In this articleTGTFollow your favorite stocksCREATE FREE ACCOUNTPeople walk by a Target store in midtown Manhattan in New York City, March 21, 2025.Kylie Cooper | ReutersWhen Target’s new CEO Michael Fiddelke steps into the role in early February, he will inherit a company facing slumping sales, faltering customer loyalty and skeptical investors.Its fiscal second-quarter results posted Wednesday illustrated the big-box retailer’s key challenges. Sales fell again from the year-ago period. Customer traffic declined. And shoppers spent less on average during their trips to Target’s website and stores than a year ago.Fiddelke, announced Wednesday as Target CEO Brian Cornell’s successor, will soon lead the retailer’s comeback efforts and will have to show he can revitalize a company where he has spent about two decades. On an earnings call Wednesday, he acknowledged Target is falling short, but described his long run with the retailer as “an asset” and said he knows what Target can be at its best.”I know we’re not realizing our full potential right now, and so I’m stepping into the role with a clear and urgent commitment to build new momentum in the business and get back to profitable growth,” he said.Though Fiddelke is not yet in the role, he said Target isn’t waiting until his starting date in February to make changes. He pledged to move with urgency to get the company back to sales growth. And he laid out his top three priorities, saying he would focus on winning back Target’s reputation as a strong merchant, enhancing the customer experience at stores and using technology to improve its business.Target’s Chief Operating Officer Michael Fiddelke will take over as CEO from Brian Cornell.Courtesy of TargetOn Wednesday, Target said it had fresh evidence that its turnaround efforts are already bearing fruit. The company’s sales improved from the first quarter to the the second quarter, Fiddelke said, even though they were negative year over year. Sales trends in all six of Target’s key merchandise categories improved from the previous quarter, he said. And the retailer got better at fighting out-of-stocks, with the best on-shelf availability of items that it has had in years, he said.It appears it will take more change to appease Wall Street, though. The second-quarter results extended a rocky several years for Target, which has tested the faith of many investors. Target’s market value has fallen from a high of $129 billion in 2021 to about $45 billion on Wednesday.The 49-year-old Fiddelke rose through the Target ranks after starting as an intern. He has held positions across merchandising, finance, operations and human resources, including a recent stint as chief financial officer and his current role of chief operating officer. He also got tapped to lead the Enterprise Acceleration Office, a new effort that Target announced in May to kickstart its turnaround.Yet Targets decision to hire the insider Fiddelke, instead of an external candidate, got a chilly reception. Investors responded to the pick with a stock selloff on Wednesday.Shares fell more than 6% on Wednesday, bringing its losses so far this calendar year to about 27%. That trails well behind the more than 8% gains of the S&P 500 during the same period.Wall Street had favored an outsider for the job, according to a J …
