Target just promoted an insider to CEO, tasking him with turning the company around amid decreasing sales and foot traffic.
Target announced on Wednesday that its Chief Operating Officer (COO), Michael Fiddelke, will assume the position of Chief Executive Officer (CEO) in February 2026. The company’s current CEO, Brian Cornell, who has been in the role for 11 years, will retire that month.
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“There is no one better suited to move Target forward than Michael Fiddelke,” Cornell stated in a news release. “He brings a remarkable level of resolve in the face of complex challenges, a deep passion for growth, and a natural ability to inspire those around him to define what’s next.”
According to Business Insider, Target has reported drops in comparable sales, or sales from stores and digital channels, for six of the past nine quarters. On Wednesday, Target stated that comparable sales declined by 1.9% in its most recent quarter ending July 31.
Target’s new CEO, Michael Fiddelke. Photo by Elizabeth Flores/The Minnesota Star Tribune via Getty Images
Foot traffic to Target stores has also dropped, decreasing 3.9% year-over-year in June. And Target’s stock is down over 28% year-to-date, with the company’s market value hovering around $44.6 billion at the time of writing.
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Fiddelke joined Target in 2003 as an intern and has been with the company ever since, according to his bio on Target’s corporate website. As COO, he led investments to build and grow stores and the company’s digital footprint.
Fiddelke’s turnaround plan for Target
During Target’s quarterly earnings call on Wednesday, Fiddelke acknowledged that the company was “not realizing our full potential right now” and stated that he was assuming the CEO role “with a clear and urgent commitment” to “get back to profitable growth” and “build new momentum.”
On the call, Fiddelke outlined a three-part plan for Target to reclaim profitable growth.
First, he said that Target had to “reestablish” its merchandising presence through unique products in categories like apparel, home, and food and beverage. Fiddelke emphasized that the company had a $31 billion private label portfolio, stating that the portfolio of brands could be a way to bring newness to store shelves.
“We need to reclaim that merchandising authority,” Fiddelke said on the earnings call.
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Second, Fiddelke wants customers to “find a sense of joy” every time they step into Target. He tasked the company with delivering “an elevated experience” with well-stocked shelves and clean stores.
“We have to do better here, especially in the consistency of our experience,” Fiddelke stated on the call.
Finally, Fiddelke said Target should tap into technology and AI to allow the team to move faster and accurately forecast sales, which will make its business and guest experience more efficient.
“Our performance over the last few years has not been acceptable,” Fiddelke said on the call, adding, “We have real work in front of us.”
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