Target Corporation, the Minneapolis-based retail giant known for its signature red bullseye and trend-forward merchandise, is entering a new era of leadership at a time of profound challenge and change. On August 20, 2025, Target announced that Michael Fiddelke, its current chief operating officer and a company veteran of two decades, will take over as chief executive officer effective February 1, 2026. Brian Cornell, who has led Target since 2014 and steered it through a remarkable period of growth and transformation, will transition into the role of executive chair of the board of directors.
This leadership handoff comes as Target grapples with slumping sales, a shaken Wall Street, and mounting criticism over its strategic direction. The company’s latest quarterly results, released the same day as the CEO announcement, revealed net earnings of $935 million—down 21.5 percent from $1.19 billion a year earlier. Operating income fell 19.4 percent to $1.3 billion, and net sales slipped to $25.2 billion from $25.45 billion the previous year. Comparable sales declined 1.9 percent, with a 3.2 percent drop in store sales only partially offset by a 4.3 percent rise in digital sales. Target’s stock responded sharply, tumbling more than 10 percent in premarket trading and deepening a year-to-date decline that has left it among the S&P 500’s worst performers in 2025, according to CNN Business.
Fiddelke, 49, is no stranger to Target’s inner workings. He started as an intern and has since held leadership roles across merchandising, finance, operations, and human resources. As chief financial officer and, most recently, chief operating officer, he’s credited with driving more than $2 billion in efficiencies, advocating for better pay and benefits for employees, and spearheading efforts to expand the company’s store fleet and digital capabilities. In May 2025, he also established the Enterprise Acceleration Office—a new initiative aimed at eliminating operational complexities and fostering a more agile, technology-driven organization.
Despite Fiddelke’s deep roots at Target and his record of operational improvements, his appointment has drawn mixed reactions. Many investors and analysts had hoped for an outsider who could bring fresh perspective and bold new strategies to shake up a company they see as mired in “entrenched groupthink.” As Neil Saunders of GlobalData Retail put it in a note to clients, “This is an internal appointment that does not necessarily remedy the problems of entrenched groupthink and the inward-looking mindset that have plagued Target for years.” A June survey by Mizuho Securities found that 96 percent of investors favored an external candidate for the top job, a sentiment that was echoed in the market’s chilly response to the news.
Christine Leahy, lead independent director of Target’s board, emphasized that the board’s decision followed “an extensive external search and assessment of many strong candidates” over several years. “Michael’s tenure gives him unmatched enterprise insight and a base of strong team trust,” she said in a statement. “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 himself acknowledged both the urgency of the moment and the scale of the challenge ahead. “It is truly an honor to be named Target’s next CEO. After more than 20 years at Target, I know the power of our brand, the talent of our team, and the special place we hold in retail,” he said in a statement published by WWD. “My history with the company also deepens my sense of responsibility for where Target goes next, and I step into the role with an urgent commitment to drive growth and deliver better results. I am eager to refocus our strategy and build on the assets and capabilities that have made Target a beloved destination for incredible products and a one-of-a-kind shopping experience. And to be clear, we have work to do to reach our full potential.”
On a call with reporters, Fiddelke laid out three immediate priorities: reestablishing Target’s reputation for stylish and unique merchandise, providing a more consistent and appealing customer experience, and leveraging technology to run a more efficient business. He also signaled a desire to “embrace change with pace and purpose” and to regain the momentum that once made Target a retail standout.
Target’s struggles are multifaceted. The company’s annual sales, which soared during the pandemic as Americans snapped up home goods and office supplies, have been flat for four years. As shoppers have shifted back to essentials and groceries—categories where Walmart and Costco dominate—Target’s focus on discretionary merchandise has left it exposed. More than half of Target’s sales come from nonessential items, a vulnerability compounded by cost pressures from tariffs and a consumer slowdown. According to Bank of America analyst Robert Ohmes, Target imports about half of its merchandise, compared to just a third for Walmart, forcing it to raise prices more aggressively to offset tariff impacts.
Adding to the turbulence, Target has faced backlash from both sides of the political spectrum over its handling of diversity, equity, and inclusion (DEI) policies. Earlier this year, the company ended some of its DEI programs, sparking protests from longtime supporters and even from members of the founding Dayton family, who called the move “a betrayal.” At the same time, Target has faced lawsuits and criticism from conservative activists over its LGBTQ-themed merchandise. The company’s decision to remove some items from stores during Pride Month in response to threats against employees only deepened the controversy and, by the company’s own admission, hurt sales. As CNN reported, Target’s progressive customer base and deep commitment to inclusion have made these decisions particularly fraught.
Target’s competitive challenges are further underscored by its recent breakup with Ulta Beauty, ending a partnership that brought mini beauty shops to nearly a third of Target’s stores. That arrangement will conclude in August 2026, removing a key point of differentiation in the beauty sector. Meanwhile, rivals like Walmart and Amazon continue to gain ground, leveraging their scale and grocery dominance to weather consumer headwinds more effectively.
Brian Cornell, reflecting on his 11-year tenure, expressed confidence in his successor. “There is no one better suited to move Target forward than Michael Fiddelke,” he said. “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.” Cornell will remain as executive chair, supporting Fiddelke and the board as the company navigates its next chapter.
Fiddelke’s vision for Target’s future is clear-eyed yet optimistic. “We must improve,” he told analysts. “We are not realizing our full potential right now.” With a focus on trendier merchandise, more inviting stores, and strategic investments in technology—such as the new “Fun 101” initiative to capitalize on fast-moving trends—Fiddelke aims to restore Target’s reputation as an innovator and destination retailer. Whether that’s enough to reverse years of stagnation and win back Wall Street’s trust remains to be seen, but one thing is certain: the next year at Target will be anything but dull.
