Target CEO reshapes his leadership team in first big move since taking over this month

Target’s New CEO Reshuffles Leadership Team Amid Operational Challenges

Target Corporation is undergoing significant leadership changes as new CEO Michael Fiddelke works to address operational challenges that have plagued the retail giant in recent months. The restructuring, announced Tuesday, includes the departure of several long-time executives and a redistribution of responsibilities aimed at increasing the company’s agility.

Rick Gomez, a 13-year veteran who oversaw the company’s merchandise inventory, will be leaving Target. Meanwhile, Jill Sando, chief merchandising officer responsible for categories including apparel and home goods and a company fixture since 1997, has announced her retirement.

“It’s the start of a new chapter for Target, and we’re moving quickly to take action against our priorities that will drive growth within our business,” Fiddelke said in a statement. The leadership changes will become effective Sunday, though Gomez and Sando will remain temporarily to facilitate the transition.

In their place, Lisa Roath, who previously managed food, essentials, and cosmetics, will assume Fiddelke’s former role as chief operating officer. Cara Sylvester, previously chief guest experience officer, will step into the chief merchandising officer position.

The restructuring extends beyond the executive suite. Target is increasing investment in store-level staffing while eliminating approximately 500 positions across distribution centers and regional offices. These cuts represent only a small fraction of Target’s workforce of over 400,000 employees.

Fiddelke, a 20-year Target veteran who took the helm this month, is facing multiple challenges as he settles into the CEO role. Industry analysts have expressed surprise at Target’s selection of an internal candidate, with many suggesting the retailer needed fresh perspectives to revitalize slumping sales.

The Minneapolis-based retailer has struggled in recent quarters as inflation-weary consumers have cut back on discretionary spending. Customer complaints about disorganized stores and a perceived departure from the budget-friendly merchandise mix that earned the company its “Tarzhay” nickname have further complicated Target’s market position.

The company has also faced political headwinds from multiple directions. Some consumer groups organized boycotts after Target scaled back certain diversity, equity, and inclusion initiatives. Simultaneously, the retailer has drawn criticism from others regarding its response to immigration enforcement actions in Minneapolis.

Tensions escalated when federal agents detained two Target employees at a store in Richfield, Minnesota earlier this month. While Fiddelke has not issued a public statement on the incident, he sent an internal video message to employees describing recent violence as “incredibly painful.” In January, he was among 60 Minnesota-based CEOs who signed an open letter calling for governmental action following fatal shootings in the area.

The controversy has sparked planned protests at more than two dozen Target locations nationwide, including stores in Los Angeles, Chicago, and Raleigh. Luis Argueta, a spokesperson for Unidos Minnesota, part of the ICE Out Now coalition, anticipates significant turnout at the Richfield store demonstration scheduled for Wednesday.

These leadership changes mark Fiddelke’s first major organizational restructuring since taking over from former CEO Brian Cornell. The moves indicate Target’s strategic priorities as it navigates a challenging retail environment characterized by cautious consumer spending, operational inefficiencies, and social controversies affecting its brand reputation.

Target reiterated its profit guidance alongside the leadership announcement, suggesting the company remains confident in its financial trajectory despite the organizational changes and external pressures.