Why Target’s CEO Succession Feels Like a Recipe for Continued Decline
Why Target’s CEO Succession Feels Like a Recipe for Continued Decline
By:Gus Downing
- This morning, Target (TGT) announced that current COO Michael Fiddelke will be promoted to CEO in early 2026.
TGT stock slid 10% on this news and is down 63% in the last four years-to-date.
This move indicates a continuation of the status quo for Target, as Fiddelke has been calling many of the shots for years.
Earnings Beat Overshadowed by Leadership Doubts
Before market open on August 20th, Target reported their Q3 earnings, beating analyst expectations for both earnings per share (EPS) and revenue by about 1%. Usually, this would be a recipe for a slight increase in share price, or, at worst, no change, but TGT opened down almost 10% this morning. The reason for this selloff can be explained in two words: Michael Fiddelke.
In addition to their standard earnings report, Target announced they are making a change at CEO, promoting current COO and former CFO Michael Fiddelke to his third and highest-ranking C-level position at the company, effective February 1, 2026. Current CEO Brian Cornell will transition to executive chair for the struggling retail giant.
Meet the Insider Target Chose to Double Down On
Fiddelke has shaped much of Target’s current direction, and one look at their stock chart will show you that so far, it has been a bad direction. He led their enterprise acceleration office and a $2 billion efficiency drive, as well as operations spanning stores, supply chain, and digital services.
Those actions, however, have yet to turn around Target’s woes, and arguably have exacerbated them. Target has seen 11 consecutive quarters of flat or declining comparable sales, widespread complaints about style, inventory management, and has radically underperformed their rivals like Walmart and Amazon post-COVID.
Why Target Needed a Reset, Not a Copy-Paste
Analysts and retail investors alike largely greeted this CEO decision with skepticism. Hargreaves Lansdown called the move a “safe pair of hands” that “lacks excitement.” DA Davidson’s Michael Baker commented that the choice “lacks the pop that a significant external hire would provide.” GlobalData’s Neil Saunders warned that this could maintain Target’s “inward-looking mindset,” which has plagued the company for years.
Instead of trying to stimulate a bold new direction, Target has simply promoted the architect of their stagnation, and the market agrees with the analysts; companies don’t just tank 10% after an earnings beat, it takes a serious lack of faith to make that kind of move happen.
Same Playbook, Same Problems
Fiddelke’s operational purview arguably underpins much of Target’s stagnation. Rather than fresh ideas, Target has elected to reward the creator of the status quo. Given that sluggish sales, merchandising failures, and inventory issues persist, giving the reins to someone deeply embedded in those missteps presents great risks of repeating the same mistakes.
Target needed a catalyst for change, not a continuation of the same playbook, and promoting the author of that playbook does nothing but raise more questions regarding the company’s future.
Investors Wanted Bold, But Got Business-as-Usual
Target’s choice to promote from within definitely offers continuity, but continuity is not what Target needs. If they were to continue at their current pace in the stock market, their market cap would be $0 by the end of 2028.
This move deepens concerns about missed opportunities for real strategic renewal. Investors wanted innovation; instead, they got more of the same. As the stock reaction today paints clearly, this isn’t what Target needed at this moment.
Gus Downing is host of the tastylive Network show Risk and Reward. @GainsByGus
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