NEW YORK, USA – US retail giant Target has named its Chief Operating Officer, Michael Fiddelke, as the new chief executive, as the company works to reverse a decline in sales and its share price. Fiddelke, a 20-year veteran of the company, will take over from Brian Cornell in February. Cornell’s decade-long tenure saw him become the company’s first-ever outsider CEO.
The leadership change comes as rising prices and uncertainty over the impact of US tariffs have raised concerns about consumer spending, particularly on the discretionary products that Target is known for, such as apparel and electronics. Following the announcement, Target’s share price dropped by nearly 11% before a slight recovery.
In a statement, Fiddelke acknowledged the company has “work to do” and needs to move “faster, much faster,” pledging to improve product quality and integrate more technology into the business. The appointment of an internal candidate to the top job marks a return to Target’s tradition. However, analysts suggest the move may underwhelm investors who were hoping for a major external hire to bring fresh insight to the intense competition from rivals like Amazon and Walmart.
The company’s sales have been hit by a “challenging environment,” including the introduction of new tariffs and a backlash over its previous diversity, equity, and inclusion policies.
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