Target has appointed lifelong employee Michael Fiddelke as its new chief executive, effective February 1, 2026, as the retailer struggles to reverse sliding sales. The 49-year-old will succeed Brian Cornell, who has led the company for over a decade and will transition to executive chairman.
According to Daily Mail reports, Target stock lost over 10 per cent in pre-market trading following the CEO announcement, reflecting Wall Street's skepticism about the internal promotion amid sustained business challenges.
Fiddelke's appointment marks his tenth promotion since joining Target as a college intern in 2003. He rose through nine positions before becoming chief operating officer and executive vice president in January 2024.
Market challenges intensify
The leadership change comes as Target faces sustained competitive pressure from Walmart and Amazon, with the company posting 11 consecutive quarters of flat or declining sales. Sales from stores and digital channels operating for at least a year fell 1.9 per cent in the most recent quarter.
Of 35 merchandise categories Target tracks, only 14 gained or maintained market share during that period. The retailer has lost ground to competitors as consumers increasingly view rivals as offering better value and selection.
Neil Saunders at GlobalData criticised Target's leadership effectiveness, according to Daily Mail reports, questioning whether an internal hire can deliver the transformational change needed to compete with retail giants.
Employee confidence crisis
Internal morale reflects the business challenges. A company-wide survey found about 40 per cent of Target's 260,000 employees lack confidence in the retailer's future.
Fiddelke acknowledged the scale of the challenge ahead. "We've got to get back to growth," he told reporters at the company's Minneapolis headquarters. "That is mission 1, 2, 3, 4, 5."
Operational complexity
The incoming CEO pointed to supply-chain disruptions and pandemic-era complications that have degraded the shopping experience. Stores have struggled with stock-outs while serving dual roles as e-commerce shipping hubs.
"We've got some work to do to untangle that complexity because what we can't have is any hiccups in the store experience," Fiddelke said.
Return to core strengths
Fiddelke pledged to refocus on Target's "North Star" of stylish, unique merchandise and excellent customer experiences. The strategy aims to restore the retailer's "Tar-zhay" reputation for affordable luxury.
Cornell praised his successor's readiness for the role. "Mike was the right candidate to lead our business back to growth," he said. "Michael has developed a deeper knowledge of our business than anyone I know."
Sources used: "PA Media", "Independent", "Daily Mail" Note: This article has been edited with the help of Artificial Intelligence.
