Michael Fiddelke, Target’s chief operating officer and former finance chief, will take the chief executive role starting Feb. 1 of next year, the retailer announced Wednesday (Aug. 20).
He replaces Brian Cornell, who will become executive chair of Target’s board. The transition comes as the company continues to struggle with declining sales.
“It is clear that Michael is the right leader to return Target to growth, refocus and accelerate the company’s strategy, and reestablish Target’s position as a leader in the highly dynamic and fast-moving retail environment,” Christine Leahy, lead independent director of Target’s board, said in a news release.
“Michael’s tenure gives him unmatched enterprise insight and a base of strong team trust. But what sets him apart is how he combines those strengths with a ‘fresh eyes’ mindset, challenging the status quo to evolve how the business operates, differentiates and delivers long-term value.”
Fiddelke, who has been with Target for 20 years, told reporters following the announcement that he is “stepping in with urgency to rebuild momentum and return to profitable growth.”
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Per a report from CNBC, the new CEO outlined three goals: reaffirming the company’s reputation as a place to get stylist, unique items, offering a more consistent shopping experience and using technology to drive efficiency.
“We’ve built a solid foundation, and we’re proud of the many ways that Target is unique in American retail,” he said. “We also have real work in front of us.”
Target on Wednesday released quarterly earnings showing a 0.9% dip in net sales compared to the same quarter in 2024, with the company continuing to forecast a “low-single digit decline” in sales for the fiscal year.
Sales were up nearly 2% over the first quarter, with Target touting signs of improvement in traffic and digital comparable sales. That latter category was up 4.3%, a reflection of more than 25% growth in same-day delivery, the company said.
Company executives have attributed the decrease in sales to declining consumer confidence, uncertainty around the effect of tariffs and ongoing downturn in discretionary spending.
Cornell and other retail CEOs met with President Donald Trump in April to warn that it would be difficult not to raise prices amid continuing tariffs, and that some products could become scarce if retailers decided not to sell them due to tariff costs.
