Target picks insider as next CEO to lead turnaround

Target Corp. named veteran Michael Fiddelke as its next chief executive, betting that the insider will revive the storied retailer struggling with weak sales.

- By JAEWON KANG AND CHARLES GORRIVAN

MICHAEL FIDDELKE, the current chief operating officer, will be the next chief executive for Target Corp.

The company said Wednesday the board unanimously elected Fiddelke, who currently serves as chief operating officer, to be CEO starting in February. He will also join Target's board, while current CEO Brian Cornell, who has led the big-box retailer since 2014, will transition to focus on his role as executive chair.

Target shares slumped after the announcement, an indication that Wall Street had been hoping for an outsider to take over the company’s leadership.

Fiddelke, who started as an intern at Target in 2003, faces the immediate challenge of reversing an extended streak of weak performance and the loss of market share to competitors such as Walmart and Amazon.

His priorities include sharpening the company’s focus on merchandise style and design while improving the shopper experience and streamlining operations with technology.

“I’m stepping in with urgency to rebuild momentum and return to profitable growth,” Fiddelke, 49, said on a call with reporters. “I've seen us at our best and I've seen us when we are not at our best, and that informs my candid assessment of today where we have work to do.”

The company's slump persisted in the fiscal second quarter that ended Aug. 2 with contractions in revenue and comparable-store sales, which measures results at locations open for more than 13 months. Both declines were less than the market expected, however, according to the average of estimates compiled by Bloomberg.