Target says COO will lead struggling company when CEO steps down in 2026

Target said Wednesday that its COO will lead the struggling company when the CEO steps down in February 2026.

Target CEO Brian Cornell, 66, helped reenergize the company after when he took over in 2014, but has struggled to turn around weak sales since the COVID-19 pandemic, according to the Associated Press. COO Michael Fiddelke, a 20-year company veteran, will succeed Cornell, who will transition to executive chairman of the board.

In September 2022, the board extended Cornell's contract for three more years, and eliminated a policy requiring its CEOs to retire at age 65.

Cornell said Fiddelke's appointment followed several years of the company's board vetting both internal and external candidates. Fiddelke overhauled Target’s supply network and expanded its stores and digital services while cutting costs.

The COO said his three priorities when he steps into the CEO job are reclaiming the company’s merchandising authority; improving the shopping experience by ensuring shelves are consistently stocked and stores are clean; and investing in technology at the company’s stores and in its supply network.

“When we’re leading with swagger in our merchandising authority, when we have swagger in our marketing, and we’re setting the trend for retail, those are some of the moments I think that Target has been at its highest in my 20 years,” Fiddelke said.

Target also reported Wednesday a 21% drop in net income in the quarter ended Aug. 2. The company’s stock was down by more than 8% in pre-market trading.

The retailer has seen flat or declining comparable sales in eight out of the past 10 quarters, including the latest period.