Target Corp. turned to an insider to guide the retailer through weak sales and declining customer enthusiasm when it appointed longtime executive Michael Fiddelke as its new CEO. Target’s stock fell 6.3% on Wednesday as a result of the action, which follows over two years of flat or declining quarterly revenue.
An outsider who could offer the Minneapolis-based chain a new outlook was what investors had hoped for. Rather, Target hired a seasoned employee who contends that extensive institutional knowledge will facilitate change more quickly. One proponent of the change stated, “By being inside one of the largest retailers in the U.S. for so long, he has seen up close what works, what’s wrong and the levers to pull to fix it.”
Target announces new CEO Michael Fiddelke
Fiddelke, who began working at Target in 2003 as a finance intern, is adamant that the company’s best course of action is to go back to its origins in design and style. In an interview earlier this week, he stated, “Target is being its most Target when those things are true.” He refers to style and design as “our North Star,” even as he seeks to increase the use of technology and enhance the customer experience.
Fiddelke was questioned by departing CEO Brian Cornell at a company meeting regarding the precipitous drop in stock that occurred after his appointment. “We have to do the work,” Fiddelke answered. “You have to prove it.” Target is now a “show me story,” he continued, and “action that leads to results” is the only way to restore credibility.
His focus on design is reminiscent of Target’s innovative partnerships from the early 2000s, such as their exclusive partnership with designer Isaac Mizrahi. Fiddelke remarked, “It was one of those standout, only-at-Target moments that shows the power of leading with style and design.”
Fiddelke’s background blends corporate experience with small-town roots. Before advancing through Target’s ranks, he worked at Deloitte, studied engineering at the University of Iowa, and obtained an MBA from Northwestern after growing up in Manchester, Iowa. After almost five years as CFO, the company promoted him to COO in 2024. “My career path reflects that hunger to learn,” he said.
Skeptics raise an eyebrow
There are still skeptics. “It is likely hard for the market to get behind a turnaround led by a long-tenured insider,” stated Zhihan Ma, a retail analyst at Bernstein. Customers have also expressed dissatisfaction with Target’s merchandise, high prices, and lackluster feel.
Close colleagues cite Fiddelke’s leadership style as a strength. Lisa Roath, Target’s chief merchant for food, necessities, and cosmetics, stated, “/I see him being able to move faster because he already has a knowledge of how everything works.” She said that although he was quick to demand results, he had compassion. “He’s a real person that you trust and want to do your best for.”
Featured Image Credit: Erik Mclean; Pexels: Thank you!
