The news: Target’s protracted slump is hurting employee morale as workers worry the retailer is falling behind.

• Roughly half of respondents to a companywide survey don’t think Target is making necessary changes to compete effectively, The Wall Street Journal reported.
• 40% said they lack confidence in the retailer’s future.

The problem: The desirability of Target’s wares has waned as more companies copy its private-label strategy and make a more compelling case to price-conscious shoppers.

• The retailer is struggling to convince consumers of its value proposition: Shoppers perceive its prices to be higher than some competitors, executives told The Journal, despite efforts to lower prices on thousands of items.
• That makes Target’s decision to end its policy of matching prices at Amazon and Walmart especially perplexing—and a clear sign that the retailer is flailing for a strategy that will lift it out of its malaise.

Target is also grappling with the fallout from its diversity, equity, and inclusion policy rollbacks—which, along with a series of lackluster private-label partnerships, have considerably diminished the “Tarzhay” magic.

Our take: After 10 quarters of flat or declining sales, Target is in dire need of a shakeup. Much will depend on CEO Brian Cornell’s successor—and whether that leader comes from within its ranks or brings an outside perspective. Whoever assumes the role will need to take a fresh look at the company’s approach to merchandising and find more effective ways to communicate its value to shoppers.