Target (TGT) Stock Plunges 7% as Insider CEO Pick Disappoints Wall Street

Target Corporation's stock tumbled 7% following the announcement of Michael Fiddelke as the incoming CEO, replacing Brian Cornell. The market reaction underscores Wall Street's preference for external leadership to address the retailer's persistent sales decline.

Fiddelke, a 20-year company veteran and current COO, faces immediate pressure to reverse nine quarters of sales declines in 11. Analysts like Stacey Widlitz of SW Retail Advisors criticized the insular appointment, while former Target vice chairman Gerald Storch questioned the board's risk appetite during a critical turnaround period.

The transition comes as Target's stock has underperformed retail peers, with early trading losses reaching 8% before stabilizing. Fiddelke's operational experience now confronts the ultimate test of translating internal knowledge into shareholder value.