Target CEO hopes to earn back customer trust, plans to open new stores

Target workers await layoff news

Target announced on Oct. 23 that it will eliminate 1,800 corporate positions. This includes 1,000 employee layoffs and the closure of 800 unfilled jobs. Employees are scheduled to be notified of the layoffs on Tuesday. FOX 9’s Se Kwon has more on the story.

MINNEAPOLIS (FOX 9) - Target's new CEO says the company will prove it can regain the public's trust after slumping sales and political backlash.

Michael Fiddelke, who took on the CEO role on Feb. 1 after 23 years with Target as CFO and COO, said he is fostering the conditions for a creative retail resurgence.

READ MORE: Target requires workers to smile at customers in hopes of boosting sales: Report

Former CEO Brian Cornell stepped down from the role after 11 years. 

Target sales slump

Target names new CEO, stock drops with sales

Target has named its new CEO, which was met by a drop in its stock price on Wednesday. Meanwhile, sales have fallen for another quarter. FOX 9?s Mike Manzoni has the latest on the retailer whose headquarters is based in Minnesota.

Big picture view:

Target has consistently reported sliding sales in its quarterly reports, and has acknowledged there is "work to do" in order to bounce back. 

During the most recent holiday season, jobs were cut and product prices were slashed in an effort to claw back much-needed revenue. 

Despite this, Target showed a "solid annual profit outlook" this week and, according to the Associated Press, "believes net sales will grow every quarter this year," adding that "comparable store sales rose to start the current quarter." 

READ MORE: Target slashes prices on thousands of items in bid to revive slipping sales

The Associated Press reports the company is addressing this with a $2 billion investment that aims to elevate the customer experience by remodeling stores and reclaiming "its authority on style." 

Retail rebirth

What's next:

Target now plans to open 30 new stores and remodel 130 existing stores, many of which "haven't been spruced up in a decade," company executives told the Associated Press.

The company is also making investments in its workforce, with another billion dollars set to go toward operational expenses as well as labor training and artificial intelligence.  

Fashion and beauty products are also in focus, with Target Beauty Studio set to launch in 600 stores this fall. Company leaders say these will partly replace its Ulta Beauty shops, which is set to end its partnership with Target in August, both companies announced in summer 2025. 

On the fashion front, Fiddelke is fostering environments that inspire creativity, with merchandise buyers being pushed to travel to outside markets for inspiration. 

"There’s so much pride in Target and there’s so much excitement to get this company back to growth," Fiddelke told the AP. "And I think just like I’m not satisfied with our performance the last few years, a team would tell you the same."

Targeting politics: ICE, DEI and tariffs

What they're saying:

After rolling back DEI programs, facing calls from protesters to take a stand on ICE operations in the state, and enduring market uncertainty following imposed tariffs, Fiddelke says Target's strategy is to "Control what we can control."

When asked by the Associated Press about the backlash the company faced for rescinding DEI programs and not pubically standing against ICE, Fiddelke emphasized Target's "deep history of being a productive partner in the communities in which our 2,000 stores operate."

Fiddelke acknowledged that boycotts were one of the factors that contributed to slumping sales, and that the company will "do the work" needed to win back customer trust.