CEO of Target set to resign in February amidst slump in sales
Target, the popular American retailer, has announced that Michael Fiddelke, the company's Chief Operating Officer, will take over as CEO following the departure of Brian Cornell on February 1. Fiddelke, a 20-year company veteran, brings a wealth of experience having risen through the ranks from intern to COO.
Cornell, who joined Target in 2014, has been instrumental in reenergizing sales and repositioning Target's stores as delivery hubs. Under his leadership, Target's stores were tailored to better fit local communities, and the company's store brands were given a focus. This strategy helped Target weather the coronavirus pandemic, which led to outsized sales for retailers, but eventually saw spending sprees subside.
However, Target's sales have been struggling, with the company losing market share to rivals like Walmart. The company's comparable sales declined for the first time in six years in July 2023 due to shoppers feeling the pinch of inflation. Target's sales in Q2 2025 showed a slight decline, with net sales of $25.2 billion, down 0.9% compared to the same quarter in 2024. Earnings per share also fell to $2.05 from $2.57 in 2024.
Fiddelke's immediate priorities involve improving inventory management, streamlining the supply chain, and re-establishing Target’s brand identity emphasizing "affordable but stylish" merchandise. He aims to improve well-stocked shelves, the in-store experience, and counteract impacts from consumer boycotts and tariffs.
In the longer term, Fiddelke plans to advance Target’s omnichannel retail capabilities by investing in e-commerce, same-day delivery (e.g., Shipt), store remodels, and technology to create a seamless shopping experience that integrates digital and physical retail. His leadership focuses on operational efficiency—with a goal of over $2 billion in savings—to reverse sales slumps, regain market share, and boost profitability while adapting to intense competition and economic headwinds.
Challenges remain significant: Target’s recent sales declines and profit drops reflect ongoing consumer caution amid inflation, and analysts emphasize that regaining market credibility and customer loyalty will be critical to Fiddelke's success. His insider status provides institutional knowledge but also raises expectations for innovative and effective strategic shifts.
In summary, Target is navigating a sales slowdown with mixed financial results, appointing Michael Fiddelke as CEO to spearhead improvements in operational efficiency, inventory, brand repositioning, and omnichannel growth to stabilize and revitalize the company’s performance moving forward.
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