The U.S. chain targets new bosses as it tries to resume sales

U.S. retail giant Target has appointed new CEO as it strives to reverse sales declines and share price declines.

The change in leadership is due to the uncertainty of rising prices and the door-knock effect on U.S. tariffs have raised concerns about the impact of consumer spending, especially with regard to Target’s discretionary products such as clothing and electronics.

Michael Fiddelke, the company’s chief operating officer, will take over as Brian Cornell in February. Mr. Fiddelke has worked in the company for 20 years.

The target stocks fell nearly 11% after the announcement. Mr. Cornell has been the boss for 10 years and is expected to retire.

The appointment of Mr. Fiddelke marks the tradition of Target, hiring company insiders to lead it. Mr. Cornell is the first outsider ever to become a top boss.

Mr Fiddelke said in a statement that the company had “the work to do” and needed “faster, faster” action.

He promises to improve the quality of the products he provides and embed more technology into the business.

Target is known for its affordable clothing as well as a variety of cheap groceries, household goods, electronics and toys.

However, sales have been poor over the past year due to competition from Amazon and Walmart.

Its stock price fell sharply at the beginning of the year and has been stagnant since then.

Hargreaves Lansdown said appointing Fiddelke could overwhelm investors, said Susannah Streeter, head of currency and markets.

“There may be hopeful that successors from market competitors may bring additional knowledge, insight and energy, valuable assets in a time of intense competition,” she said.

Michael Baker, an analyst with Da Davidson, added: “The announcement lacks the pop music provided by a large number of external hires.”

In May, Target cuts expectations for the year After a sharp drop in sales, it blames the introduction of trade tariffs for a “extremely challenging environment”.

Its sales fell 5.7% in the three months to May after the company’s previous decision to end its diversity, equity and inclusion (DEI) target.