Target announced Wednesday morning that it has named company veteran Michael Fiddelke as its next chief executive officer, a critical appointment as the retailer battles to reverse a prolonged sales slump and win back investor confidence.
Fiddelke, the company’s 49-year-old chief operating officer and former chief financial officer, will succeed Brian Cornell effective February 1. Cornell, who has been CEO since 2014, will transition to the role of executive chair of the board.
The leadership change was announced alongside Target’s second-quarter earnings report, where it beat Wall Street expectations but maintained a grim full-year forecast that projects another annual sales decline.
A Mandate to Reverse the Slump
Fiddelke takes the helm at a pivotal moment for the Minneapolis-based retailer. After a surge during the pandemic, Target’s growth has stalled, with annual sales remaining roughly flat for the past four years. The company’s stock has fallen approximately 60% from its all-time high in 2021.
On a call with reporters, Fiddelke said he is “stepping in with urgency to rebuild momentum and return to profitable growth.”
He outlined three key priorities:
- Re-establishing Target’s reputation for stylish and unique merchandise.
- Providing a more consistent and enjoyable customer experience.
- Leveraging technology to improve business efficiency.
An Internal Choice Amid Calls for Change
The selection of a longtime insider may come as a surprise to Wall Street. A recent survey of investors found that 96% favored an external hire to bring a fresh perspective to the company’s challenges.
Target’s board said it conducted an “extensive external search” over several years before choosing Fiddelke, citing his “unmatched enterprise insight.”
When asked about investors who wanted an outsider, Fiddelke addressed the issue directly.
“I understand this business,” he said. “I understand what makes Target distinctly unique. And I’ve seen us at our best, and I’ve seen us when we’re not at our best, and that informs my candid assessment today of where we have work to do as well… My number one goal is to get us back to growth.”
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