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Starting as a summer intern while still in business school and rising through the ranks to COO, Michael Fiddelke has spent over two decades working for the US big-box retailer Target.
Last month, he was tapped to succeed Brian Cornell, who is retiring after 11 years leading the company.
Fiddelke’s celebration did not last long. Following the CEO announcement, which coincided with the news that sales in the second quarter had fallen for the third consecutive quarter, investors sent the company’s shares down 6.3%. Analysts were equally unimpressed, arguing that Fiddelke’s promotion signaled a commitment to existing strategies over the bold, strategic overhaul Target needs.
Not long ago, Target was seen as a growing threat to larger peers such as Walmart and Amazon. Today, it grapples with stagnant sales, declining market share, and mounting consumer dissatisfaction. Customers have complained of messy and understocked stores, high prices, and products that no longer capture the stylish, albeit budget-friendly, appeal that was once the retailer’s hallmark.
During the Covid-19 pandemic, Target enjoyed a surge in sales driven by strong demand for home goods, office supplies, and everyday essentials as Americans spent more time indoors. By 2022, the momentum had faded. Excess inventory collided with inflation, prompting shoppers to scale back on discretionary purchases.
Social controversies have further complicated Target’s position. Backlash over Pride Month merchandise and cutbacks to corporate diversity, equity, and inclusion programs have alienated conservative and progressive consumers alike. The company’s stock has fallen roughly 60% from its 2021 peak.
Fiddelke, 49, grew up in a small agricultural town in Iowa, where his family farmed and ran local businesses. He earned an engineering degree at the University of Iowa, worked at Deloitte, and completed a business degree at Northwestern University.
He takes the helm at Target on Feb. 1. On day one, he will have to contend with operational and tariff-related cost pressures and a rapidly changing retail landscape. He must keep prices in check, expand the retailer’s roughly 2,000-store footprint, and restore financial performance, all while winning back both consumer trust and investor confidence. Whether Fiddelke’s decades-long tenure at Target and accumulated institutional knowledge will prove an asset or a liability remains to be seen.
