Target CEO Resigns: Can Michael Fiddelke Turn the Retailer Around?
Target Corporation is entering a new era of leadership. After a decade at the helm, CEO Brian Cornell announced his resignation in 2025, marking the end of a transformative but turbulent chapter for the retail giant. Cornell will be succeeded by Michael Fiddelke, Target’s Chief Operating Officer and a longtime company insider.
The move comes as Target struggles with slowing sales, stiff competition, and investor concerns about the retailer’s direction.
Brian Cornell’s Decade of Leadership
When Cornell joined Target in 2014, the company was still reeling from a disastrous data breach and a failed expansion into Canada. Over the next 10 years, he reshaped the business through store remodels, improved supply chains, and digital growth initiatives. Cornell championed same-day delivery through Shipt, curbside pickup, and a strong private-label portfolio, which helped Target win back customers and compete against Walmart and Amazon.
But recent years brought challenges. Inflation weighed on shoppers’ budgets, supply chain disruptions led to excess inventory, and Target faced public backlash over its handling of political and cultural issues. While Cornell is credited with steering the company through tough times, Target’s momentum has slowed. In the past 12 months, its share price fell by nearly 18%, reflecting Wall Street’s unease.
Who Is Michael Fiddelke?
Fiddelke, who has been with Target for more than 20 years, is widely regarded as a strategic operator with financial discipline. He previously served as Chief Financial Officer before being promoted to COO in 2023. Known for his deep understanding of Target’s cost structures, Fiddelke played a major role in the company’s pricing strategies and expense control.
Analysts note that his insider status signals continuity rather than a shake-up. This could reassure employees and suppliers, but some investors worry it means Target may not bring the fresh perspective needed to tackle new challenges.
An excited from Michael Fiddelke from his official LinkedIn account, in which he discusses how the growth of Target and outstanding customer experience will be his aim.
Can Fiddelke Bring the “Tarzhay” Magic Back?
Target has made attempts to reignite customer interest. The retailer launched new affordable private-label collections and thousands of low-price items, starting at $1, to draw in cost-conscious shoppers.
Fiddelke’s challenge now is to build on these wins and ensure they work at scale, improving retail execution while making Target feel vibrant again.
Market Reaction to the Leadership Change
The announcement of Cornell’s resignation sent Target shares down 6% in early trading, reflecting investor uncertainty. Wall Street analysts were split: some praised the smooth succession plan, while others flagged concerns about whether Fiddelke can restore growth.
“Target has been caught between value-focused Walmart and convenience-driven Amazon,” one retail analyst told CNBC. “Fiddelke will need to prove he can sharpen the company’s positioning in a crowded market.”
How’s Target Performing Now?
Target reported mixed results: second-quarter same-store sales fell 1.9 percent, though this beat the expected 3 percent decline. Net sales reached $25.21 billion, topping estimates, and earnings per share came in at $2.05. Margins, however, shrank due to deeper discounts and operational costs.
While store traffic improved and average spend per visit held up better than before, margins remain under pressure from tariffs, markdowns, and weak discretionary spending.
The Retail Landscape: A Fierce Battle
Target faces an uphill battle in today’s retail environment. Walmart continues to dominate with low prices and grocery leadership, while Amazon is capturing consumer spending through Prime membership and rapid delivery. Meanwhile, Costco’s membership model is proving resilient even during inflationary pressures.
Target, by comparison, has struggled with traffic declines and margin pressures. Despite heavy investments in e-commerce, its digital sales growth has slowed. Fiddelke’s challenge will be balancing affordability with Target’s reputation for style and quality.
The Consumer Trust Factor
Beyond Wall Street, customer loyalty remains Target’s most valuable asset. Shoppers have long seen Target as a retailer that blends affordability with a more curated, fashionable experience. However, in recent years, the brand has faced mixed perceptions, especially after controversies around its product lines and marketing strategies.
Rebuilding trust and reigniting shopper enthusiasm will be crucial. If Fiddelke can connect with both budget-conscious families and younger digital-first shoppers, he could restore Target’s cultural relevance.
Governance and Succession Planning
Some governance experts praised the board’s orderly succession plan, noting that sudden leadership changes often rattle markets. By promoting Fiddelke, Target signaled confidence in its internal talent pipeline.
Still, questions remain: Was an insider the best choice? Or would an external leader have brought the disruptive vision needed for Target to reset its strategy? The coming quarters will reveal whether continuity strengthens or hinders Target’s ability to adapt.
Public Reaction and Social Media Buzz
The leadership shake-up sparked strong reactions across social media. Some praised Cornell’s contributions, while others expressed skepticism about Fiddelke’s ability to change course.
@ArchangeAntoine: “Target’s appointment of Fiddelke signals continuity, not revolution. Can he break the cycle?”
@StockMKTNewz: “Target stock sinks after internal CEO pick. Investors wanted fresh leadership.”
@CBSEveningNews: “Struggling Target names insider as new CEO, Wall Street reacts with a sell-off.”
The conversation reflects broader doubts: while Target has avoided crisis-level disruption, it hasn’t delivered the growth shareholders expect.
What Success Will Look Like Under Fiddelke
For Fiddelke, success will mean:
- Stabilizing sales growth and regaining market share lost to Walmart and Amazon.
- Restoring investor confidence by hitting profitability targets and improving margins.
- Rebuilding consumer excitement through innovative product lines and competitive pricing.
- Strengthening e-commerce to compete with digital-first rivals.
If he can achieve these, Target could reclaim its position as a retail innovator. If not, the company risks being seen as a mid-tier retailer squeezed between giants.
Why Investors Are Skeptical
Despite Fiddelke’s deep experience within Target, analysts expressed concern. Investors had hoped for an external hire who could bring fresh ideas and shake up Target’s stagnant performance. The internal appointment has raised worries about continued groupthink and whether meaningful change can come from within.
As Neil Saunders of GlobalData puts it, “this may be an internal appointment that does not necessarily remedy the problems of entrenched groupthink.”
Outlook
The resignation of Brian Cornell marks the end of an era for Target. While his legacy includes rescuing the retailer from past crises, the road ahead is uncertain. Michael Fiddelke, with his financial expertise and deep company knowledge, has the tools to lead, but he will need a bold vision to reignite growth in an unforgiving retail landscape.
For now, both Wall Street and Main Street are watching closely. The next 12–18 months will determine whether Target’s leadership change is a turning point or another chapter in its struggles.
FAQ’S
Brian Cornell stepped down as Target’s CEO after leading the retailer for over a decade, saying it was the right time for new leadership as the company faces challenges in sales and strategy.
Michael Fiddelke is Target’s new CEO. He has been with the company for more than 20 years, serving in multiple leadership roles, including Chief Financial Officer and Chief Operating Officer.
The new CEO of Target is Michael Fiddelke, a longtime insider who has been chosen to succeed Brian Cornell.
Michael Fiddelke holds an MBA from Northwestern University’s Kellogg School of Management and has a strong background in finance and operations.
Many shoppers have recently avoided Target due to rising prices, reduced product variety, and controversies affecting the company’s brand image.
No, Brian Cornell was not fired. He voluntarily stepped down, and Michael Fiddelke was appointed as his successor.
Disclaimer
This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.