Target Bets on Insider Michael Fiddelke as New CEO to Revive Struggling Retail Giant

Target is turning to one of its own to try to get back in shoppers’ good graces.

The Minneapolis-based retailer announced Wednesday that longtime executive Michael Fiddelke, currently Target’s chief operating officer, will take over as CEO on Feb. 1, 2026. He replaces Brian Cornell, who’s stepping down after more than a decade at the helm but will stay on as executive chairman of the board.

Fiddelke, 49, isn’t new to Target’s red bullseye. He started as an intern two decades ago and has worked his way through leadership roles in finance, operations, merchandising, and HR. He was CFO in 2019 before moving into the COO seat last year. Now, he’s being handed the tough job of steering Target out of a years-long slump.

“This business must improve,” Fiddelke told reporters. “I’ve seen Target at its best and when it’s struggled, and my goal is simple: get us back to growth.”

Target’s sales have been flat for years after a massive pandemic boom, and its stock is down roughly 60% since its 2021 peak. Just this year, shares have slid another 22%. Customers and former employees say the brand has lost some of its sparkle — stores feel less polished, the once “cheap-chic” merchandise has dulled, and rivals like Walmart and Amazon are outpacing it.

Cornell, who took over in 2014, earned praise early on for reviving Target with remodeled stores and digital investments. But the past few years have been rocky:

• Inventory missteps left the chain with piles of unsold goods.
• Backlash erupted after Target scaled back its diversity and inclusion programs, sparking protests from both sides of the debate.
• Tariffs and inflation have squeezed costs, making Target’s mostly discretionary product mix harder to sell.
• A once-promising Ulta Beauty partnership will fizzle out in 2026.

Target’s board spent years searching outside the company, but ultimately stuck with a veteran insider. That move disappointed some investors who were hoping for fresh ideas. Shares tumbled about 10% after the news.

“This internal appointment doesn’t necessarily fix the groupthink problem at Target,” said Neil Saunders, a retail analyst with GlobalData. “Target has lost its grip on the American shopper.”

Christine Leahy, Target’s lead independent director, defended the pick, saying Fiddelke combines institutional knowledge with “fresh eyes” and isn’t afraid to challenge the status quo.

Fiddelke laid out three top priorities:

1. Bring back Target’s reputation for stylish, unique merchandise.
2. Deliver a more consistent shopping experience in stores and online.
3. Lean harder on tech to make operations smoother and more efficient.

He also teased an initiative called “Fun 101,” which aims to quickly roll out trendy home goods and electronics.

But he faces steep challenges. Target expects another sales decline in 2025, and competition from Walmart, Costco, and Amazon is only getting tougher.

Still, Fiddelke sounded optimistic:

“We’ve got a strong foundation. Now the work is to build on it and get back to being America’s favorite retailer.”

With input from CNBC, CNN, and FOX Business.