Dive Brief:
- After more than a decade, Target CEO Brian Cornell will exit the position effective Feb. 1, per a press release Wednesday.
- Chief Operating Officer Michael Fiddelke has been tapped to take over the chief executive role. A COO replacement will be announced at a later date.
- After stepping down, Cornell will serve as executive chair of Target's board of directors.
Dive Insight:
With his departure, Cornell leaves behind an impactful legacy that shaped the Target shoppers now know.
He helped Target become a more than $100 billion company and increased revenue by $34 billion in 11 years, per a statement from Christine Leahy, lead independent director of Target's board of directors.
The executive joined Target in 2014, marking the first time the company hired a CEO externally. Cornell had most recently served as the CEO of PepsiCo Americas Foods division since 2012 and before that was the CEO of Walmart’s Sam’s Club.
As CEO, Cornell helped to improve Target’s reputation and financial performance for several years. Target in 2022 signed the then-63 year old executive on for an additional three years, choosing to forgo its traditional retirement age policy for chief executives at 65.
Going forward the company appears confident in Fiddelke’s capabilities.
"Over the last several years, the Board has been executing a deliberate and thoughtful CEO succession process, including an extensive external search and assessment of many strong candidates," Leahy said in the statement. "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. Michael's tenure gives him unmatched enterprise insight and a base of strong team trust. But what sets him apart is how he combines those strengths with a 'fresh eyes' mindset, challenging the status quo to evolve how the business operates, differentiates and delivers long-term value."
Interest in announcing a successor had become a hot topic for the industry lately as the mass retailer faced major headwinds, which has led to sales declines.
Cornell’s departure marks a turning point in Target’s effort to return to growth and revive the “Tarzhay” brand.
