Michael Fiddelke, a 20-year Target veteran and the company’s current chief operating officer, is preparing to take on one of the most challenging roles in retail. When longtime CEO Brian Cornell retires in February, Fiddelke will step into the top job with the task of reviving a brand that has lost some of its shine in a fiercely competitive market.
Taking Over a Retailer in Decline
Under Cornell’s leadership, Target made strides in digital expansion and brand partnerships, but the past two years have been difficult. The company has posted declining comparable sales in six of the last nine quarters, and according to Placer.ai, store foot traffic fell more than 3% year-over-year in Q2 2024.
Despite modest improvements in a few areas, Target is still under pressure as shoppers turn to lower-cost rivals like Walmart and dollar stores. “I know we’re not realizing our full potential right now,” Fiddelke admitted on Wednesday’s earnings call. “So I’m stepping into the role with a clear and urgent commitment to build new momentum in the business and get back to profitable growth.”
Fiddelke’s 3-Part Plan to Get Target Back on Track
On the call, Fiddelke laid out a three-part turnaround strategy that he says is rooted in “knowing what makes Target Target.”
1. Reclaiming Style and Design Leadership
Fiddelke said the company needs to lean harder into its reputation for stylish, affordable products. Instead of relying on occasional high-profile design collaborations, he wants to ensure Target’s merchandising authority is visible across every category, year-round.
He cited Target’s $31 billion private-label portfolio as a powerful tool to refresh shelves with innovative and on-trend products. Fiddelke also highlighted the importance of expanding partnerships with national brands beyond clothing and beauty into areas like housewares and food, categories that drive repeat traffic.
2. Restoring the Joyful Shopping Experience
Target has long relied on what executives call the “Tarzhay effect” — when shoppers come in for one item and leave with a basket full of extras. But recent store visits have shown inconsistency: some locations are lively and well-stocked, while others suffer from bare shelves, staffing shortages, and lackluster assortments.
Fiddelke said his focus will be on bringing back the “elevated and joyful” shopping experience that fosters loyalty. “We can never take for granted the love our guests show us when they affectionately refer to their local store as ‘My Target.’ That’s loyalty we need to consistently go out and earn,” he said.
3. Embracing Technology and Efficiency
Finally, Fiddelke emphasized that technology investments are critical to Target’s future. His work at the Enterprise Acceleration Office, created earlier this year to find $2 billion in efficiencies, revealed multiple structural challenges: outdated technology, manual processes, unclear responsibilities, siloed teams, and weak access to quality data.
By streamlining operations, automating repetitive work, and modernizing systems, Fiddelke believes Target can become more agile and cost-effective. Some initiatives are already underway, including a Fun 101 merchandising concept focused on style and cultural relevance and a new stores-as-hubs fulfillment model currently being tested in Chicago.
“Growth Must Be the Focus”
Fiddelke made clear that his turnaround plan is already in motion — and he won’t wait until February to act. “The only path that works long-term in retail is one that’s built on the back of growth, and so that becomes me and my team’s sole focus as I step into the job,” he said.
With Target’s once-strong reputation now under pressure, Fiddelke’s challenge will be to convince both shoppers and investors that the company can regain its edge. His three-part plan — style leadership, consistent shopping experiences, and tech-driven efficiency — will be closely watched as Target seeks to reclaim its position in American retail.
