MINNEAPOLIS (AP) – Target ( TGT ) plans to spend billions of dollars this year to reverse a continued sales decline and restore its reputation as a fun place to shop for stylish clothing, home goods, beauty products and packaged foods at affordable prices.
The CEO spearheading the turnaround is Michael Fiddelke, who took over the top job last month but has worked for Target for more than 20 years.
Fiddelke, who once worked as an executive officer, finds his job very difficult. 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 declines in comparable sales. Target also faced pressure to take a public stand against immigration abuse in Minneapolis, where the company is based.
In an interview with the Associated Press at the company’s headquarters, Fiddelke talked about how he is trying to revive Target’s stores and merchandise selection, restore customer trust and deal with the political and economic climate that has compounded the company’s problems. The interview is edited for clarity and length.
FIDDELKE: Prove the right word. It’s a ‘Prove It’ story. I’ve had a 23-year career that has taught me a lot about how sales work. I found Target to be much better. I got to see us when we weren’t at our best, and that lead(e) to a clear realization for me that we were hitting on all cylinders. It also means going public about the things I had my fingers on. I was COO for two years. I was the CFO some times were good, and other times were not.
So as long as I can marry – and I believe I can – the benefit of that experience with a clear eye about where we are and where we need to change, I love that combination.
FIDDELKE: One of the most important things in leading a design is that you have to have an environment that encourages creativity in the right way. And I think that if you were to drag any buyer into this conversation, they would say that the external renewal is different, what I just saw, that often comes to other markets. The Alpine Chalet you saw in our stores this latest (fourth quarter) – the inspiration for that came from a European Christmas market trip. Where we lost was during the epidemic. Travel was limited for a few years. We are back to full form now. It probably took us longer than it should have, but it’s about creating creative situations.
FIDDELKE: I think history can teach us to focus on who we are at our core. That’s different than nostalgia for nostalgia’s sake. So there’s an important balance to keep in our heads when we spend time in the archives, spending time talking to leaders who have led Target through various chapters. All of that helps. And you just can’t love nostalgia. A playbook from 10 years ago won’t win in today’s sales.
FIDDELKE: I have been at Target for 23 years. It’s been true throughout those 23 years that Target has a deep history of being a productive partner in the communities where our 2,000 stores operate. And our roots run deep there. Companies of our scale give 5% of our operating profit to the community. You don’t get much of that. So knowing the kind of important truths about who we are, our role in society, is important. Investing in group issues. It is intended to be a place for everyone. The teams we build reflect the communities we serve, that’s true for the visitors in our stores, that’s the partners who find a place on our shelf.
FIDDELKE: Going through last year, it was one of the factors that impacted our sales. And so we know that we have the confidence to win again with the visitors, and we will focus on doing it. There is no easy button to restore trust, but we will do the work.
FIDDELKE: When I think about going through the early part of the year here, especially in our hometown of Minneapolis, the thing that we kept at the forefront every day was the safety of our team. So the safety of the team and the safety of our guests has been our North Star in decision-making, and that guides every decision we’ve made.
FIDDELKE: Even in the middle of last year, even at the end of the year, we saw that the business, to put it mildly, was below our expectations. Therefore, I am not satisfied with our overall performance. I won’t name any specific groups in between.
FIDDELKE: I think we are an emotional brand. We are a brand that people love. And what I can say is that we hold ourselves to the highest standards in the product that appears on our shelves and the experience that we create and how we present ourselves to the public. So I can’t speak for everyone, but we know where our focus is.
FIDDELKE: The best thing to do is to stay focused on a clear strategy. Control what we can control. I think that in the last few years, there has been a lot of change that needs to be managed in the environment. A lot falls into the bucket that we can’t control, whether it’s a global pandemic or changes in policy. And so the right thing to do is to focus on how we can show better to all those families and visitors who rely on us every day.
FIDDELKE: If I had to express what I feel about the team, it is a team that is hungry to win. There is a lot of pride in Target and a lot of enthusiasm to return the company to growth. And I think that just as I am not satisfied with our performance in the last few years, the team can tell you the same.
