Target names insider Michael Fiddelke as next CEO as Brian Cornell steps down
The leadership change comes as the retailer struggles with declining sales, consumer boycotts, and intensifying competition from Walmart and discount chains.
Fiddelke, currently Target's chief operating officer, has been with the Minneapolis-based company for two decades. He is credited with modernizing Target's supply chain, expanding digital services, and improving operational efficiency. In May, he was tapped to lead a new office focused on faster decision-making to accelerate growth.
The incoming CEO outlined three immediate priorities: restoring Target's merchandising authority, improving the in-store shopping experience by keeping shelves stocked and stores clean, and investing in technology to strengthen both physical and digital operations.
Cornell, 66, has led Target since 2014, steering the company through a major data breach, a store-brand revitalization, and the pandemic-era surge in sales. While he repositioned Target as a style-driven retailer and expanded same-day fulfillment through the Shipt acquisition, sales momentum has faded in recent years. Comparable sales have now declined or remained flat in eight of the last ten quarters.
Industry analysts expressed mixed reactions to the internal appointment. While some praised Fiddelke's track record, others said hiring from within risks perpetuating 'entrenched groupthink' that may not address deeper strategic challenges.
Target reported a 21% drop in net income in its latest quarter, with a 1.9% decline in comparable sales. Analysts note the brand has lost traction with higher-income shoppers, while Walmart and TJ Maxx gain ground.
Cornell will transition to executive chair of the board as Fiddelke takes over, tasked with reviving Target's 'Tarzhay' reputation for affordable style.
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