Target's stock plunges 7% as new CEO pick disappoints Wall Street: ‘There won't be change when change is needed'

Core Viewpoint - Target's stock dropped 7% after the announcement of Michael Fiddelke, a longtime insider, as the new CEO, disappointing investors who expected an external retail expert to lead the struggling company [1][5][6] Company Leadership Transition - Michael Fiddelke, the 49-year-old chief operating officer, will take over as CEO on February 1, replacing Brian Cornell, who has led the company for a decade and will transition to the role of executive chairman [1][2] - Cornell expressed confidence in Fiddelke's ability to lead Target forward [2] Investor Sentiment - Investors were hoping for an external candidate to revitalize the company, which has faced declining sales and lost market share to competitors like Walmart [4][6] - The stock price reflects concerns that necessary changes will not occur under Fiddelke's leadership [6][7] Sales Performance - Target has reported a persistent slump in sales, with same-store sales declining by 1.9% compared to the previous year [13] - Customer transactions fell by 1.3%, and the average spending per transaction decreased by 0.6% [14] - Despite these challenges, Target's second-quarter earnings exceeded Wall Street estimates, although sales and traffic continued to decline [13][16] Strategic Priorities - Fiddelke outlined three main priorities: enhancing stylish product offerings, improving customer experience consistency, and leveraging technology for efficiency [10] - The company aims to recover its position in the home goods category, which has suffered due to a focus on core items at the expense of fashion and design leadership [18][19]