CoStar News: Target to boost store investments; Intuit plans job cuts; Lowe’s gains sales despite housing pressures

Target to boost store investments:

Retailer Target is planning to increase investments in store and supply chain upgrades after posting a 5.6% annual increase in same-store sales and a 6% rise in total sales in the first quarter. It marked the first same-store sales increase in five quarters for the Minneapolis-based operator of more than 2,000 stores.

The company on Wednesday credited factors including competitive discounting that helped it boost sales in all six of its core merchandising categories. Total first-quarter revenue topped $25 billion, with notable sales growth in areas like health and wellness, toys, and products geared to babies.

“We’re maintaining a cautious outlook given the work we know we have in front of us and ongoing uncertainty in the macroeconomic environment,” Target CEO Michael Fiddelke said during a quarterly earnings call Wednesday.

Target executives reiterated plans to increase full-year capital spending to about $5 billion, up $1 billion from 2025, with an emphasis on improving fulfillment systems, upgrading store layouts and enhancing its grocery sections, among other priorities.

Target opened seven stores during the first quarter and has more than 100 remodeling projects underway, company executives said. The retailer previously announced plans to open more than 30 stores during 2026 and remodel more than 130 existing locations.

Intuit plans job cuts:

Software provider Intuit told its employees Wednesday that it plans to reduce its global workforce by 17%, affecting around 3,000 employees. The maker of TurboTax and QuickBooks is joining firms in technology and other industries now recalibrating resources to meet rising demand for artificial intelligence services.

Intuit CEO Sasan Goodarzi said the company is making changes to stay competitive, as its own customers seek out financial products and services deploying the latest technologies. “We have already built the foundation; now we must accelerate delivering undisputed customer benefits with an unmatched combination of data, AI and human expertise,” Goodarzi said in a company blog post.

Mountain View, California-based Intuit is reducing layers of management and colocating teams within “strategic hubs,” with plans to eventually close regional offices in Reno, Nevada; and Woodland Hills, California, near Los Angeles, Goodarzi said. It will also reduce its presence in other locations that were not specified.

Intuit employs about 18,000 at nearly 70 locations worldwide, according to company filings and CoStar data.

Lowe’s gains sales despite housing pressures:

Home improvement retailer Lowe’s posted a 10% annual sales increase in its first quarter at a time when home sales remain sluggish and cost-conscious consumers are holding back on some do-it-yourself projects.

CEO Marvin Ellison told analysts during a Wednesday earnings call that the housing market remains the toughest since the 2008 financial crisis as its customers deal with elevated interest rates and high costs for gas and other items. But he said higher-income customers are still spending on home projects.

The Mooresville, North Carolina-based operator of more than 1,700 stores posted $23 billion in total revenue in the first quarter and reiterated a prior full-year sales projection of between $92 billion and $94 billion.

Lowe’s executives cited dynamics similar to those of rival Home Depot, which this week reported a nearly 5% annual rise in sales despite a challenging housing market.

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By Lou Hirsh

CoStar News

May 20, 2026