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| US chain Target appoints new boss as it seeks to revive sales | US chain Target appoints new boss as it seeks to revive sales |
| (about 3 hours later) | |
| Target sells a wide range of discounted goods, from clothes to electronics | Target sells a wide range of discounted goods, from clothes to electronics |
| US retail giant Target has appointed a new chief executive as it struggles to reverse a decline in sales and its share price. | US retail giant Target has appointed a new chief executive as it struggles to reverse a decline in sales and its share price. |
| The leadership change comes as rising prices and uncertainty over the knock-on effects of US tariffs have raised concerns over the impact on consumer spending, particularly for Target's discretionary products such as apparel and electronics. | The leadership change comes as rising prices and uncertainty over the knock-on effects of US tariffs have raised concerns over the impact on consumer spending, particularly for Target's discretionary products such as apparel and electronics. |
| Michael Fiddelke, the company's chief operating officer, will take over from Brian Cornell in February. Mr Fiddelke has been with the company for 20 years. | Michael Fiddelke, the company's chief operating officer, will take over from Brian Cornell in February. Mr Fiddelke has been with the company for 20 years. |
| Shares in Target more than 6% on Wednesday after the announcement. Mr Cornell, who has been boss for 10 years, had been expected to retire. | |
| The appointment of Mr Fiddelke marks a return to Target's tradition of hiring a company insider to lead it. Mr Cornell was the first-ever outsider to be made the top boss. | The appointment of Mr Fiddelke marks a return to Target's tradition of hiring a company insider to lead it. Mr Cornell was the first-ever outsider to be made the top boss. |
| Mr Fiddelke said in a statement that the company has "work to do", and needs to move "faster, much faster". | Mr Fiddelke said in a statement that the company has "work to do", and needs to move "faster, much faster". |
| He pledged to improve the quality of products on offer and to embed more technology in the business. | He pledged to improve the quality of products on offer and to embed more technology in the business. |
| Target is known for its affordable clothes and wide range of cheap groceries, homeware, electronics and toys. | Target is known for its affordable clothes and wide range of cheap groceries, homeware, electronics and toys. |
| But it has seen poor sales in the past year amid competition from Amazon and Walmart. | But it has seen poor sales in the past year amid competition from Amazon and Walmart. |
| Its share price dropped considerably at the start of the year and has been stagnant since. | Its share price dropped considerably at the start of the year and has been stagnant since. |
| In his first media call as incoming chief executive, Mr Fiddelke said his "number one goal is to get us back to growth". | |
| But Susannah Streeter, head of money and markets, Hargreaves Lansdown, said the appointment of Mr Fiddelke was likely to underwhelm investors. | |
| "There may have been hopes that a successor from a rival in the market could have brought extra knowledge, insight and energy, valuable assets at a time of intense competition," she said. | "There may have been hopes that a successor from a rival in the market could have brought extra knowledge, insight and energy, valuable assets at a time of intense competition," she said. |
| "We have very mixed feelings about this appointment," said Neil Saunders, managing director at GlobalData. | |
| "This is an internal appointment that does not necessarily remedy the problems of entrenched groupthink and the inward-looking mindset that have plagued Target for years." | |
| Michael Baker, an analyst at DA Davidson, added: "That announcement lacks the pop that a significant external hire would provide." | Michael Baker, an analyst at DA Davidson, added: "That announcement lacks the pop that a significant external hire would provide." |
| In May, Target slashed its expectations for the year after a sharp fall in sales which it blamed on a "highly challenging environment" amid the introduction of trade tariffs. | In May, Target slashed its expectations for the year after a sharp fall in sales which it blamed on a "highly challenging environment" amid the introduction of trade tariffs. |
| Its sales slumped by 5.7% in the three months to May, at a time when the company also faced a backlash following a previous decision to end diversity, equity and inclusion (DEI) targets. | Its sales slumped by 5.7% in the three months to May, at a time when the company also faced a backlash following a previous decision to end diversity, equity and inclusion (DEI) targets. |