Meet Target’s incoming CEO, who worked his way up after starting as a finance intern
Target Corporation has announced that Michael Fiddelke will be stepping into the role of CEO starting February 1, 2024, succeeding Brian Cornell, who has led the company since 2014. Fiddelke’s journey with Target began in 2003 as a finance intern, and over the past two decades, he has climbed the corporate ladder, holding various positions in merchandising, finance, and human resources, ultimately serving as the Chief Operating Officer and Chief Financial Officer. This internal promotion highlights a trend of companies opting for familiar faces from within their ranks, especially in challenging times for the retail sector. Fiddelke’s deep understanding of Target’s operations and culture, combined with his extensive experience, positions him as a well-prepared leader to navigate the company through its current challenges.
Fiddelke hails from Iowa and has a background in industrial engineering from the University of Iowa, complemented by an MBA from Northwestern University’s Kellogg School of Management. His early career included a stint at Deloitte before he joined Target, where he has since developed a comprehensive grasp of the business. As COO, he oversaw nearly 2,000 stores and was instrumental in managing the company’s supply chain and fulfillment services. With a keen focus on revitalizing Target’s growth trajectory, Fiddelke has laid out a three-part strategy that includes enhancing the shopping experience, increasing capital expenditures for store renovations, and leveraging technology through partnerships, such as the collaboration with OpenAI to integrate Target’s shopping app into ChatGPT.
Despite the optimism surrounding Fiddelke’s promotion, analysts remain cautious about whether an internal hire can effectively address the challenges Target faces, especially as consumer preferences shift towards budget-friendly alternatives like Walmart. Fiddelke acknowledges these challenges and has expressed a commitment to restoring Target’s growth as swiftly as possible. His proactive approach is evident in his leadership during the third-quarter earnings call, where he emphasized the need for improvement and outlined plans to invest significantly in store upgrades and technology enhancements. As he prepares to take over the helm, Fiddelke’s blend of experience and fresh perspective could be crucial in steering Target towards a more prosperous future.
Michael Fiddelke is Target’s new CEO.
Elizabeth Flores/The Minnesota Star Tribune via Getty Images
Michael Fiddelke will be Target’s new CEO, starting February 1.
He joined the company as a finance intern in 2003 and has been with the company ever since.
He previously worked in merchandising and HR, and has been CFO and COO.
Target’s new CEO,
Michael Fiddelke,
is the latest intern to rise to the top job.
The retailer announced in August that Fiddelke — currently the chief operating officer — would succeed Brian Cornell on February 1, more than two decades after Fiddelke joined as an intern.
“I’ve been fortunate to serve in a broad range of roles and functions over my 20 years here,” Fiddelke said at the time. “I’ve learned from every one of these experiences, with each giving me a deeper appreciation for the specific ways that Target is special and strategically distinct in a crowded retail landscape.”
Fiddelke, 49, grew up in Iowa, where his first job was waking up before dawn to do chores on the family farm. After graduating from the University of Iowa with a degree in industrial engineering in 1999, he got a job with Deloitte.
He later left his role at the
Big Four firm
to pursue an MBA at Northwestern University’s Kellogg School of Management, during which he joined Target as a finance intern.
He got his first permanent position as an analyst in the financial unit in 2004.
Since then, he’s worked for Target’s merchandising, finance, operations, and human resources. He was chief financial officer from 2019 to 2024, when he became chief operating officer.
Michael Fiddelke
Target
In that job, Fiddelke was tasked with overseeing
Target’s nearly 2,000 stores
throughout the US, including leading its global supply chain network, fulfillment services, network capacity planning, enterprise operations, and delivery services.
In addition to his corporate responsibilities, Fiddelke sits on the boards of the Minnesota Children’s Museum and Shipt, a personal shopping and delivery service owned by Target.
When the company announced its
first-quarter results
in May, it said Fiddelke would lead a “multi-year Enterprise Acceleration Office” tasked with delivering $2 billion of efficiencies across the company, which has lost out to rivals as more customers have shifted to budget alternatives like Walmart.
Fiddelke said in August that his work with the acceleration office has given him a fresh perspective on where the company is now and how it needs to grow.
Addressing a group of summer interns two months ago, Fiddelke’s advice was, “Be relentlessly curious. Slow down and ask questions. Embrace feedback. And make the most of the moment by making connections at Target and with your fellow interns.”
Fiddelke says his top priority is getting Target ‘back to growth as quickly as possible’
In the quarter following his announcement, Fiddelke has wasted no time setting in motion several key strategies aimed at improving the company’s performance.
Even though he won’t officially assume the role until February 1, when CEO Cornell steps down, Fiddelke led
Target’s third-quarter earnings
call.
“We’re far from satisfied with our current results, and we won’t be satisfied until we’re operating at our full potential,” he said.
On the call, he said Target will increase its annual capital expenditures from $4 billion to $5 billion to invest in remodeling and refreshing its store fleet, including the biggest changes to its merchandise assortment and floor plans that the company has seen in nearly a decade.
The company also announced a partnership with OpenAI to include a Target shopping app in ChatGPT that will allow shoppers to order multiple items for pickup or delivery using simple conversational language.
In addition, Fiddelke led the testing of a new way for stores in a common geography to fulfill e-commerce orders, which rolls out to 35 more markets this year.
The moves are part of Fiddelke’s three-part strategy to
get Target back on track
, including a renewed focus on a “style and design North Star,” an elevated and consistent shopping experience, and stronger investments in technology throughout the organization.
Analysts have been skeptical that an internal CEO hire would address Target’s persistent problems, as well as the highly influential role that Cornell could play as executive chairman.
Cornell told the analyst call on Wednesday that he is focused on supporting Fiddelke’s transition.
“While we’re not there yet, I’m confident we’re on the right path, and Michael is the right person to lead the next chapter of Target’s growth,” he said.
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