Target’s New CEO Aims to Rebuild Shopper and Staff Trust, Bloomberg Reports
Target Corp has appointed Michael Fiddelke as its new CEO, effective February 2024, following Brian Cornell’s expected retirement. Fiddelke, an insider within the company, aims to regain trust with both shoppers and employees, which has reportedly been lost.
Restoring Trust Amid Challenges
In his inaugural address to staff, Fiddelke acknowledged that the company had not clearly communicated its identity, leading to confusion among customers and employees. He stated, “We weren’t clear enough about who we are as a company,” highlighting the need for improvement.
Corporate Restructuring and Job Cuts
- Fiddelke previously announced 1,800 corporate job cuts, marking Target’s first significant layoffs in nearly a decade.
- The retailer has been experiencing a prolonged sales slump, compounded by the fallout from shifting diversity initiatives.
The urgency to address these issues has prompted a renewed focus on enhancing merchandising and the overall store experience. According to a company spokesperson, accelerating growth is the primary focus for the business.
Impact on Key Demographics
Target’s unclear messaging has negatively affected its relationship with consumers, particularly among Black shoppers. Fiddelke expressed concern over the challenges the retailer faced last year and emphasized the ongoing efforts to reconnect with lost customers.
The hiring of Fiddelke comes at a critical time for Target as it seeks to navigate these significant challenges and rebuild its reputation in the retail landscape.
