The new target director Michael Fiddelke faces faces challenges

When the new General Manager Michael Fiddelke was targeted Steps in the role At the beginning of February, he will inherit a company that faces sales for the decline, weakening of customer loyalty and skeptical investors.

It’s Fiscal results of the second quarter Published on Wednesday Illustrated key challenges with large boxes. Sales dropped again from before it was the period before it was time. The customer’s traffic has dropped. And the swimmers were spent on average during their travels to the website and shops compared to a year ago.

FIDTE, announced on Wednesday As a target director of Grian Cornel, he will soon lead a little store effort and will have to show that he can revive the company in which he spent about two decades. At the earnings of the call on Wednesday, he admitted that the goal was collapsed, but he ran his long term with retailer as “funds” and said that he knows what the goal is at best.

“I know we don’t understand our full potential at the moment, so I’m in a role in a role with a clear and urgent commitment to build a new momentum in business and I’ll be back to profitable growth,” he said.

Although Fiddelke is still not in the role, he said the target was not waiting for his beginning in February to make changes.

It was recorded to move with an emergency to return the company to sales growth. And he presented his three three priorities, saying that he would focus on winning the reputation of the return meters as a strong dealer, improving customers’ experience in stores and using technology to improve their business.

On Wednesday, the goal said that he had fresh evidence that his turning efforts already bear the fruit. The sale of the company improved from the first quarter to the second quarter, the Fiddelke said, although they were negative years during the year. Sales trends in all six metal categories of meters available are improved in the previous quarter, he said. And retail became better in the fight against external actions, with the best available objects on the shelves she had in years, he said.

It appears that more changes will be needed in support of Wall Street. The results of the second quarter extend the rocket several years to the goal, which tested the faith of many investors. The market value of the goal fell from a high $ 129 billion in 2021. At about 45 billion dollars on Wednesday.

49-year-old Fiddelke increased through the target purposes after it began as an intern. He held attitudes in trade, finance, operations and human resources, including a recent reputation as the main financial officer and his current role of the main operational officer. He also eavesdropped to lead the office to accelerate the company, a new effort that the goal was announced in May to start his turnaround.

However, the decision is targeted to hire the insider Fiddelke, instead of the external candidate, he received cold reception. Investors responded to a choice with stock on Wednesday.

The actions fell by more than 6% on Wednesday, so far by bringing their losses of this calendar year at about 27%. What routes are you looking for behind more than 8% of winnings S & P 500 in the same period.

Wall Street has favored the business outsider, according to June 51 investors Mizuho securities, firm research companies. About 96% of surveyed investors favored external narration for the next goal director, it found.

Manny Chirico, former CEO CEO Calvin Klein and Tommy Hilfiger Parent PVH, said investors were hungry for greater changes.

“I think the market exam is if the internal candidate, with Brian (Cornell) remained as an executive chair, is it a brave move forward enough?” He said in an interview on Wednesday on CNBC’s “Squavk Hi”.

Customers and former employees told CNBC, the seller lost some of his most famous traits, including his pure and good supplies, friendly staff and attention for attention. Some customers also decided to buy somewhere else in response as they protested Its gathering pridehis later move to withdraw some items from that line and his decision Restore key diversity, capital and efforts in turning

The goal has become known as “Tarzhai”, a french nickname, due to power in offering trends and often exclusive clothing, decor for domestic and more at lower prices. It turned your stores into experience in the shopping center by adding Starbucks and a small store from Ulte Beauti.

The company’s ability to push customers to stretch the jokes and memes for meme and social media on the ears in a store for a single item, but still going out with dozen.

“There was a time when the target was on top of the world,” David Bellinger said, a retail analyst Mizuho Securies, on Wednesday.

The sale of goals increased by more than $ 15 billion in a fiscal year after the beginning of the pandemic, encouraged incentive dollars. His actions rose at all times of closing of $ 266.39 in 2021. Years. On Wednesday afternoon, his inventory traded more than 60% below that level, closing the day to $ 98.69.

The annual sales of the goal was a coarse apartment in the last four years. The goal said that it expects total sales to drop a low-one-digit percentage of this fiscal year.

Other factors injure the target after the pandemic. Customers shelled on the dining room, concerts and rest and faced decades – high inflation. And the chain was faced with new tests, lately in the form of delivering President Donald Trump.

The goal also lost land with competitors. The main commercial officer Rick Gomez said that at Card’s Calls called the merchant was retained or gained market share in 15 of her 35 her brands in the first quarter. Put the other way, lost the country in most categories that are sold.

While the goal is confronted with problems in its power, many of its questions They were self-harm, Stacei Vidlitz, President of St. Retail Svj, said Skuavk Hi “Skuavk Hi”.

“It used to be a clean and exciting and fresh brands,” she said. “It just changed it in the past two years and we heard them talk about how it would fix it and haven’t seen it.”

Bellinger said he saw changes on travels to his nearby target shop. The freight of the curb is fast and suitable. But inside the store, he said that many goods were locked to prevent theft, customers are waiting in long lines to check and the cashier space is short-lived.

“It’s just not easy buying experience,” he said.

In one of the new challenges, Fiddelke will have to face, aim and ult next August will end up their partnershipwho helped driving the sales of beauty for aim.

Described Gomez its new line of active clothing and the sports goods of the champions, which was debuted this month, as “really epitoman Tarzhai”.

Working to concluding goods will more attract, Fiddelke said on Wednesday. For example, he said that it was repaired by the category of Hardline, which includes items such as TVs, transmission computers, toys and shopping cards.

The goal also wants to turn weaker sales in the category of domestic goods. His new bed linen and disney decor and marvels in the house, pillow and new colors, patterns and fabrics in Casaluni, its premium linen line, was popular, Fiddelke said.

“Now, what the team has to do is say” OK, we must more than that, more constant, more often, throughout the larger parts of business, “he said.

Plans to change next year In order to be a threshold, his greatest brand of domestic goods, he said.

Beyond fixing your brands and starting new goods, Fiddelke’s ability to turn the company can peek from one critical task: identity recovery The seller who were loyal to buyers knew and loved.

“If the target went tomorrow, you would have a lot of disappointed consumers, millions of consumers,” Bellinger said. “There’s a true core customer who loves target, and here it is a ton, if I can understand.”