Current Business Challenges at Target

When a retailer loses its narrative, it risks losing its customers. And Target is learning that the hard way. This week, it reported a 3.8% drop in same-store sales—more than double what Wall Street expected. But the real story? It’s not just inflation or tariffs. It's the cost of misreading culture, consumer trust, and leadership clarity. As someone who partners with executive teams across global consumer brands, I’m watching this moment closely—not just for what it says about Target, but what it signals for the future of leadership in FMCG and retail. Here’s what stands out: → The DEI backlash is real After rolling back diversity and inclusion commitments earlier this year, Target saw visible consumer blowback. Their once-loyal base didn’t stay quiet. And while many companies quietly stepped back from DEI language, the retail giant’s past boldness made their silence even louder. → Competitors are thriving While Target's sales dipped, Walmart grew U.S. sales by 4.5%. TJX saw a 3% increase. These aren’t niche players—they’re direct competitors proving that affordability and agility can still win. → Leadership turbulence is costly Two senior execs exited after just a year. When strategy shifts collide with inconsistent leadership, the talent pipeline fractures. And that inconsistency reverberates across teams, morale, and customer confidence. → Tariffs, costs, and uncertainty add pressure With 30% of Target’s in-house brands relying on China, geopolitical tension is more than a boardroom concern—it’s a shelf-space problem. Yet as Cornell said, raising prices is the last resort. How long can that hold? So what does this mean for executive hiring? - Leaders must be culturally fluent, not just cost-conscious. - They need to navigate both backlash and loyalty with empathy and clarity. - DEI can’t be a checkbox—it’s now a reputational asset or liability. And above all, companies need alignment between values, leadership, and customer expectations. This moment at Target is a case study in what happens when leadership, communication, and cultural intelligence aren’t in sync. For many retail and FMCG brands, it’s a timely reminder: - Your employer brand is your consumer brand. - Your DEI stance is your leadership signal. - And your ability to hold trust—not just prices—might define your next quarter. #RetailLeadership #FMCG #ExecutiveSearch #Target #ConsumerTrends #DEI #LeadershipHiring #CXStrategy #CulturalFluency

A new CEO. Weakening sales. Target doesn’t have an earnings problem. It has an identity problem. This morning, Target announced its first CEO transition in more than a decade. Brian Cornell — the outsider who reshaped the company after the Canada collapse and data breach — will step aside in February 2026. His successor? Michael Fiddelke, a 20-year Target veteran and ultimate insider. At the same time, Target reported: • Comps down 1.9% year over year • Traffic down 1.3%, with smaller basket sizes • And confirmation that the Ulta Beauty partnership will unwind by 2026 That’s not just a numbers story. That’s an identity story. And the consumer can feel it when they walk the aisles, as Neil Saunders has so well articulated and captured. Walmart owns price and grocery. Amazon owns convenience. Specialty retailers own focus and distinction. Target’s historic lane was “cheap chic” — design, style, and discovery at scale. But in recent years, that edge has dulled. The Ulta breakup underscores it. So do falling comps. Fiddelke says his priorities are unique assortments, consistent experiences, and operational efficiency. The real challenge is whether that’s enough to rebuild what made Target so powerful: a cultural lane customers couldn’t resist. Because in retail, once you lose the why, the numbers eventually follow. And this isn’t just about Target. It’s part of the Great Retail Reset we’ve tracked for years: in today’s market, the middle is the deadliest place to be. If you’re not true experiential on one end, or extreme value on the other, you’re walking the hardest road in retail. So the question is: can Target rediscover its lane—or is it already stuck in the middle? #RetailReset #Retail #CRE #Leadership #Target #RetailTrends #ConsumerBehavior

In February, Michael Fiddelke will succeed Brian Cornell as CEO of Target. Cornell, the company’s first outsider chief executive, steered the brand through crises and expansion, leaving it larger and stronger than when he arrived. But retail doesn’t reward nostalgia—it rewards relevance. Michael Fiddelke inherits a Target that has now posted 11 straight quarters of flat or declining sales. Shoppers complain that prices feel too high, stores too messy, and merchandise too bland. In short: the bullseye has lost its shine. His plan is to aim back at what once made Target special—style, design, and the thrill of discovery. But the turnaround won’t be as simple as “Tar-zhay chic.” Walmart dominates on price. Amazon wins on convenience. Target’s advantage has always been a curated sense of design, wrapped in affordability. That edge dulled during the pandemic surge and its messy aftermath. The question is whether a lifelong insider, who started as a summer intern, can rediscover the magic and modernize the experience—cleaning up the stores, investing in technology, and giving customers reasons to choose Target again. Two broader takeaways for the industry: Identity beats imitation. When brands chase category “basics” to stabilize volume, they often sacrifice the very differentiation that built consumer loyalty. #Style without #value is fragile, but value without style is forgettable. Operational complexity kills experience. #Stores that double as #ecommerce hubs may look efficient on a spreadsheet, but they risk eroding the in-store magic if execution falters. #Technology can help, but strategy must dictate operations—not the other way around. In #retail, growth isn’t optional. It’s survival. For Target, the next shot must be a bullseye. #leadership #brands #businessmodel

𝗧𝗮𝗿𝗴𝗲𝘁’𝘀 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀 𝘁𝗵𝗲 𝗥𝗲𝗮𝗹 𝗪𝗼𝗿𝗸 𝗔𝗵𝗲𝗮𝗱 𝗜𝗻𝘀𝗶𝗱𝗲 𝗜𝘁𝘀 𝗦𝘁𝗼𝗿𝗲𝘀 The announcement of Michael Fiddelke as Target’s next CEO came alongside Q2 2025 results. Sales declined 0.9% compared to the same period last year, and shares dropped more than 10% in premarket trading, underscoring investor concern about the path forward. Fiddelke outlined three priorities for accelerating change: 1. 𝗥𝗲-𝗲𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵 𝗺𝗲𝗿𝗰𝗵𝗮𝗻𝗱𝗶𝘀𝗶𝗻𝗴 𝗮𝘂𝘁𝗵𝗼𝗿𝗶𝘁𝘆 through consistent assortments, value, and style that go beyond collaborations. 2. 𝗘𝗹𝗲𝘃𝗮𝘁𝗲 𝘁𝗵𝗲 𝗴𝘂𝗲𝘀𝘁 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲 with friendlier service, well-stocked shelves, and consistent standards across the chain. Guests need to experience joy more often. 3. 𝗕𝗲𝘁𝘁𝗲𝗿 𝘂𝘁𝗶𝗹𝗶𝘇𝗲 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 to improve speed, inventory flow, and decision-making. Make data more readily available to decision makers. From being in Target stores daily, it is clear these priorities are right, but in-store execution remains a challenge. • 𝗘𝗺𝗽𝘁𝘆 𝘀𝗵𝗲𝗹𝘃𝗲𝘀 𝗮𝗻𝗱 𝗲𝗻𝗱𝗰𝗮𝗽𝘀 are far too common across categories, even at the start of brand launches. Inventory feels light from day one and even on key items. • 𝗖𝗵𝗲𝗰𝗸𝗼𝘂𝘁 𝗶𝘀 𝘀𝘁𝗿𝗮𝗶𝗻𝗲𝗱. I have personally been in lines of 20 or more guests with only a fraction of registers open and little urgency to add coverage. • 𝗧𝗵𝗲 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲 𝗶𝘀 𝗶𝗻𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝘁. Guests should feel welcomed at the entrance, but clutter, under-zoned sales floors, and excessive restocking during open hours detract from shopability. • 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱𝘀 𝘀𝗹𝗶𝗽 𝗼𝘃𝗲𝗿𝗻𝗶𝗴𝗵𝘁. Stores often do not appear zoned even at opening, leaving critical real estate underutilized. The photos here are just a snapshot of what guests encounter. The numbers show investor doubt, but the larger issue is whether store execution can be improved quickly enough to restore confidence. 👉 My view is simple: get the basics right (in-stocks, standards, and service) and Target will be in a stronger position to build momentum. Do you see these priorities translating into real change in stores?   Target