In a significant leadership transition, Target Corporation announced on August 19, 2025, that Michael Fiddelke, the company’s Chief Operating Officer and a veteran of over 20 years, will succeed Brian Cornell as CEO, effective February 1, 2026. Cornell, who has led Target since 2014, will transition to the role of executive chairman.
Fiddelke’s appointment comes at a crucial time for Target as the company works to reinvigorate its growth trajectory. The retail giant reported quarterly sales of $25.2 billion, marking a slight year-over-year decline. In-store sales dropped by over 3%, while online sales saw an increase of more than 4%. Overall profit also decreased by about 19%, partly attributed to a pullback in consumer spending and ongoing uncertainties surrounding tariffs. These challenges have put pressure on Target, but they also provide an opportunity for Fiddelke to chart a new course for the company.
Under Fiddelke’s leadership, Target plans to implement a three-part strategy aimed at revitalizing the company’s retail approach and driving profitable growth. The first focus will be on expanding Target’s private-label offerings, particularly its clothing brand, which generates $31 billion in annual sales. This initiative will include a push to enhance the quality and appeal of Target’s in-house brands, positioning them as key differentiators in a competitive market. Additionally, Target plans to strengthen its partnerships with national brands across various product categories, including homeware and food. The goal is to offer a broader and more diverse product mix that appeals to a wide range of customers.
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The second focus of Fiddelke’s strategy will be on enhancing the in-store atmosphere to make the shopping experience more engaging and enjoyable. He believes that by making Target’s stores feel more “elevated and joyful,” the company will foster stronger customer loyalty. Creating a more pleasant and inviting shopping environment is expected to attract more foot traffic and improve the overall shopping experience, especially as consumers return to in-store shopping after the pandemic’s impact on retail behavior.
Finally, Fiddelke aims to modernize Target’s operations by leveraging technology to target inefficiencies, reduce manual work, and accelerate data-driven decision-making. One of the key initiatives already underway is a pilot project in Chicago, which focuses on making Target’s operations more streamlined and aligned with the latest consumer trends. The pilot aims to create a store experience that reflects both style and cultural relevance, ensuring that Target’s offerings resonate with today’s shoppers.
Fiddelke has also emphasized the need for Target to overcome its legacy systems and break down organizational silos that may hinder innovation and agility. He sees these obstacles as key challenges that must be addressed if the company is to maintain its competitive edge in an ever-evolving retail environment. By fostering greater collaboration across departments and leveraging the latest technology, Target aims to improve its operational efficiency and better meet the needs of its customers.
As Target embarks on this new chapter, investors, analysts, and industry observers will be closely watching how well Fiddelke’s strategy is executed. With a mix of in-store enhancements, a focus on private-label and national brand partnerships, and a commitment to operational modernization, Target is positioning itself to face the challenges of a competitive retail landscape head-on. While the path forward will undoubtedly require careful execution, Fiddelke’s leadership and vision could mark the beginning of a new era for Target, one that balances growth with sustainability and customer satisfaction.
As the retail industry continues to evolve, Fiddelke’s leadership will be essential in guiding Target through these turbulent times. With a sharp focus on revitalizing the brand and embracing modern retail trends, Target is taking steps to ensure it remains a key player in the retail sector for years to come.
