MINNEAPOLIS (AP) — Target (TGT) plans to spend billions of dollars this year to end a persistent sales slump and to regain its image as a fun place to shop for stylish clothing, housewares, beauty products and packaged food at affordable prices.
The CEO guiding the turnaround plan is Michael Fiddelke, who stepped into the chief executive role last month but has worked for Target for more than 20 years.
Fiddelke, who previously served as chief operating officer, has his work cut out for him. Some investors wanted an outsider to lead the company when Brian Cornell stepped down as CEO after more than 11 years. On Tuesday, the mass-market retailer turned in another quarter of declining comparable sales. Target also faced pressure to take a public stand against the immigration crackdown in Minneapolis, where the company is based.
During an interview with The Associated Press at the company’s headquarters, Fiddelke talked about how he is trying to refresh stores and Target’s merchandise selection, regain the trust of customers and navigate a political and economic climate that has compounded the company’s troubles. The interview has been edited for clarity and length.
FIDDELKE: Prove is the right word. It’s a ‘Prove it’ story. I have the benefit of a 23-year running start that has taught me so much about how retail works. I’ve gotten to see Target at its very best. I’ve gotten to see us when we are not at our very best, and that leads (to) a real clear view for me of when we’re hitting on all cylinders. It means even being candid on the stuff that I had my fingerprints on. I was COO for two years. I was CFO for some times that were great, and some times that weren’t.
So as long as I’m able to couple — and I believe I can — the benefit of that experience with clear-eyed candor about where we’re at and where we need to drive change, I like that combination.
FIDDELKE: One of the things that’s critical to being design-led is you have to have an environment that fosters creativity in the right way. And I think if you were to pull any buyer into this discussion, they would say that outside stimulus of what’s different, what did I just see, that can often come in travel to other markets. The Alpine Chalet that you saw in our stores just this recent (fourth quarter) — the inspiration for that was from a European Christmas market trip. Where we lost it was during the pandemic. Travel was limited for a couple of years. We’re back to full form now. It probably took us a little longer than it should have, but it’s all about creating the conditions for creativity.
FIDDELKE: I think that history can be instructive on centering who we are in our core. That’s different than nostalgia for nostalgia’s sake. And so there’s an important balance to hold in our heads where spending time in the archives, spending time talking with leaders who have led Target at different chapters. That’s all helpful. And you can’t just fall in love with nostalgia. The playbook from 10 years ago is not going to win in today’s retail.
FIDDELKE: I’ve been at Target 23 years. It has certainly been true in every single one of those 23 years that Target has a deep history of being a productive partner in the communities in which our 2,000 stores operate. And our roots run deep there. Companies of our scale giving 5% of our operating profits back into community. You don’t find a lot of those. And so knowing kind of core truths about who we are, our role in community, matters. Investment in team matters. Target being a place for everyone matters. The teams we build that reflect the communities that we serve, that’s true for the guests in our stores, that’s for the partners that find a place on our shelf.
FIDDELKE: As we went through last year, it was one of the things that impacted our sales. And so we know we’ve got trust to win back with guests, and we’ll be focused on doing it. There’s no easy button to win back trust, but we’ll do the work.
FIDDELKE: When I think about navigating the start of the year here, especially in our hometown in Minneapolis, the thing that we have kept front and center every single day is the safety of our team. And so the safety of the team and the safety of our guests has been our North Star for decision making, and that’s guided every decision that we’ve made.
FIDDELKE: Even over the course of the last year, even at the end of the year, we saw a business that, broadly speaking, was below where we expected. And so, I’m not satisfied with our performance in total. I wouldn’t call out any specific subgroups within that.
FIDDELKE: I think we’re an emotional brand. We’re a brand people love. And the thing I can say is we hold ourselves to a high standard in the product that shows up on our shelves and the experience that we create and the way we show up in the community. So I can’t speak for everyone, but we know where we’re focused.
FIDDELKE: The best thing for us to do is always focus on a clear strategy. Control what we can control. I think over the past several years, there’s been a lot of volatility to manage in the environment. There’s a lot that falls into the we-can’t-control-it bucket, whether it’s the global pandemic or whether it’s changes in policy. And so the right thing for us to do is to be laser-focused on how do we best show up for all those families and guests that depend on us every day.
FIDDELKE: If I had to characterize what I’m hearing from the team, it’s a team that’s hungry to win. There’s so much pride in Target and there’s so much excitement to get this company back to growth. And I think just like I’m not satisfied with our performance the last few years, a team would tell you the same.
