Target CEO Transition: Michael Fiddelke Named SUCCESSOR
On August 20, 2025, Target Corporation surprised the retail world by announcing that Chief Operating Officer Michael Fiddelke will become Target CEO on February 1, 2026. He takes over from Brian Cornell, who has served for 11 years and will shift to the Executive Chair of the Board. Fiddelke, a 20-year company veteran, has led finance, merchandising, and operations, making him a natural heir and the Board’s unanimous support.
The Board insists that his “unmatched enterprise insight,” not a desire for an outsider, is the core reason investors have taken Target’s pick of internal candidates seriously. This vote of confidence is crucial as the company copes with falling sales, a backfire on recent DEI reversals, and a competitive onslaught from Walmart and Amazon—pressure that cannot be ignored.
Why This Swap Matters
Speculation has mounted for months over Cornell’s possible retirement. He grew Target to a $100 billion-plus omnichannel force, pushing innovations like Drive Up same-day services and a wider range of own-label merchandise. Yet the last year has seen eight straight quarters of flat or declining same-store sales, sparking the board to seek a new vision, not a new face surface, and get it from someone with historical knowledge and recent use of new digital and operational tools.
Fiddelke’s strategy as the new Target CEO centers around three core priorities:
- Reclaiming Merchandising Control: The goal is to bring back fun, on-trend, and affordable products to set Target apart from the competition.
- Improving the Customer Journey: The focus is on fixing out-of-stock problems and overcrowded aisles.
- Harnessing Technology: The plan is to use data and automation to make Target’s back-end operations smoother.
Challenges the Incoming CEO Will Face
- Extended Sales Downturn
Target’s Q2 2025 numbers show a 1.9% fall in same-store sales and a 21% drop in profits. With over half the store’s assortment made up of discretionary items, the chain is sensitive to consumers pulling back. Tariffs are a nagging concern, especially since Target relies more on imports than Walmart. Balancing cost increases that can upset cost-conscious shoppers while still managing margin pressure will be a tightrope walk. - DEI and Pride Pushback
The decision to dial back both diversity programs and Pride decor resulted in backlash from both sides of the aisle. Reverend Jamal Bryant initiated a Lenten boycott, gathering 250,000 signatures. At the same time, the founding Dayton family described the move as a betrayal. To move forward, the new Target CEO will need to win back credibility without deepening divisions.
3. Operational Missteps
Neil Saunders at GlobalData spotted serious offsides: “long waits at checkout and stores looking increasingly unkempt.” It’s no wonder shoppers are drifting away. To tackle these slip-ups, Target CEO Brian Fiddelke created an Enterprise Acceleration Office that’s charged with slicing through operational clutter.
Investor Skepticism and Stock Performance
Wall Street didn’t wait for answers. Target shares sank 7% to 10% on August 20, and analysts pointed to the need for an outsider to shatter ingrained patterns. Over the past five years, the stock has tumbled 23%, lagging Walmart’s 125% growth and Costco’s 200%. Fiddelke wasn’t blindsided: “We must improve… I’m stepping into the role with an urgent commitment to drive growth,” he stated. The test now is whether inside experience can deliver the shake-up.
The Road Ahead for Target’s Leadership
Fiddelke knows the game. The question is whether he’s willing to change the playbook. His past includes planning limited drops in “Fun 101,” pushing pop-culture-inspired gadgets and trendy home accessories. So the hardest work begins: keeping what’s strong, ditching what’s stale, and cautiously threading the needle to transform the Target experience without losing the brand’s soul.
Cornell leaves a mixed record as Target CEO: he shrank aisle waste, added go-to checkout lanes, and steered online sales through the COVID surge, yet foot traffic and margins lately climbed modestly and shareholder restlessness is on the rise. He’ll now stay on as Executive Chair, steering targets and strategy while handing Fiddleke the keys.
Conclusion: A Test of Resilience
Choosing Mike Fiddleke as Target CEO signals that Target is betting snugly on a hand that knows the cards. The CFO who fine-tuned loyalty programs, aisle assignment, and last-mile delivery now faces three straightforward yet tall demands: speed up digital reboots, trim waste deep in the supply chain, and remind shoppers that Tar-zhay still does “affordable chic.” The brand that once out-glimmered rivals now needs to marry thrift with the uncommon style that once mesmerized bargain-loving bloggers.
As Target CEO quipped last morning, “The momentum is still resting in our aisle. Now we lift it off the shelf.” Investors, scouts, and the talk-show crowd will soon decide whether Target pulls the bullseye back into the spotlight.
Source: https://edition.cnn.com/2025/08/20/business/target-stock-ceo-cornell