New Blood at the Helm: Target's Promotion of Michael Fiddelke to COO
Michael Fiddelke, the top-tier operations administrator, is the focus of the piece.
Listen up, folks! Target's got some big changes brewing! On a foggy January day, they dropped a bombshell announcement - Michael Fiddelke is slated to become the retail giant's new Chief Operating Officer (COO). He'll be diving into the deep end on February 4th. Target's also shaking up its merchandising team leadership, acknowledging the magnitude, complexity, and sheer size of their operations, as stated in an official press release.
Michael Fiddelke isn't exactly a newcomer to the Target scene. He first entered their world as an intern way back in 2003. Throughout his long tenure, Fiddelke has gracefully danced his way through various leadership roles in merchandising, operations, and human resources. Since late 2019, he's been serving as the company's chief financial officer (CFO), and he'll be juggling both roles until they get a new CFO on board.
On the merchandising front, Rick Gomez - who's been Target's big cheese in food and beverage - is about to grow himself a little hungrier. His expanded portfolio now includes Target's frequency categories, making him the new Chief Food, Essentials, and Beauty Officer. Jill Sando, the current Chief Merchandising Officer, will be focusing her powers on discretionary categories, overseeing apparel, accessories, home, and hardlines.
Fiddelke is taking over from the outgoing COO, John Mulligan, who announced his departure last fall. Seizing the opportunity, Fiddelke shared his excitement about spending more time on the field, working with team members, and building towards an even brighter future for Target. "Operations are what keep our guests happy, and I can't wait to take a front-row seat," he said.
As COO, Fiddelke will have his hands full managing nearly 2,000 stores, Target's global supply chain network, and fulfillment services, including same-day delivery. He'll also direct the teams responsible for opening and remodeling Target's stores and other facilities.
Brian Cornell, CEO of Target, praised Fiddelke, saying, "With 20 years under his belt at Target, spanning across various departments, Michael has a unique understanding of everything we do. He'll prove invaluable in our continued growth."
During the latest earnings call, Cornell shared that Target's drive-up service rakes in over $7 billion in annual sales. Same-day services saw a growth of more than 8% in the quarter, with drive-up experiencing a 12% increase. Target's Q3 revenue for 2023 was $25.4 billion - a 4.2% dip compared to the previous year. Fiddelke, in his role as CFO, reported that operations generated over $5.3 billion in cash through the first three quarters of 2023 - a substantial increase from around $550 million for the same period in 2022.
On a separate note, Fiddelke took to a blog post to underline the importance of operations teams in ensuring the best guest experience. "We can dream up all sorts of fantastic ideas, but it's the operations team that brings them to life," he said.
Rick Gomez and Jill Sando, who'll now be leading the merchandising team, have a wealth of experience under their belts. Gomez joined Target in 2013 and was promoted to the leadership team in 2017. Sando started working with the company in 1997 and was promoted to the leadership team in 2020. Both will continue reporting to Christina Hennington, the Chief Growth Officer.
This week, Target also bid farewell to Don Liu, their Chief Legal and Compliance Officer. Liu has been with the company since 2016 and served as corporate secretary. Once a successor is found, Liu will continue working with the company in an advisory role until next year. "Don has been a pillar of our leadership team and a trusted advisor to many across the organization," said Cornell. "We're grateful for his support as we find his successor and look forward to celebrating him as he approaches retirement."
- As Target's new Chief Operating Officer (COO), Michael Fiddelke will oversee the retail industry's vast operations, including the management of nearly 2,000 stores and the global supply chain network.
- In a bold move, Target has assigned Rick Gomez, formerly the head of food and beverage, as the new Chief Food, Essentials, and Beauty Officer, broadening his responsibility in the merchandising department.
- Simultaneously, Jill Sando, the current Chief Merchandising Officer, will now be focused on apparel, accessories, home, and hardlines, moving away from the frequency categories previously under her jurisdiction.
- Fiddelke's AI-powered financial strategies have proven effective, as evidenced by Target's Q3 revenue of $25.4 billion, redeeming a 4.2% dip from the previous year, and the substantial increase in cash generated by operations to over $5.3 billion during the first three quarters of 2023.
- The shake-up in Target's finance and merchandising departments comes after the promotion of Fiddelke from the position of Chief Financial Officer (CFO) to COO, aiming to further strengthen the retail giant's position in the ever-competitive retail industry.
- Brian Cornell, CEO of Target, anticipates the strategic contributions of the new leadership, including Fiddelke's in-depth understanding of the business, and welcomes the continuation of the experience-rich team of Gomez and Sando under the guidance of Christina Hennington, the Chief Growth Officer.
