New Target CEO Moves Quickly to Reshape Leadership as Retailer Seeks Turnaround

BY EMMANUEL OGBONNA

Target’s new chief executive is wasting little time in reshaping the company’s leadership as the retailer works to overcome persistent operational challenges and slowing sales.

Michael Fiddelke, who took over as CEO earlier this month, announced a series of senior management changes Tuesday that will see longtime executives depart, roles redefined and responsibilities consolidated. The moves mark the first major strategic shift under Fiddelke’s leadership and signal an effort to speed up decision-making at a company that has struggled to regain momentum.

Rick Gomez, a 23-year veteran of Target who oversees the retailer’s expansive merchandise inventory, will leave the company. Jill Sando, the chief merchandising officer responsible for several major categories including apparel and home goods, will retire after nearly three decades with the company, having joined Target in 1997.

Under the changes, Lisa Roath, who previously led food, essentials and beauty categories, will step into the role of chief operating officer, a position most recently held by Fiddelke. Cara Sylvester, who had been serving as chief guest experience officer, will assume the role of chief merchandising officer, overseeing the company’s product assortment and merchandising strategy.

Fiddelke said the reorganization is designed to allow Target to move faster and stay focused on priorities tied directly to growth. In a statement, he described the leadership shuffle as the beginning of a new phase for the retailer, emphasizing urgency as the company works to strengthen its business.

“It’s the start of a new chapter for Target, and we’re moving quickly to take action against our priorities that will drive growth within our business,” Fiddelke said.

Gomez and Sando will remain with the company for a brief transition period to ensure continuity, but the leadership changes are set to take effect Sunday.

Alongside the executive reshuffle, Target reiterated its existing profit guidance for the year and outlined additional workforce adjustments. The company plans to increase investment in store staffing, while cutting roughly 500 jobs across its distribution centers and regional offices, according to an internal memo shared with employees. The company said the changes are aimed at better aligning resources with customer-facing operations.

Fiddelke, a 20-year veteran of Target, succeeded Brian Cornell, whose departure surprised some industry observers. Analysts had widely expected the board to look outside the company for fresh leadership as Target attempts to revive sales and sharpen its identity in a highly competitive retail environment.

The retailer has faced mounting challenges as consumers rein in discretionary spending amid economic uncertainty. Shoppers have also voiced frustration with cluttered and understaffed stores, saying the chain has drifted from the affordable, well-curated image that once earned it the nickname “Tarzhay.”

Beyond operational issues, Target has been navigating reputational and political pressures. The company has faced boycotts and criticism following its decision to scale back certain corporate diversity, equity and inclusion initiatives. It has also drawn protests in Minneapolis, its hometown, where critics argue the company has not done enough to respond publicly to aggressive federal immigration enforcement actions.

Tensions escalated last month after two U.S. citizens were fatally shot by federal agents in Minneapolis, an incident that prompted widespread outrage. Target has not issued public comment regarding the detention of two of its employees by federal agents earlier this month, though Fiddelke addressed the situation internally, sending a video message to the company’s roughly 400,000 employees in which he described the recent violence as “incredibly painful.”

In January, Fiddelke was among dozens of chief executives from Minnesota-based companies who signed an open letter urging state, local and federal officials to find solutions in the wake of the fatal shootings.

As Target enters this next phase under new leadership, investors and employees alike are watching closely to see whether the organizational changes will be enough to steady the retailer and restore confidence in one of the nation’s largest big-box chains.