(NEW YORK) — Target CEO Brian Cornell will step down early next year after more than a decade at the helm of the $107 billion retail giant, the company said on Wednesday.
In recent years, Target has suffered sluggish sales as the company weathered consumer boycotts over its Pride collection and a rollback of its diversity, equity and inclusion policies.
Michael Fiddelke, who currently serves as chief operating officer, will assume the role of CEO on Feb. 1. Cornell will become executive chair of the company’s board of directors.
“With the board’s unanimous decision to appoint Michael Fiddelke as Target’s next CEO, I want to express my full confidence in his leadership and focus on driving improved results and sustainable growth,” Cornell said in a statement on Wednesday.
“Michael brings a deep understanding of our business and a genuine commitment to accelerating our progress,” Cornell added.
The announcement came as the company reported slow sales over a three-month period ending in August. Sales dropped slightly compared to the same period a year earlier, though revenue picked up from the previous quarter. Net income, meanwhile, plunged 21%, the company said.
In a statement, Cornell acknowledged a “challenging retail environment,” but he touted “encouraging signs of recovery, including improved traffic and sales trends.”
“As we enter the critical back-to-school and holiday seasons, our team remains focused on consistent execution and building momentum as we look ahead to the new year,” Cornell said.
Shares of Target fell nearly 8% in early trading on Wednesday.
The retail giant, which operates nearly 2,000 stores, has struggled to grow sales and outperform competitors in the aftermath of a pandemic-era shopping boom.
Speaking on an earnings call on Wednesday, Chief Commercial Officer Rick Gomez said the company is negotiating prices with suppliers and other partners in an effort to stave off tariff-related price increases.
“What we’ve said, and continues to be our position, is that we’ll take price as a last resort, but our commitment is to offer everyday good value and to have competitive pricing as we think about going forward,” Gomez said.
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