Fiddelke.
Fashion and other discretionary categories typically carry stronger margins than many essential goods, making product differentiation increasingly important as retailers seek to improve profitability while maintaining customer loyalty.
Even so, management is still cautious. Consumer sentiment remains uneven amid broader economic uncertainty, and Target has emphasized maintaining operational flexibility rather than accelerating expansion too quickly despite signs of improvement.
Competitors have expanded their own fashion strategies
Target was among the retailers that helped popularize designer collaborations and exclusive collections across mass retail.
Walmart (WMT), one of Target’s biggest rivals, appointed designer Brandon Maxwell as creative director for two of its in-house brands in 2021 and later debuted its first ready-to-wear collection during New York Fashion Week for spring 2025.
The company has also expanded its fashion assortment with nationally recognized labels and private brands across men’s, women’s, and children’s categories.
In retail, exclusive products and design differentiation are becoming increasingly important as companies compete for customer attention and higher-value discretionary spending.
Why designer partnerships still matter in retail
Target’s latest move reflects broader changes happening across the global fashion industry.
According to McKinsey & Company’s State of Fashion 2026 report, industry growth is expected to remain in the low single digits as brands navigate macroeconomic volatility, tariff pressures, and more cautious consumer spending.
In this environment, brand recognition alone is no longer enough to sustain growth.
Retailers are increasingly using partnerships and exclusive collaborations to create cultural relevance, generate consumer excitement, attract new audiences, and strengthen differentiation in crowded categories.
Here’s some of my previous coverage on fashion collaborations:
- Nordstrom brings back fashion brand after 25-year U.S. shutdown
- Aritzia brings back iconic fashion brand after shutdown
- H&M brings back popular designer collab after 20 years
Higher-income consumers remain an especially valuable audience because they tend to maintain discretionary spending during periods of economic uncertainty and often contribute disproportionately to margin growth.
Still, the strategy requires balance. Expanding further into premium fashion categories may strengthen Target’s style credentials, but the company must avoid weakening the value proposition that has historically defined its relationship with shoppers.
Whether Isaac Mizrahi’s return becomes a turning point remains to be seen, but the move represents one of Target’s clearest signals that design, exclusivity, and brand identity are once again becoming central to its long-term growth strategy.
Related: One of the world’s largest fashion retailers closes 106 stores
