In the back of Target’s stores, the retailer is giving an overhaul to a department that’s typically known for selling consumer electronics, toys and books.

Instead of calling it the traditional name, hardlines, Target coined the category Fun101.

Cassandra Jones, senior vice president of merchandising for Fun101, said the goal went beyond the new name, however. Target wanted to turn around a category that was falling flat.

Starting in late 2024, Target has had a tighter focus on four key areas: play, which includes toys like plush stuffed animals and popular brands like Lego; pop, which includes culturally inspired items like a limited-edition collection tied to Netflix’s “Stranger Things” and another linked to the 30th anniversary of the movie “Space Jam”; sport, which includes items like water bottles and licensed sports apparel for professional teams; and gadget, which includes trendy takes on products like phone cases and headphones.

On the other hand, Jones said Target has cut back on items like TVs and laptops, where it’s harder to stand out from retail competitors or inject a sense of style.

Sales of Fun101 merchandise were roughly flat year over year in the most recent fiscal year, but drove $15.8 billion, or 15%, of Target’s net sales for the period.

Jones said shoppers will see the category go bigger in the second half of the year. Target plans to open a fan shop in stores and online with licensed sports gear, expand its position as a “trading card destination” and open a “collectibles zone” for other types of merchandise.

Another well-known category in Target stores has become a weaker link, too. Apparel and accessories sales at the company fell to $15.74 billion in the most recent fiscal year, down about 5% from the prior year.

To drive sales growth again, the big-box retailer aims to spot trends earlier, speed up the time it takes for new looks to hit shelves and sharpen the selection of clothing that it carries — even for basics like tank tops, said Gena Fox, senior vice president of apparel and accessories at Target.

She said the company’s performance “has not been where we want it to be over the past year.”

Denim, T-shirts and tanks make up about 25% of Target’s total assortment, Fox said. Last year, it overhauled its denim to raise the quality and style, which led to a 10% year-over-year lift in sales for that category.

This year, she said, Target plans to take that same approach to fix T-shirts and tanks, which have had weaker sales. Some of those refreshed closet staples are starting to hit store shelves and Target’s website.

Target is also working to get ahead of trends, which it features in collections in stores and online, she said. To spot trends, it’s using a new artificial intelligence-powered tool called Target Trend Brain, which helps the company’s designers and merchants identify the styles, colors and materials that customers may want.

For example, insights from Trend Brain helped inspire a Western edit of clothing and accessories like purses with fringe and belts with embroidery, with all items under $40. That area will soon rotate to a collaboration with Roller Rabbit, a colorful and brightly patterned pajama brand, that will include swimwear, sundresses and pool accessories.

Fox said the apparel and accessories timeline is now about 40% faster as the company reacts more in the moment rather than planning six to 12 months in advance.

Along with those trend-driven items, Target will expand national brands and add new partnerships. Last week, the company announced it would bring Levi’s to more stores, which will mean the denim brand is in more than 1,000 — or roughly half — of its stores, Fox said. It also developed an exclusive clothing line with country music singer Megan Moroney, which will coincide with her upcoming tour.

Disney is no stranger to the Asian market. It already has a strong footprint of theme parks and resorts in Tokyo, Hong Kong and Shanghai.

“We have a really strong presence already up in the the northern part of Asia,” Schott said. “But, I think as you think about the southeast part of Asia, we don’t really have a physical presence. So, this is a great way to really be able to connect a whole lot of people that haven’t had the opportunity to do a physical Disney experience before.”

The cruise industry, in particular, in Asia has been in a state of rapid growth in the wake of the pandemic. In 2024, the region accounted for 2.6 million cruise passengers, a 13% increase from the previous year, according to data from the Cruise Lines International Association.

“Prior to 2024 we were really seeing a rise in the disposable income and the income levels of Southeast Asian travelers,” said Dulani Porter, executive vice president and partner at Spark, a creative agency that works with hospitality and tourism brands. “And so it was a very, very important market for any international tourism organization.”

That’s where the Disney Adventure comes in.

Initially destined to be a floating casino, the ship went up for sale part way through its construction when its parent company, Genting Hong Kong, went bankrupt in 2022. Disney swooped in and bought it.

“I think this was a great opportunity, because if we hadn’t acquired the ship the way we did, we wouldn’t be going into this market as soon as we are,” said Bruce Vaughn, president and chief creative officer of Walt Disney Imagineering. “And that’s a great thing.”

Previously, all of Disney’s cruise ships have left from domestic ports in Florida before traveling to international destinations. In the case of the Adventure, the ship is the destination. Stationed in Singapore, the vessel will voyage entirely at sea, with no port calls.

And Disney says demand is already there. Disney’s cruises are already 80% booked for fiscal 2026, Schott said.

The Disney Adventure’s size isn’t the only thing that sets it apart from the rest of the fleet. The ship has been tailored for consumers in Asia.

“Since the ship is going to be dedicated to Singapore and that market, we also wanted to make sure that we address what we thought would be unique to them,” said Vaughn.

This came in the form of selecting franchises and characters that are popular in the region, designing entertainment and relaxation areas catered to local tastes and providing a diverse selection of menus across its restaurants.

“We’re looking forward to servicing a brand-new audience,” Schott said. “In that respect, the ship is a brand ambassador.”

Guests on board the Adventure will be immersed in Disney’s more than 100 years of storytelling with character meet-and-greets as well as themed shopping and entertainment areas.

Situated in the middle of the ship is a deck designed to look like a street from San Fransokyo, the fictional city in “Big Hero 6.” The area is home to arcade games inspired by the movie, a replica of the Lucky Cat Cafe owned and operated by Aunt Cass as well as four movie theaters and dedicated tween and teen spaces.

The street also features the first-ever Duffy and Friends store at sea and a National Geographic shop. Disney executives told CNBC that these brands are incredibly popular with consumers in the region.

Duffy the Disney Bear is a character that was developed initially for a merchandise line at Walt Disney World’s Disney Springs, but gained attention when it was brought to Tokyo a few years later. In the last two decades, Duffy has been joined by seven other stuffed animal friends and has become one of the bestselling merchandise lines for the company.

In 2023, Disney reported the character generated $500 million in sales annually.

In designing the Disney Adventure, the company was also conscious of local traditions. For many in Asia, vacations aren’t just for a nuclear family, but for extended family and even large groups of friends.

“I think one of the biggest distinctions that I’m seeing with South Asian cultures [is] travel really is about spending more time together,” Porter said. “Not to generalize, but North American cruisers will choose cruising because the kids can go do their thing and the parents can go do their thing, all contained into a ship.

“For Asian travelers, that is a very meaningful time spent together, where the grandparents and the kids and the parents and the grandparents, everybody is really trying to maximize all of that time together,” she said.

Both Vaughn and Schott detailed layers of experiences available to cruise guests that cater to different age ranges, both kids and kids at heart.

There’s Marvel Landing on the upper deck of the ship that features a rollercoaster, a spinning attraction and car-chase ride all inspired by The Avengers. In the same area is a sundeck, infinity pool and a bar.

Wayfinder Bay is an open-air area with amphitheater-like seating that doubles as a performance venue. And there’s D Lounge, which features a number of private karaoke rooms.

“We’ve had to think about that quite extensively in our parks in the region … multigenerational travel is just part of the formula,” said Schott.

Also part of the formula is Disney’s dining experience.

Aboard the Disney Adventure, guests will have an eclectic selection of food and beverages to try, with an emphasis on flavors that are popular in the region.

The Disney Adventure will have burgers and classic American fare at Stitch’s Ohana Grill, bubble teas at the Ursula-inspired Bewitching Boba and Brews, as well as pitas and kebabs at the Ms. Marvel-inspired Cosmic Kebabs.

There will also be Indian cuisine at Mowgli’s Eatery and Polynesian-inspired fare at Gramma Tala’s Kitchen.

Rotational dining is also featured on the cruise ship, a staple of Disney’s service.

While passengers have the option to grab quick-service meals and snacks throughout the ship, several of its restaurants are included in a prescheduled dining plan. Guests have reservations for each of these themed restaurants and rotate through them during their cruise.

Disney rotates the restaurant staff, too, to follow each group of passengers to their scheduled restaurant. As a result, guests have the same servers, busboys and restaurant managers throughout their trip, and the waitstaff gets to know the guests — and their preferences.

“I think at the end of the day, this entry into the market needs to be a really strong one for us,” Schott said. “So we’re looking forward to really being able to deliver the Disney-level of service at an extraordinary level.”