Here's why new Target CEO Michael Fiddelke must hire Colin Yankee as CSCO and tap Palantir technology

The CEO of Target is stepping down, as the retailer grapples with weak sales and an ongoing customer boycott over its scaling back of diversity, equity and inclusion (DEI) initiatives.

Brian Cornell will be replaced next year by Michael Fiddelke, Chief Operating Officer.

“During my time at Target, I’ve had the chance to learn from incredible leaders, work alongside amazingly talented teams and develop a fierce love for this company and the special role it holds in our guests’ lives. That’s why I am honored and excited to be named the next CEO,” says Fiddelke.

“Getting Target back to growth is my top priority. We’ll need to operate differently, move with urgency and focus, and make bold choices to get there. We have the foundation to build new momentum, and I’m eager to accelerate work already underway and find new ways to deliver the incredible products and experiences our guests expect from us.”

He adds: “Thank you to the many mentors, peers, friends, and family - and especially Brian Cornell, for his steady leadership, support, and laying the groundwork for our future success. I’m excited for what’s ahead and proud to be taking this step forward with the best team in retail.”

In a LinkedIn post, Brittain Ladd, a supply chain consultant and former Amazon executive, said: “Mike has worked hard since joining Target in 2003. I have named him as the preferred internal CEO candidate multiple times since 2023. However, all is not well in Targetland.”

“The majority of retail analysts and consultants believe that Target should have hired a CEO from outside the company. I've stated in multiple posts that Richard Dickson, Hal Lawton, Chris Nicholas, or Greg Hicks, should be considered for the role.”

“Retail executives at Target and competitors speak highly of Mike. But a senior executive stated, he is a dairy farmer. He'll make sure the cows are milked twice a day. Target needs someone to reinvent dairy farming. That isn't Mike."

He added: “The consensus appears to be that he lacks the ability to think big, he isn't innovative, and that Target chose him to be CEO because they know he will continue following Brian Cornell's strategy. The status quo is safe. Mike won't make any major changes. He can silence the naysayers by embracing the following: Leadership is about courage. As CEO, Mike has to make Target a better company. Period.”

Ladd believes that Fiddelke must do the following:

• Hire six new senior executives. Replace the executives who joined Target in the 1990s and early 2000s. Eliminate the Chief Guest Experience Officer position, and move the responsibilities under Sarah Travis (Chief Digital & Revenue Officer). “This will significantly make Target a better company. Everything from merchandising to store operations will improve.”

• Hire Colin Yankee, Chief Supply Chain Officer, at Tractor Supply Company, and name him CSCO.

• Fix or divest the grocery business. Partner with Publix Super Markets or Lidl US to open stores inside Target's stores, or divest the business to Whole Foods Market.

• Contact Alex Karp, CEO at Palantir Technologies, and ask to meet with him. “Target is in the Stone Age when compared to Palantir's AI and software capabilities. This is a must have,” Ladd argues.

• Assess implementing aspects of what is arguably the most innovative department store in North America from Canadian Tire Corporation. “The future of Target is up to you, Mike. Are you going to milk cows or invent a new dairy farm? I sincerely wish you the best,” Ladd concluded.