CEO of Target to depart due to persisting slump in sales

In a significant move, Michael Fiddelke, Target's current Chief Operating Officer, will take over as the new CEO of the $107 billion retail giant starting February 1, 2026. Fiddelke, who has been with the company since 2003, starting as an intern, brings a deep understanding of Target's business and a commitment to accelerating its progress.

The announcement comes at a time when Target has been grappling with sluggish sales in recent years. The company reported slow sales over a three-month period ending in August, a trend that has continued since the pandemic-era shopping boom. Target has faced challenges in growing sales and outperforming competitors in the competitive retail landscape.

The company's CEO, Brian Cornell, will step down early next year. Cornell acknowledged a "challenging retail environment" but expressed optimism about "encouraging signs of recovery." He will become the executive chair of Target's board of directors.

One of the issues that Target has been dealing with is the impact of tariff-driven price increases on shoppers. However, in a bid to stave off these increases, Chief Commercial Officer Rick Gomez stated that Target is negotiating prices with suppliers and other partners. Gomez expressed a commitment to offering everyday good value and competitive pricing.

Target's net income plunged 21% for the same period, according to the company. This decline in profitability, coupled with the drop in sales compared to the same period a year earlier, has led to a fall in the company's share price. Shares of Target fell nearly 8% in early trading on Wednesday.

The company operates nearly 2,000 stores and has been in the news recently due to a food safety concern. The Food and Drug Administration (FDA) warned the public not to eat possibly radioactive shrimp sold at Walmart, not Target. It's important to note that this issue does not directly affect Target.

In a broader context, the Supreme Court has been formally asked to overturn the landmark same-sex marriage ruling. However, this issue does not seem to have had a direct impact on Target's business operations or financial performance.

Despite the challenges, Fiddelke's appointment as CEO and the company's efforts to negotiate with suppliers offer a glimmer of hope for Target's future. As Fiddelke takes the helm, he will be tasked with steering the company through the challenging retail environment and towards a more prosperous future.