Target Appoints New CEO Amid Investor Skepticism

Target shares tumbled 6% following the announcement of Michael Fiddelke as incoming CEO, reflecting market disappointment in the internal succession plan. Investors had overwhelmingly favored an external hire to revitalize the retailer's strategy, according to a Mizuho survey.

Fiddelke inherits multiple challenges: Target's e-commerce capabilities lag behind competitors, tariff exposures remain unmitigated, and Core customers perceive a decline in the chain's distinctive merchandising appeal. The company's stock has shed over 25% year-to-date, underperforming the broader market.

Analysts note the appointment signals continuity rather than transformation. JPMorgan observed the market had priced in expectations for a change agent, with Fiddelke's two-decade tenure at Target now viewed as a potential liability amid evolving retail dynamics.