New CEOs take reins at Walmart and Target facing much different scenarios
As of Feb. 1, two of the nation’s most prominent retailers are under new leadership.
John Furner, who previously served as president and chief executive of Walmart U.S., is now president and CEO of Walmart Inc. He succeeds Doug McMillon, who led the retail giant since February 2014.
Michael Fiddelke, former chief operating officer of Target, has moved into the top spot at the discounter, succeeding Brian Cornell as CEO. Cornell, who served as CEO since 2014, has transitioned to the role of executive chairman.
Neither of the new leaders are new to their respective companies. Furner, who served as president and CEO of Walmart U.S. since February 2019, started at Walmart as an hourly employee in 1993 and has held leadership roles across merchandising, operations and sourcing. He also worked in multiple countries and served as president and CEO of Sam’s Club U.S.
Fiddelke, during his 20-year career at Target, has held leadership roles across merchandising, finance, operations and human resources, including serving as CFO. He started at the company as an intern.
Walmart
Furner has stepped into the corner office at Walmart as the chain has shown no signs of losing momentum, even amid economic uncertainty and a difficult retail environment. The retailer’s strong sales performance of late has been driven by double-digit e-commerce growth, a wider and, in some instances, more upmarket merchandise assortment, and its success in attracting higher-income customers.
Amid its ongoing deep investments in technology, Walmart is also investing billions to enhance its more than 4,600 stores across the U.S. In November, the company raised its full-year forecast for the second quarter in a row.
Target
Fiddelke takes the reins at Target as the company faces both internal and external challenges. The company is based in downtown Minneapolis, which has been racked with protests and violence in recent weeks. Many in Minnesota have called for Target, which is one of the state’s biggest employees, to take a stronger stand against the tactics of immigration officials.
Fiddelke signed an open letter from the Minnesota Chamber of Commerce last week calling for “an immediate de-escalation of tension” following the fatal shooting of a man in Minneapolis by a federal agent.
In recent years, Target has also found itself the subject consumer boycotts over a number of issues, including gay rights, from both conservatives and progressives. Last year, the retailer joined a host of other American companies in scaling back key corporate diversity, equity and inclusion initiatives. Former CEO Cornell said in May that fallout from the roll back had affected sales.
But perhaps Target’s biggest challenge is an ongoing sales slump. The retailer has been called out for messy stores, persistent out-of-stocks and a loss of the the stylish “Tarzhay” image that once set it apart from competitors. In November, amid a 1.5% third-quarter sales drop, Target announced it would invest an additional $1 billion in its business in 2026. Approximately $5 billion in planned capital expenditures will support new stores and remodels and enhancements to the store experience.
Fiddelke laid out his strategy in a letter posted on the company’s website, in which he said that, going forward, Target is focused on four priorities:
•Leading with merchandising authority;
•Elevating the guest experience;
•Accelerating technology to remove friction for teams and customers; and
•Strengthening the company’s team and communities.
To read the full letter, click here.
