Target is entering a new era of leadership. The Minneapolis-based retailer announced that Brian Cornell, who has served as CEO since 2014, will step down early next year. His successor will be Michael Fiddelke, a company veteran who first joined Target as an intern more than two decades ago.
Fiddelke Rises From Intern to CEO
Fiddelke, currently chief operating officer and previously chief financial officer, will officially take the reins as CEO on February 1, 2025. Since joining Target in 2003 as an intern, he has worked across merchandising, finance, operations, and human resources, building a reputation as a versatile leader deeply familiar with the company’s culture and strategy.
In a statement, Fiddelke pledged to steer Target back on track after a turbulent year. “We need to refocus our strategy and build on the assets and capabilities that have made Target a beloved destination for incredible products and a one-of-a-kind shopping experience,” he said. “And to be clear, we have work to do to reach our full potential.”
Cornell to Become Executive Chair
Cornell, who turned 65 in 2022, had already extended his tenure beyond the company’s typical retirement age after Target scrapped its age limit to allow him to stay on for three additional years. Under his leadership, Target modernized its stores, expanded its digital capabilities, and repositioned itself as a competitive player against rivals like Walmart and Amazon.
As he steps aside from the top role, Cornell will remain influential as executive chair of the board of directors, ensuring continuity at a time when the retailer faces mounting challenges.
Challenges for Target
The leadership transition comes at a critical moment. Target has struggled with declining sales and slowing store traffic in 2024, particularly after rolling back its diversity, equity, and inclusion (DEI) initiatives — a move that drew both criticism and praise from different corners of the consumer base.
For the second quarter, Target reported sales of $25.2 billion, down nearly 1% from a year earlier, but slightly ahead of Wall Street expectations of $24.93 billion. Still, shares were down nearly 10% in premarket trading Wednesday, and the stock remains 10.8% lower year-to-date.
The company reaffirmed its outlook for a low-single-digit sales decline in 2025, underscoring the challenges facing its new CEO.
Analysts React
Industry experts were quick to weigh in on the leadership shake-up. Neil Saunders, managing director of GlobalData, described Target’s latest earnings as carrying “the hallmarks of a retailer not living up to its potential.”
On Fiddelke’s appointment, Saunders expressed skepticism. “While we think Fiddelke is talented and has a somewhat different take on things compared to current CEO Brian Cornell, this is an internal appointment that does not necessarily remedy the problems of entrenched groupthink and the inward-looking mindset that have plagued Target for years.”
By contrast, Japanese banking giant Mizuho’s U.S. arm praised Fiddelke’s career trajectory as “impressive,” highlighting his experience across key business functions. However, it also acknowledged investor disappointment, noting: “As indicated by the pre-market move in shares, we and the investment community preferred an external candidate to bring wholesale change to Target.”
As Fiddelke prepares to step into the CEO role, the stakes could not be higher. He inherits a brand that remains a staple of American retail but one facing mounting pressure from shifting consumer preferences, intense competition, and economic uncertainty.
Whether an insider can provide the fresh perspective investors are hoping for remains to be seen. What is certain is that Target’s future under Fiddelke will be closely watched by Wall Street, analysts, and millions of loyal customers alike.
