AN iconic retailer has announced a milestone change on Wednesday morning, marking a major u-turn in course for the first time in 11 years.
As Target rolls out the paramount structural change, loyal shoppers will see the impacts of the revamp take hold in the next few months.
Target announced a major change that shoppers will see take hold in the next few months[/caption]
Target, a major player in the retail industry, has a vital leadership change in the works, swapping out its top boss at the start of the 2026 fiscal year.
Brian Cornell, the current CEO since 2014, will be officially succeeded by company COO Michael Fiddelke, Cornell revealed at Target’s second quarter 2025 earnings conference call.
“Today’s announcement is an important milestone in the history of our company and I’m confident Michael is the right candidate to lead our business back to growth,” said Cornell.
As the new leader takes on his role, Fiddelke intends to strengthen the Target brand, improve the guest experience, revive the company’s traffic and sales, and more via a number of initiatives, such as transforming the toys and games category.
Fiddelke has been with Target for 20 years and is being moved up in rank starting February 1 as the company faces challenges with declining sales and increased competition.
“Michael knows how our business can perform and what our teams can deliver when we’re at our best and he’ll bring that confidence along with an aggressive mindset for change into the CEO role,” said Cornell.
Fiddelke revealed that his top priority is getting Target back to growth, as company bosses are “far from satisfied with where our business is performing today.”
“Our performance over the last few years has not been acceptable. We have real work in front of us, and to be blunt, we need to move faster – much faster – and we are,” said the upcoming CEO.
To help the retail giant in its turnaround and “reinforce what will continue to set us apart for years to come,” Fiddelke laid out three key priorities.
1. Make Target Stand Out Again
As the upcoming CEO, Fiddelke’s first initiative is to “re-establish the company’s merchandising authority in a way that is distinctly Target.”
Rather than just being another store, the current COO wants Target to be known for its own unique style, product selection, and shopping experience.
“To re-establish our leadership here, we need to go beyond the occasional design partnership or new product launch and ensure we’re bringing this authority across each category in our business throughout the year,” said Fiddelke.
“That will require change, and that change is happening,” said the COO, giving the example of Target’s Fun 101 initiative.
He explained that Fun 101 was the name for the transformation within the hardlines category, which includes toys, video games, music and books, sporting goods, and technology.
What is Target Circle 360?
In April, Target launched its first-ever paid membership program, Target Circle 360.
For $99 a year, members get access to the following perks:
- Unlimited, free same-day delivery on orders over $35
- An extra 30 days to return your items
- Free two-day shipping on 100,000s of items
- 5% off in-store and online
- Automatic deals and exclusive partner perks
“We will transform our hardlines business, and make Target a year-round destination for everything you need to create fun moments for yourself and your loved ones,” said Rick Gomez, Target CCO, at the retailer’s fourth quarter earnings call.
Target is working to “bring greater style and cultural relevance” to the chain’s hardline assortment, Gomez shared on Wednesday morning, such as doubling down on its trading card assortment and delivering “trend forward” tech accessories such as brightly colored headphones, phone cases, and toys under $20.
2. Deliver an Elevated Guest Experience
“We’re a retailer that believes that an elevated experience is every bit as important as product,” said Fiddelke as he outlined his second key priority.
“We want guests to find a sense of joy from every trip to Target and we must do that more consistently and frequently.”
The impending CEO promised to deliver via a variety of measures, including well-stocked shelves, clean stores, friendly customer service, and an online experience that “brings inspiration and discovery.”
“We have to do better here, especially in the consistency of our experience,” admitted Fiddelke.
He shared that Target has already made progress on this front, especially in terms of stocking its shelves across the entire assortment and especially with items that “should never be out of stock.”
Target’s on-shelf availability metrics in the second quarter were the best the company has seen in years, Fiddelke said.
3. Take Advantage of Tech
As part of Fiddelke’s third key priority, he vowed to more fully use technology to boost Target’s speed, guest experience, and efficiency.
He shared that while technology was already at the core of all of the company’s operations, it needed to play an ever greater role going forward.
“As we continue investing in our future growth, we’ll be making key technology investments throughout our stores, supply chains, headquarters, and digital operations to power our team and our business,” said the COO.
The company aims to leverage data, automation, and digital innovation such as artificial intelligence to stay competitive and better anticipate customer needs.
Michael Fiddelke will take over as Target’s new CEO on February 1, 2026[/caption]
One of Fiddelke’s initiatives as new CEO will be transforming the hardlines category, which includes toys, video games, and more[/caption]
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