Target Names Insider Michael Fiddelke as New CEO, Succeeding Brian Cornell Who Led Retailer Since 2014

Retail giant shakes up leadership—promotes from within while Wall Street yawns.

THE INSIDER GAMBIT

Target just handed the keys to Michael Fiddelke, a company veteran who's been climbing the corporate ladder since... well, forever. Brian Cornell exits after an 11-year run that saw Target evolve from big-box retailer to e-commerce contender.

SHUFFLING DECK CHAIRS

Because nothing says 'innovation' like promoting the CFO to CEO. Fiddelke's finance background suggests Target's doubling down on cost-cutting—because clearly that's what retail needs in the age of digital disruption.

Cornell's legacy? Surviving the retail apocalypse with fewer scars than most. Now Fiddelke gets to figure out how to make Target relevant to a generation that thinks 'going shopping' means scrolling TikTok.

Another day, another corporate reshuffle—because apparently what Target really needed was another suit who knows how to read a balance sheet. How revolutionary.

The Target backstory

Somewhat lost in the retailer's brutal first quarter results in May was the announcement of a new "multi-year Enterprise Acceleration Office" led by Fiddelke.

Fiddelke, who displays the same calm demeanor as Cornell, was tasked with improving operating efficiencies throughout the company, saving billions of dollars and driving faster decision making at the top. His appointment to this key position put him in the lead to succeed Cornell.

Speed is of the essence.

Target has struggled post-pandemic as shoppers lean into everyday value at Walmart (WMT), especially in food. The company has also dealt with shopper backlash to its Pride Month assortments and then revisions to its diversity, equity, and inclusion (DEI) programs.

Target has frequently been forced to adjust its guidance lower amid challenging quarterly sales and profits.

The retailer badly missed Wall Street estimates for first quarter earnings and slashed its full-year outlook. Second quarter earnings on Wednesday, while beating estimates, still plunged 20.2% from the prior year. Comparable sales fell 1.9%.

"While we're not pleased with the results, we're encouraged by the improved performance as we go into the third quarter of the year," Cornell told me.

Some on the Street have told me an outside CEO with fresh eyes WOULD be better for Target. The company wasted no time trying to counter the narrative that Fiddelke wouldn't be a change agent.

Christine Leahy, lead independent director of Target's board, said in a statement that the board selected Fiddelke after a years-long process that included an "extensive external search."

"But what sets him apart is how he combines those strengths with a 'fresh eyes' mindset, challenging the status quo to evolve how the business operates, differentiates, and delivers long-term value," Leahy said.

Target's stock was down 23% year to date ahead of the news today.

Fiddelke said he will offer up his own candid assessment of the business. Expect an early focus on better store operations, including online order fulfillment, and stronger, more surprising merchandise assortments — a Target hallmark.

"One of Brian's favorite phrases is that a pep talk starts with straight talk. I believe that too. And so we need to be focused on what it's going to take to do better," Fiddelke said.

The veteran retail lion bows out

In September 2022, Target scrapped its CEO retirement age of 65. Cornell signed on for three more years, making 2025 the year when a successor could be announced.

Cornell told me in a September 2024 interview that he takes succession planning very seriously.

"One of the things that I spend a lot of time on and have for years is investing in talent development," Cornell said. "It's one of my most important responsibilities is to make sure we're constantly developing talent to lead the company going forward."

Cornell has left quite a mark during his tenure.

His first official day at Target was on Aug. 12, 2014, after he spent time leading Walmart's Sam's Club division and crafts retailer Michaels.

As the first outsider to lead Target as CEO, Cornell came into a retailer that often missed the mark. The company had been taking heat from a data breach that impacted an estimated 40 million debit and credit cards. And prior management's dreadful foray into Canada was hemorrhaging money.

In early January 2015, Cornell announced the closure of 133 stores in Canada, less than two years after the company opened its first location in the country. Target incurred a $5.4 billion quarterly loss and laid off 17,000 workers.

Cornell went on to acquire same-day delivery service Shipt, ink deals with Disney (DIS) and Ulta (ULTA) for shops inside its stores, and remodel the chain. The company expanded its private-label offerings, food assortment, and online offerings. It also launched a paid membership program.

Despite the roller coaster of the past few years, Target's stock is still up 75% since Cornell's first day as CEO.

Now he can sit back and see if he taught his protégé enough to reawaken the retailer — just as he did more than a decade ago.

Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email [email protected].