Target CEO Michael Fiddelke takes over amid declining sales and challenges
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Target’s new CEO, Michael Fiddelke, took over on Monday and faces the challenging task of turning around a retailer that has suffered a long period of declining sales and is now facing ongoing turmoil in its hometown of Minneapolis.
Target announced in August that Fiddelke, then-CEO and a Target veteran, would succeed Brian Cornell in leading the troubled retailer.
Cornell had been at the helm for more than a decade. In 2022, he made a three-year commitment to remain CEO. That year, Target’s board waived its mandatory retirement age of 65, allowing him to continue working at a critical time for the company as it worked to revive traffic and growth.
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However, the company’s headwinds have continued, with Target reporting consecutive quarters of continued sales declines.
Under his leadership, Fiddelke plans to improve the company’s sales, and develop its digital and technology capabilities to drive growth and revitalize sales.
Michael Fiddelke previously served as CEO of Target. (Siddharth Cavale/Reuters)
In a Monday memo to employees, Fiddelke outlined some of his priorities, including sharpening Target’s merchandise mix, improving its stores and website to make shopping easier and more attractive, and using technology to streamline operations and personalize the customer experience.
The company also plans to invest more in employees and strengthen the communities in which it operates, Fiddelke said in the letter.
“Priority 1 to 10 is accelerating Target’s growth,” Fiddelke said in an emailed statement to FOX Business, adding that the company is “moving with urgency and focus.”
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Michael Fiddelke replaced Brian Cornell as Target’s new CEO in February. (Michael Nagle/Bloomberg via Getty Images)
“This strategy is working across the business, and we are seeing progress,” he continued.
In November, Target reported $25.3 billion in third-quarter sales, down 1.5% from last year.
Sales at stores open at least a year, which is an important indicator of a retailer’s health, fell 2.7% in the third quarter, with store sales falling sharply, offset by slower growth in online sales.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| TGT | Company TARGET CORP. | 105.47 | +2.63 |
+2.56% |
In the last three months, the company reported sales of $25.2 billion, down just under 1% from last year. The company blamed the dip on consumers pulling back on sales, though that was partly limited to sales of non-firm merchandise, such as services. Sales at stores open at least a year also fell by about 2%, same-store sales fell by more than 3%.
Shares of the target are up more than 10% year to date.
The company is based in Minneapolis, where there have been major protests against immigrant labor. Protests have intensified after two shootings involving federal agents in the area, and other anti-ICE activists filled Target stores.
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A shopper at a Target store before Black Friday in Jersey City, New Jersey. (Michael Nagle/Bloomberg via Getty Images)
Alex Pretti, a 37-year-old Minneapolis resident and ICU nurse, was shot and killed by federal agents on Jan. 24 during the work to strengthen the immigrants in this city. On Jan. 7, federal immigration officials shot and killed Renée Nicole Good, also 37, during an ICE enforcement operation in Minneapolis; both incidents took place as part of Operation Metro Surge.
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After Pretti’s death, Fiddelke was one of 60 CEOs of Minnesota-based companies to call for “an immediate de-escalation of the conflict” and for state, local and federal officials to work together.
“We ask for peace and focused cooperation among local, state and federal leaders to find a swift and strong solution that allows families, businesses, our workers and communities across Minnesota to resume our work to build a brighter and more prosperous future,” the group said in a letter.
