Target CEO Fiddelke Pledges to Rebuild Customer Trust, Plans New Store Openings

Michael Fiddelke stepped into the CEO role at Target on February 1 carrying 23 years of institutional knowledge and a company in need of a turnaround. A month later, he outlined an aggressive plan to win back shoppers: $3 billion in new investment, 30 new store openings, and a sweeping redesign of how Target looks, feels, and buys its merchandise.

Fiddelke, who previously served as Target's chief financial officer and chief operating officer, takes over from Brian Cornell, who led the company for 11 years before stepping down. The transition comes as Target has spent several consecutive quarters reporting sliding sales, and the most recent holiday season saw the company cut jobs and slash product prices in an effort to recover revenue. No specific figures on the job cuts or price reductions were disclosed.

The centerpiece of Fiddelke's strategy is a $2 billion investment aimed at remodeling 130 existing stores, many of which "haven't been spruced up in a decade," and at what the company describes as reclaiming "its authority on style." An additional $1 billion is earmarked for operational expenses, labor training, and artificial intelligence. Together, the investments signal that Fiddelke intends to compete on both the physical store experience and backend efficiency.

The expansion plan pairs the remodels with 30 new store openings. On the merchandising side, Fiddelke said he is pushing buyers to travel to outside markets for inspiration, describing his approach as "fostering the conditions for a creative retail resurgence."

Beauty is getting particular attention. Target Beauty Studio is set to launch in 600 stores this fall, partly filling space left by the ending of Target's partnership with Ulta Beauty. Both companies announced in summer 2025 that the Ulta arrangement would conclude in August. Target has not yet specified which year's fall the 600-store Beauty Studio rollout corresponds to, nor confirmed the precise August year for the Ulta wind-down.

Despite the recent struggles, Target reported a solid annual profit outlook and said it believes net sales will grow every quarter this year. Comparable store sales also rose at the start of the current quarter, offering an early sign that the corrective measures taken during the holiday season may be beginning to take hold. Whether the broader $3 billion bet accelerates that momentum will become clearer as remodeled stores open and the new beauty concept reaches shoppers.