Fiddelke, Target’s chief operating officer, has been with the company for more than two decades in many different departments and leadership positions. For most of 2024, he served as CFO and COO concurrently, and in May, the company said Fiddelke would lead an “enterprise acceleration office” to drive speed and agility across the company by simplifying cross-company processes and using technology and data in new ways.
The company made the announcement before its second-quarter earnings call Wednesday morning. Fiddelke will take the role in February 2026, with current CEO Brian Cornell becoming executive chair of the board of directors. This comes after several underwhelming quarters with declining or near-flat sales year over year. The second quarter was no exception: While net sales improved from the first quarter, they were still down 0.9% year over year.
“I’ve seen how our business can perform when we’re at our best, and therefore, where we also have clear opportunities today to improve our performance — and we must improve,” Fiddelke said on the company’s second-quarter earnings call Wednesday morning. “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.”
Analysts doubt whether Fiddelke will reinvent the wheel enough to get the company back on track, being a longtime Target insider rather than an external hire. “We are unsure of how Mr. Fiddelke will change the strategy he helped create,” wrote Joseph Feldman, senior managing director and assistant director of research for Telsey Advisory Group.
During the call with investors, Fiddelke outlined his three priorities in achieving growth and in reinforcing what he believes makes Target special.
Priority 1: Reestablish Target’s distinct ‘merchandising authority’
Fiddelke said Target needs to “reclaim its merchandising authority,” as one of Target’s most critical attributes is having industry-leading style and design.
“As you’ve seen over the last few years, even when overall results have fallen short of our aspirations, we’ve shown how strongly our guests respond when we offer the right blend of quality, value and style not seen anywhere else in the market,” Fiddelke said.
He said, to do so, the retailer needs to make sure it’s bringing this authority across each category in its business throughout the year.
“That will require change, and that change is happening,” Fiddelke added, noting that the company has already begun reshaping its hardlines assortment — now called “Fun 101.” “We’re already seeing positive comps and traffic growth in these categories, all from leaning into style and culture in much the same way we’re known for in our apparel assortment.”
The hardlines segment is up more than 5% in Q2, according to Rick Gomez, Target’s chief commercial officer. This has included leani