Target COO Michael Fiddelke will succeed Brian Cornell as the next CEO, the company announced Wednesday morning. It was a unanimous decision by the board.

“We need to reclaim our merchandising authority,” Fiddelke said on Target’s second quarter earnings call Wednesday while expressing gratitude for Cornell’s mentorship. The transition, effective Feb. 1, includes a new role for Cornell, who was CEO for 11 years and will become executive chair. 

The news comes just as the Minneapolis-based retailer released its Q2 earnings report, revealing a continued decline in sales.

Fiddelke addressed the slump head on. “We have some work to do, and we will address it with candor and urgency. I’m not waiting until February. Growth is the only path forward.”

Fiddelke outlined three key priorities:

1. Reestablishing merchandising authority, leading with style and design. “We’re merchants at heart,” he said.
2. Elevated shopping experience
3. More fully using technology to improve guest experience

The announcement confirmed speculation the pick would, indeed, be Fiddelke. A Target veteran of more than 20 years, he previously served as CFO and started at the company as an intern. The company said in its announcement that Fiddelke has been “instrumental in building many of the company’s core strengths, holding leadership roles across merchandising, finance operations, and human resources.” It adds that he has overseen investments in stores, supply chain, and digital capabilities, in addition to “enterprise efforts” securing $2 billion in “efficiencies.” Recently, Fiddelke took charge of Target’s Enterprise Acceleration Office, a new initiative to streamline operations and technology. The company announced the office the same day as its Q1 earnings call, which acknowledged unsatisfactory performance.

Target shares immediately tumbled 10% in premarket trading with the CEO announcement. Analysts questioned whether the appointment of a longtime insider is enough to reinvigorate the retailer, which has fallen behind competitors. Fiddelke addressed this criticism.

“There’s real power in drawing on 20 years of knowing what makes Target, Target—knowing who we are in retail and how that centers on style and design,” Fiddelke said. “We win through incredible product, amplifying trend across the business.”

Home goods and hardlines, which includes appliances, sporting goods, and other larger purchases, are two areas the company expressed particular urgency to reinvigorate. Fiddelke also addressed complaints that have been growing louder in recent months, such as around empty shelves. “Key items should never be out of stock,” he said, adding that Target is diversifying production around the world to combat both tariff and supply issues.

Target has been slow to bring its headquarters team back to office—which some analysts and employees have pointed to as a cause for its sub-par performance. Fiddelke didn’t make any sweeping statements but said, “The team should be working in person more often.”

Target’s lead independent board director Christine Leahy expressed confidence in Fiddelke’s appointment.  “It is clear that Michael is the right leader to return Target to growth, refocus and accelerate the company’s strategy, and reestablish Target’s position as a leader in the highly dynamic and fast-moving retail environment.” She noted he comes with a “base of strong team trust” and a willingness to challenge the status quo.

Under Cornell, she continued, “Target has become a $100-plus billion company, with revenues increasing by $34 billion in 11 years.” As career highlights, she noted Cornell’s pioneering of the “stores-as-hub” strategy, whereby stores serve as pickup and delivery sites; private-label development; and digital growth.

Target’s net sales in Q2 were almost 1% lower than they were in 2024, at $25.2 billion. Comparable store sales were down 3.2%. Digital comparable sales continued to grow, at 4.3%. And operating income, at $1.3 billion, was 19.4% lower than last year.