Target CEO to Step Down Amid Company Struggles
Target is undergoing a leadership shake-up as it struggles to reverse sliding sales and regain momentum. On Wednesday, the Minneapolis-based retailer announced that Chief Operating Officer Michael Fiddelke will become the company’s next CEO, succeeding Brian Cornell, who has led the brand for more than a decade.
The board unanimously elected Fiddelke, 49, to take over effective February 1. The move comes as Cornell, 66, wraps up the three-year extension he committed to in 2022 when the board removed Target’s mandatory retirement age to keep him in place during a critical period of transition.
Fiddelke’s Track Record at Target
Fiddelke has been with Target for over two decades, playing a key role in shaping many of the company’s core strengths. He has served in senior roles across merchandising, finance, operations, and human resources. In recent years, as COO, he helped drive exponential growth in Target’s supply chain, stores, and digital operations, while also overseeing more than $2 billion in efficiency savings.
Christine Leahy, Target’s lead independent director, praised his experience, saying his leadership blends “enterprise insight with a ‘fresh eyes’ mindset,” which the board believes is critical to pushing the company forward.
A Company Facing Mounting Pressure
The leadership transition comes amid difficult financial headwinds. In its most recent quarter, Target reported $25.2 billion in sales—down nearly 1% year over year—with in-store sales dropping over 3%. Online sales, however, grew by a little more than 4%. Quarterly profit fell 19% from last year, landing at $1.3 billion.
Earlier this year, Target warned investors that profits would remain under pressure in 2025 due to soft consumer spending and tariff-related uncertainties. The retailer now expects a low-single-digit sales decline for the fiscal year, revising down its earlier projection of modest growth.
Strategy Going Forward
To stabilize operations and fuel long-term growth, Target has launched its “Enterprise Acceleration Office” initiative, announced in May. The effort is aimed at making the company more nimble by fostering adaptability, innovation, and resilience in an increasingly competitive retail landscape.
The stakes for Fiddelke are high. Target has been squeezed between budget-conscious shoppers cutting back on discretionary items and the ongoing dominance of Walmart and Amazon in the retail space. With declining sales and profit pressures, the new CEO will need to reestablish Target’s reputation for value and convenience while adapting to a rapidly shifting consumer environment.
Cornell’s departure marks the end of an era, but Fiddelke steps in with deep institutional knowledge and the confidence of the board to carry out a turnaround at one of America’s most recognizable retailers.