Target CEO Brian Cornell to Step Down, Replaced by Michael Fiddelke

Target has announced it will replace longtime CEO Brian Cornell with a company insider who joined as an intern more than 20 years ago.

The discount department store chain said Michael Fiddelke, chief operating officer and former chief finance officer, will take over on February 1 next year. He has been with the company since first joining as an intern in 2003. He has worked across merchandising, finance, operations, and human resources, the company said.

Cornell has been in charge since 2014. In 2022, the retailer threw out its traditional retirement age of 65 to allow him to stay on for three more years. He will become executive chair of the board of directors.

The appointment comes as the retailer has suffered since the pandemic, as more customers have shifted to budget alternatives. Target had a tough first quarter with falling sales and a decrease in store traffic after it decided to roll back its DEI initiatives at the start of the year.

Fiddelke said in a statement he wanted to “refocus our strategy and build on the assets and capabilities that have made Target a beloved destination for incredible products and a one-of-a-kind shopping experience.”

“And to be clear, we have work to do to reach our full potential,” he added.

Target announced Cornell’s departure as it reported its second-quarter earnings results. Sales were $25.2 billion, almost 1% down year-on-year, but above Wall Street expectations of $24.93 billion.

The company’s stock was down nearly 10% in premarket trading as of 7.30 a.m. Wednesday.

The Minneapolis-headquartered company maintained its expectation of a low-single-digit decline in sales for 2025.

Analyst Neil Saunders, managing director of GlobalData, said the earnings showed “the hallmarks of a retailer not living up to its potential.”

He added he had “mixed feelings” about Fiddelke’s appointment.

“While we think Fiddelke is talented and has a somewhat different take on things compared to current CEO Brian Cornell, this is an internal appointment that does not necessarily remedy the problems of entrenched groupthink and the inward-looking mindset that have plagued Target for years,” Saunders added.

In a note, Japanese banking giant Mizuho’s US arm praised Fiddelke’s “impressive” background at the company.

But the note added, “As indicated by the pre-market move in shares, we and the investment community preferred an external candidate to bring wholesale change to Target.”

This is a developing story. Check back for updates.