This article about Target cutting it's innovation efforts is an informative read. They are opting instead to focus on it's core offerings. It appears that the store's efforts to expand into Amazon-like e-commerce and a new type of store model featuring robots were specific targets of the cuts.
However, Target is going to continue to spend money on using "innovation to fuel growth in digital, technology, supply chain and merchandising."
This shift represents an effort to focus on their internal network, or the digital and physical connections that tie the parts and pieces of their business together. It appears as a smart investment of time and resources rather than chasing down the next greatest thing or trying to keep up with what other businesses are doing.
Lasting innovation will derive from this internal look at their own processes.
Additional articles on innovation at Target: