Target’s New CEO Charts Multibillion-Dollar Path to Revitalize Retail Giant

Target plans to invest billions of dollars this year in an ambitious effort to reverse declining sales and recapture its reputation as a destination for stylish, affordable shopping. The turnaround effort is being led by Michael Fiddelke, who took over as CEO last month after more than two decades with the Minneapolis-based retailer.

Fiddelke, previously Target’s chief operating officer, faces significant challenges ahead. Some investors had called for an outside candidate to replace outgoing CEO Brian Cornell, who led the company for more than 11 years. Target recently reported another quarter of declining comparable sales and has faced pressure regarding its stance on immigration enforcement in its Minneapolis home base.

In a recent interview at Target headquarters, Fiddelke outlined his strategy for refreshing stores and merchandise, rebuilding customer trust, and navigating today’s complex political and economic environment.

“It’s a ‘Prove it’ story,” Fiddelke said when asked how he’ll convince skeptics he brings fresh perspective to the company’s challenges. “I have the benefit of a 23-year running start that has taught me so much about how retail works. I’ve gotten to see Target at its very best and when we are not at our very best.”

Fiddelke believes his long tenure gives him valuable insight, but acknowledges he must combine that experience with “clear-eyed candor about where we’re at and where we need to drive change.”

One key element of his strategy involves sending Target’s merchandise buyers to travel more extensively for inspiration. The company’s popular Alpine Chalet collection, featured in stores during the recent holiday season, came from a team visit to European Christmas markets.

“One of the things that’s critical to being design-led is you have to have an environment that fosters creativity in the right way,” Fiddelke explained. “We lost it during the pandemic. Travel was limited for a couple of years. We’re back to full form now.”

The new CEO has also spent time in Target’s corporate archives, seeking insight from the company’s history while maintaining a forward-looking approach. “History can be instructive on centering who we are in our core. That’s different than nostalgia for nostalgia’s sake,” he said. “The playbook from 10 years ago is not going to win in today’s retail.”

Target has faced criticism for pulling back on diversity, equity and inclusion programs and for not taking a stronger public stance against Immigration and Customs Enforcement (ICE) operations in Minneapolis. Fiddelke emphasized the company’s community commitment, noting Target’s long-standing practice of donating 5% of operating profits back to communities where it operates.

“Target being a place for everyone matters. The teams we build that reflect the communities that we serve, that’s true for the guests in our stores, that’s for the partners that find a place on our shelf,” he said.

Regarding consumer boycotts, Fiddelke acknowledged they impacted sales last year. “We know we’ve got trust to win back with guests, and we’ll be focused on doing it. There’s no easy button to win back trust, but we’ll do the work.”

On the sensitive issue of immigration enforcement actions, Fiddelke emphasized safety as the company’s priority. “When I think about navigating the start of the year here, especially in our hometown in Minneapolis, the thing that we have kept front and center every single day is the safety of our team. And so the safety of the team and the safety of our guests has been our North Star for decision making.”

While not specifically addressing whether Hispanic customers have pulled back from shopping at Target during immigration crackdowns, Fiddelke acknowledged the company’s overall performance has been below expectations.

Operating in today’s politically charged environment presents additional challenges, but Fiddelke remains focused on what the company can control. “The best thing for us to do is always focus on a clear strategy. Control what we can control,” he said. “Over the past several years, there’s been a lot of volatility to manage in the environment. There’s a lot that falls into the we-can’t-control-it bucket.”

As he visits stores across the country, Fiddelke says he’s finding a workforce eager for success. “If I had to characterize what I’m hearing from the team, it’s a team that’s hungry to win. There’s so much pride in Target and there’s so much excitement to get this company back to growth.”