Michael Fiddelke, who was named Target Corp's new chief executive and will begin in February, told staff at his first town hall that the company has lost trust with shoppers and employees and that restoring that trust will be a priority.
"We weren’t clear enough about who we are as a company," Fiddelke said in the meeting. "When we aren’t clear enough, that confuses people. We didn’t do enough to correct that confusion in the moment."
Target did not immediately respond to a request for comment.
Fiddelke succeeds Brian Cornell, who had been expected to retire. The incoming CEO, an internal hire, had previously announced in October that the company would cut roughly 1,800 corporate positions, marking Target's first sizable round of layoffs in about a decade.
He assumes leadership as the retailer grapples with several operational and reputational challenges. Company officials are contending with a lengthy sales slump, and the firm has pulled back abruptly from wide-ranging diversity initiatives after the change in the U.S. presidential administration last year. That shift coincided with boycotts and lawsuits tied to Target's diversity, equity and inclusion practices.
Fiddelke also noted that Target's unclear stance has damaged its standing with consumers - particularly Black shoppers - and with employees. He characterized the prior year as difficult and said efforts are underway to reengage customers the company has lost.
The retailer remains dependent on sourcing from countries that were affected by broad-based tariffs imposed after the change in the U.S. presidency, a factor that continues to complicate its cost and supply considerations.
As Fiddelke takes over the CEO role, he faces the dual tasks of stabilizing performance and repairing relationships with both customers and staff while managing the fallout from past decisions and external trade pressures.
Summary
Target's incoming CEO acknowledges a loss of trust among shoppers and employees, vows to clarify the company's identity and work to reconnect with lost customers amid sales weakness, controversies over diversity initiatives, legal challenges and tariff-related sourcing exposure.