The Board of Directors of Target Corporation announced the appointment of Michael Fiddelke as the company’s new Chief Executive Officer (CEO), a position he will officially assume on February 1, 2026. The decision was made unanimously and marks a leadership transition following the departure of Brian Cornell, who will become chairman of the board.
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Fiddelke, currently Chief Operating Officer (COO), has more than 20 years of experience at the company and has held key positions in finance, operations, human resources, and merchandising. Previously, he served as Chief Financial Officer (CFO) and led strategic projects to modernize stores, develop digital capabilities, and expand the supply chain network.
“It’s clear that Michael is the ideal leader to drive Target’s growth, refocus and accelerate the company’s strategy, and solidify its leadership in a highly dynamic and constantly evolving retail environment,” said Christine Leahy, lead independent director of the board.
In his first public statement following the announcement, Fiddelke affirmed: “I’m stepping into the role with a deep commitment to driving growth and delivering stronger performance.”
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Target shares fall after the announcement of the new CEO
Despite his long-standing career within the company, the market’s reaction to Michael Fiddelke’s appointment was negative. Target’s (TGT.N) shares dropped more than 7% on the day of the announcement. According to financial analysts, investors were expecting an external leader who could represent a more significant shift in direction, given the operational and commercial challenges the retail chain is facing.
Over the past five years, Target’s stock performance has been weak: its shares have declined 23%, in contrast with Walmart, which has risen 125%, and Costco, which has more than tripled in value over the same period.
What challenges will Michael Fiddelke face at the head of Target?
The appointment comes amid a challenging environment for the company. In its second fiscal quarter, covering May through July, Target reported a 21.5% drop in net income, reaching $935 million. Net sales also fell by 0.9%, totaling $25.21 billion.
The company stated that, despite the challenges, there were positive signs such as improved store traffic and more efficient cost management. “Our second quarter results showed encouraging signs of recovery […] in a complex retail environment,” said current CEO Brian Cornell.
Over the past year, the company has seen a decline in demand for discretionary items like apparel and electronics, along with pressure from inflation-sensitive consumers. Additionally, it has faced criticism after scaling back its diversity, equity, and inclusion (DEI) policies, upsetting some loyal segments of its customer base.
Fiddelke’s strategy: more technology, better value, and consistent experience
Fiddelke has outlined three priority areas for his leadership: enhancing the quality of Target’s product offerings in terms of value and style, delivering a more consistent shopping experience, and expanding the use of technology throughout the value chain.
Currently, Target has launched efforts to appeal to budget-conscious shoppers. Key initiatives include introducing 10,000 new items starting at $1 — most under $20 — and several new affordable private-label brands.
In the second quarter, comparable store sales declined by 1.9%, less than expected, while earnings per share reached $2.05, beating Wall Street estimates by two cents.
Planned succession and internal decision
Since 2022, the Board of Directors has been working on a succession plan with Brian Cornell, who agreed at the time to extend his tenure beyond the typical retirement age. Although the company evaluated both internal and external candidates, it ultimately chose Fiddelke without disclosing which search firm was involved or which external profiles were considered.
With information from Reuters and Target
