• Target just remodeled its SoHo store with a larger emphasis on style and design.
• The store showcases a curated sample from Target's full merchandise assortment.
• Target invited Business Insider for an exclusive first look ahead of the location's reopening.

Target is doubling down on its SoHo concept store.

Less than a year after remodeling the store's main floor, the bullseye retailer went back in to reimagine the rest of the footprint that anchors Target in one of the world's top shopping districts.

"It was probably more of a glorified convenience store," Target's chief brand officer Michelle Mesenberg told Business Insider during an exclusive walkthrough ahead of Thursday's reopening.

Located at the corner of Broadway and East Houston Street, the SoHo store shares the block with trendy shops like Prada, Arc'teryx, and Allsaints. While last year's renovation bumped up the store's aesthetics, Mesenberg said it was still more of a spot for people to grab essentials on their way to somewhere else.

"Nearly 70,000 people cross this corner every single day," she said. "We wanted to make sure that we were putting our best foot forward when it came to our brand."

Last year's remodel featured an extended entrance experience that calls to mind a deconstructed Target logo.

It's now stocked with apparel-forward displays that also feature select merchandise from other categories.

"It's focused on apparel, but you'll see us mix in the best of beauty, the best of home, and so we're really completing the picture for a guest," Target's director of curation, Matthew Arrington, told Business Insider.

Further back on the main floor, a new section features a more immersive presentation of seasonal merchandise.

"What this space does is it puts a point of view on our edit for the season, and that allows people to come in and see our product through a different lens," Mesenberg said.

Last year's remodel of the SoHo store's beauty section also set the tone for this year's broader launch of Target's Beauty Studio, which has replaced the retailer's partnership with Ulta.

"We've been able to also bring in other beauty founders and creators and celebrity makeup artists to the space, and so it gives them a place to continue to tell that beauty story across Target," Arrington said.

Mesenberg said Target sees its stores serving in part as studios for content creators, and no store does it quite like the SoHo store.

"Brands want to be in this location — this is prime real estate," she said.

The newly remodeled lower level features a futuristic discovery section that features trending items across several categories like toys, sports fandom, and gadgets.

"We take a high-curation lens here, based upon what's happening in culture at any given point in time." Mesenberg said.

Imagine distilling an entire aisle from a typical suburban Target store and distilling it into one shelf of the trendiest items — that's the SoHo store's "Explorer's Lab."

The store has to navigate a balancing act to meet the expectations of the various kinds of customers it serves.

From college students at NYU who need dorm snacks, to international tourists who need a new suitcase, to local New Yorkers simply trying to grab a roll of paper towels, the SoHo store still carries the essentials and more.

Almost everything in the SoHo store is also available at Target stores across the US, but the intense focus on curation and fresh features is meant to elevate items that shoppers might not realize are right at their fingertips.

For Arrington, that means making very tough choices about which colors, brands, or pack sizes get display space. Shoppers can still get Target's full selection online or at another store.

Even as Target leans harder into style and design, the SoHo store still aims to deliver on the basics shoppers expect when they walk in the door.

"People still want their Tide pens. Tide pens are one of the top sellers in the store. Bananas are one of the top sellers in the store. We have a very big, bold, proud assortment of both," Mesenberg said.

It's an approach that yields interesting outcomes on the shelves. Established national brands shoppers expect are next to emerging ones they might have heard about on TikTok.

"When we have a founder-led or celebrity-led or creator-led brand that we want to celebrate, this becomes a destination for them," Arrington said.

Mesenberg said that while brand awareness for Target is a particular focus of the SoHo store, that's not at the expense of going after strong sales.

The SoHo store is and will remain a "one of one" format for Target, Mesenberg said, but it is playing a growing role in the company's overall strategy.

"We're pulling elements of what we're learning here. It may not translate exactly one for one, but the influence is coming into the chain," she said.

Correction: October 22, 2026 — An earlier version of this story misspelled Michelle Mesenberg's last name.

• SpaceX's earnings reveal growing capex as well as AI revenue that surpassed its Starlink business for the first time.
• The company reported overall capex spending in line with estimates. It projected it could double in the current quarter.
• AI-related spending was slightly less than expected but still more than previous quarters.

SpaceX's second-ever earnings report revealed it's spending more than ever on AI — and that could soon double.

SpaceX reported spending $16.4 billion on AI-related capex in the third quarter, continuing the acceleration of AI spending seen in recent quarters.

SpaceX spent roughly $19.6 billion on overall capital expenditures in the third quarter as Grok maker continues its AI buildout. That was squarely in line with what Wall Street analysts were expecting.

Of that $19.6 billion, SpaceX reported spending $16.4 billion on AI-related capex. Analysts were expecting $16.9 billion.

SpaceX expects capex to balloon in the current quarter, with CFO Bret Johnsen forecasting $35-$40 billion due to new compute coming online. Johnsen also said SpaceX expects to quickly see returns on its investments.

"At current pricing, new compute deployments are generating a payback of less than a year," he said.

SpaceX's stock was trading up 4% after hours following the results. The company is broadcasting the earnings call on X, becoming one of a small list of companies to broadcast video of the gathering.

During the earnings call, SpaceX CEO Elon Musk said that chips are no longer the biggest constraint to AI buildout.

"So talking about SpaceX superintelligence, SpaceXSI — "sexy," whatever — so as I think people are starting to realize the constraints on deployment of superintelligence is more in power and cooling and infrastructure than it is in chips," he said.

SpaceX's AI revenue grew significantly quarter-over-quarter to $7.6 billion — ahead of analysts' estimates of $6.3 billion. This report also marks the first quarter since SpaceX purchased Cursor.

That revenue means that SpaceX's AI segment officially brought in more revenue than its Starlink business. Starlink brought in $5.2 billion for the quarter.

SpaceXAI has since rebranded as SpaceXSI, following Musk's alignment with President Donald Trump's preferred rebranding of "artificial intelligence" to "super intelligence."

One area where SpaceXSI has found some success is leasing its compute to Anthropic, Google, and Reflection AI. During the company's last earnings call, SpaceX CFO Bret Johnsen said the leasing arrangements had generated $1.6 billion in additional revenue.

Musk said that SpaceX is being inundated with lease requests.

"We are also frankly hounded relentlessly by every hyperscaler and by dozens of smaller companies to rent more of our compute," he said. "So we could rent out our compute several times over if we said yes to everyone."

Overall, he said the allocation for SpaceX compute is something "that's going to change from one month to the next."

"I guess as a rough approximation, our goal is to kind of split it 50/50 more or less, where half of the compute is used internally, and half of it is rented to others," he said. "But that number could shift 60/40 one way or the other."

Correction: Tuesday, October 20, 2026 — An earlier version of this story incorrectly included two values for SpaceX's overall capex. The correct value is $19.6 billion.