Beginning as a summer trainee when he was still in business schools and rose in the ranks of COO, Michael Fiddelke spent more than two decades working for the target of the American retailer.
Last month, he was used to succeed Brian Cornell, who retired after 11 years at the head of the company.
The celebration of Fiddelke did not last long. Following the announcement of the CEO, which coincided with the news that the second quarter sales had dropped for the third consecutive quarter, investors have reduced the company’s shares. Analysts were also not impressed, arguing that the promotion of Fiddelke reported a commitment to existing strategies on the target and strategic revision needs.
Not long ago, Target was considered a growing threat to larger peers such as Walmart and Amazon. Today, he is struggling with stagnant sales, a drop in market share and consumer dissatisfaction. Customers have complained of disorderly and subclassified stores, high prices and products that no longer capture the elegant attraction, although for the budget, which was once the brand of the retailer.
During the Covid-19 pandemic, Target experienced sales motivated by a high demand for home goods, office supplies and everyday essential elements while Americans spent more time inside. By 2022, the momentum had faded. An excess inventory collided with inflation, encouraging buyers to fall back on discretionary purchases.
Social controversies have further complicated Target’s position. The reactions on the goods of the month of pride and the reductions of the programs of diversity, equity and inclusion of companies have alienated conservative and progressive consumers. The actions of the company fell by around 60% compared to its peak of 2021.
Fiddelke, 49, grew up in a small agricultural town in Iowa, where his family cultivated and managed local businesses. He obtained an engineering diploma at Iowa University, worked at Deloitte and obtained a trade diploma at the Northwestern University.
He takes the bar in Target on February 1. On the first day, he will have to deal with operational cost pressure and rates and a retail landscape in rapid development. He must keep prices under control, extend the imprint of around 2,000 retailer stores and restore financial performance, while winning consumer confidence and investor confidence. It remains to be seen whether the institutional knowledge of Fiddelke lasted decades in Target and accumulated institutional knowledge.