Target CEO Brian Cornell will resign in February as the company faces declining sales and will be replaced by COO Michael Fiddelke.
Fiddelke was chosen for the position from a “Strong list of external and internal candidates,” Cornell said in a call, CNN reported. Cornell noted that the incoming CEO is the “right candidate to lead our business back to growth.”
“I’ve seen how our business can perform when we’re at our best, and therefore where we also have clear opportunities today to improve our performance, and we must improve,” Fiddelke said in the call reported by Axios. “I know we’re not realizing our full potential right now, and so I’m stepping into the role with a clear and urgent commitment to build new momentum in the business and get back to profitable growth.”
The shift comes as Target’s second-quarter earnings report showed a decline of 1.9% from a year ago.
Earlier this year, Target scaled back its diversity, equity, and inclusion (DEI) policies.
Target’s “Belonging at the Bullseye Strategy” stated that the company is ending its “three-year diversity, equity and inclusion goals” and its “Racial Equity Action and Change (REACH)” initiatives. It is further halting its “external diversity-focused surveys, including HRC’s Corporate Equality Index.”
The “Supplier Diversity” team will evolve to “Supplier Engagement” to “better reflect our inclusive global procurement process across a broad range of suppliers, including increasing our focus on small businesses,” Target said.
“Throughout 2025, we’ll be accelerating action in key areas and implementing changes with the goal of driving growth and staying in step with the evolving external landscape. We will continue to monitor and adjust as needed,” the strategy added.
