Target names new CEO as it tries to break out of sales slump

Target on Wednesday named a new CEO, Michael Fiddelke, the company’s chief operating officer and a 20-year company veteran, who said improving the retail giant's sputtering finances was “urgent” as he prepared to step into the top job.

- KAILYN RHONE

The company made the announcement as it reported second-quarter results, which were better than analysts expected, and an improvement from the previous quarter. Target still showed a drop in foot traffic and in the amount shoppers spent per visit. Same-store sales fell 1.9% last quarter and profit declined around 20%, in part because of markdowns to move merchandise, the company said.

Target reaffirmed its forecast for a “low-single digit” decline in sales this year. Its stock dropped Wednesday.

Mr Fiddelke will become Target's CEO in February, and the current leader, Brian Cornell, will shift to executive chair. “I step into the role with an urgent commitment to drive growth and deliver better results,” Mr Fiddelke said in a statement, adding that he would push the company to “embrace change with pace and purpose.”

His top three priorities will be to bring back focused merchandising, “elevate” the customer experience and use technology to make the business more efficient, he said on a call with analysts.

But some analysts noted that an external hire would have bought Target a fresher view.