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Target’s new CEO, Michael Fiddelke, took over on Monday and faces the challenging task of turning around the retailer that has suffered a prolonged period of declining sales and now faces ongoing unrest in its home city of Minneapolis.
Target announced in August that Fiddelke, then-chief operating officer and 20-year Target veteran, would succeed Brian Cornell in leading the embattled retailer.
Cornell had been at the helm for over a decade. In 2022, he made a three-year commitment to remain CEO. That year, Target’s board scrapped its mandatory retirement age of 65, allowing him to stay on during a pivotal period for the company as it worked to revive traffic and growth.
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However, the company’s headwinds persisted, with Target reporting back-to-back quarters of continued sales declines.
Under his leadership, Fiddelke plans to improve the company’s merchandising, and enhance its digital capabilities and technology to drive growth and revive sales.
In a Monday memo to employees, Fiddelke outlined some of his first priorities, including sharpening Target’s merchandise mix, improving stores and its website to make shopping easier and more appealing, and using technology to streamline operations and personalize the customer experience.
The company also plans to invest more in employees and strengthen ties to the communities where it operates, Fiddelke said in the memo.
“Priority 1 through 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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“This strategy is coming to life across the business, and we’re already seeing the progress,” he continued.
In November, Target reported $25.3 billion in third-quarter sales, down 1.5% from a year earlier.
Sales at stores open for at least a year, a key indicator of a retailer’s health, declined 2.7% in the third quarter, with in-store sales down sharply, partially offset by growth in online sales.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 109.53 | +4.06 | +3.85% |
In the prior three-month period, the company reported $25.2 billion in sales, down just under 1% from a year ago. The company blamed the dip on shoppers pulling back on merchandise, though that was partly balanced out by stronger non-merchandise sales, like services. Sales at stores open at least a year also fell nearly 2%, with in-store sales dropping more than 3%.
Target shares are up more than 10% year to date.
The company is headquartered in Minneapolis, where there have been large-scale protests against federal immigration operations. The protests have intensified after two fatal shootings involving federal agents in the area, with some anti-ICE agitators occupying Target stores.
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Alex Pretti, a 37-year-old Minneapolis resident and ICU nurse, was fatally shot by federal agents on Jan. 24 during an immigration enforcement operation in the city. On Jan. 7, federal immigration officers fatally shot Renée Nicole Good, also 37, during an ICE enforcement action in Minneapolis; both incidents occurred as part of the broader Operation Metro Surge.
In the wake of Pretti’s death, Fiddelke was one of 60 CEOs of Minnesota-based companies calling for an “immediate deescalation of tensions” and for officials from the state, local and federal level to work together.
“We call for peace and focused cooperation among local, state and federal leaders to achieve a swift and durable solution that enables families, businesses, our employees, and communities across Minnesota to resume our work to build a bright and prosperous future,” the group said in a letter.
