Investor Confidence Wavers After Target CEO Appointment
Investors wanted a bold outsider, but Target’s board chose continuity with Michael Fiddelke—now the veteran insider must prove he can deliver change from within.

Target’s choice of Michael Fiddelke as its next chief executive was supposed to reassure markets. Instead, it sparked a selloff. Shares plunged nearly 11 percent on the day of the announcement, highlighting Wall Street’s doubts that an insider can deliver the kind of reinvention the retailer urgently needs.
Fiddelke, a 20-year veteran of the company, will succeed Brian Cornell when he steps down early next year. He has held senior roles as CFO, COO, and most recently head of the Enterprise Acceleration Office, an initiative designed to simplify operations and drive long-term growth. While his résumé is steeped in Target’s culture, investors worry that continuity won’t be enough to revive a brand that has lost its competitive edge.
Market Reaction and Analyst Doubts
The market’s verdict was swift. Analysts, many of whom had anticipated an external hire, argued that Target missed a chance to inject new energy. “Although Michael Fiddelke is likely to be seen as a safe pair of hands, having already overseen a big efficiency drive, the appointment appears to have seriously underwhelmed investors,” said Susannah Streeter of Hargreaves Lansdown. “There may have been hopes that a successor from a rival could have brought extra knowledge, insight and energy, valuable assets at a time of intense competition.”
Michael Baker of DA Davidson described the drop in shares as partly linked to expectations. “Target went with an internal promotion as Brian Cornell officially announced long-expected retirement,” Baker noted. “That is not a knock on new CEO Michael Fiddelke, who deserves a chance to prove himself. But, that announcement lacks the pop that a significant external hire would provide.”
Neil Saunders of GlobalData was blunt about the risk of insularity. “While we think Fiddelke is talented and has a somewhat different take on things compared to current CEO Brian Cornell, this is an internal appointment that does not necessarily remedy the problems of entrenched group think and the inward-looking mindset that have plagued Target for years.”
UBS analyst Michael Lasser added that Wall Street may now question whether the company can meaningfully shift direction. “Many in the market favored an external hire, arguing that would be the only way to re-energize this retailer and jump-start its strategic reinvention.”
