Target's New CEO Admits Loss of Trust with Shoppers and Staff

• Fiddelke admitted Target 'wasn't clear enough about who we are as a company,' which hurt standing especially with Black shoppers and staff
• The company cut approximately 1,800 corporate positions in October, marking its first major layoff in roughly a decade
• Target faces multiple pressures including a pullback from diversity initiatives, related boycotts and lawsuits, and reliance on sourcing from countries affected by Trump-era tariffs

Target CEO Acknowledges Loss of Trust, Vows Turnaround

Key Developments:

Target Corporation's new CEO Michael Fiddelke has publicly acknowledged the retailer has lost trust with both customers and employees, according to Bloomberg News reporting on his first town hall meeting in February.

Leadership Changes:

Fiddelke, a Target insider, assumed the CEO role this month, replacing Brian Cornell who retired. In October, Fiddelke previously announced approximately 1,800 corporate layoffs—the company's first major workforce reduction in roughly a decade.

Core Issues Identified:

In remarks to staff, Fiddelke admitted "we weren't clear enough about who we are as a company," stating that confusion resulted and the company failed to adequately address it in real-time. He specifically noted that Target's unclear positioning has particularly damaged relationships with Black shoppers and internal staff members.

Operational Challenges:

The new CEO inherits multiple significant challenges:

• Protracted sales decline
• Controversial pullback from diversity, equity, and inclusion (DEI) initiatives following President Trump's inauguration
• Boycotts and lawsuits related to DEI practices
• Supply chain vulnerabilities due to reliance on sourcing from countries affected by Trump administration tariffs

Forward Strategy:

Fiddelke acknowledged that the previous year was difficult and confirmed work is underway to reconnect with lost customers and rebuild the retailer's market position.

Market Implications:

Target faces reputational and operational headwinds requiring strategic clarity and stakeholder trust restoration. The admission signals potential major strategic shifts ahead as leadership attempts to stabilize the big-box retailer's market standing amid political pressures and competitive challenges in the retail sector.