artnership with Ulta Beauty reflect its efforts to navigate this environment. However, its Q2 results, released on Wednesday, indicate there is more work to be done. Net sales dropped 0.9 per cent year-over-year to US$25.2 billion. Additionally, comparable store sales were down 3.2 per cent, while digital sales rose 4.3 per cent.  Target’s operating income fell 19.4 per cent to US$1.3 billion and net earnings fell 21.5 per cent to US$935 million. “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,” Fiddelke acknowledged in a post on LinkedIn.  “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.” Given Target’s recent performance, retail experts say it’s not surprising that Cornell is being replaced. However, some question whether an internal hire is the right choice to return Target to relevance..  What retail experts think about Target’s new CEO “Target has struggled with both stock-outs and excess inventory since Covid. Consumers used to be able to rely on the retailer for a flawlessly resonant assortment and product availability and that just hasn’t been the case for some time now,” Melissa Minkow, CI&T’s global director of retail strategy, told Inside Retail. She observed that Target’s stores have appeared much less organised, and its reputation for having ever-present, helpful sales associates around has dwindled.  “Stores just haven’t been the feel-good experience they once were, and the experiential component was a major competitive differentiator. Lastly, and significantly, changing its tune on DEI was a terrible mistake that didn’t align at all with the core customer,” said Minkow.  In light of all this, SageBerry Consulting’s president and founder Steve Dennis said the replacement of Brian Cornell was “long overdue”.  However, he said, “Target needs more of a leap than the incrementalism that has been characterised over the past few years.”  Minkow stated that she had been hoping for an external hire to shake up the business in a positive direction, the way Cornell once did.  “Target needs a new energy that will restore the DEI values the brand was known for, prioritise overhauling inventory management with the correct supportive technology and get back to collaborations that actually excite shoppers,” said Minkow.  Global Data’s managing director Neil Saunders agreed that Target needs some “fresh thinking and a break with the past. There is too much entrenched groupthink and an inward-looking mindset.” Fiddelke’s appointment to the role of CEO is “yet another weird step in the strange waltz Target seems to be dancing,” he commented. Can an internal hire truly help Target move forward? Not everyone sees Target’s internal appointment as a red flag.  Scott Benedict, the founder and CEO of omnichannel retail consulting firm Benedict Enterprises, provided a more positive perspective on Fiddelke’s leadership capabilities.  “Today’s announcement that longtime executive Michael Fiddelke will succeed Brian Cornell as CEO next February is a pivotal development in my view,” said Benedict. “Fiddelke’s deep operational background and recent work on the company’s efficiency initiatives suggest that Target’s board is signaling a ‘back-to-basics’ and execution-focused approach.”  He noted that Target must take more timely steps towards optimising store staffing, in-stock levels and unique brand partnerships that will help it differentiate itself from Walmart. Not to mention, Target needs to recommit to grocery and fashion to recapture momentum. “To be certain, Target is at an inflection point in its history,” remarked Benedict. “The leadership transition provides an opportunity to reset its strategy and re-establish the brand as a market leader. However, it has to deliver results on the top line and recapture its position as a market leader in value, quality, and shopping experience. “The market would benefit from a strong Target going against a stronger Walmart and Amazon.  Hopefully, this leadership change will provide a needed transition into a strong recovery for the brand,” he concluded.  Similarly, Retail Strategy Group’s Liza Amlani, stated, “Wall Street may be skeptical of Target’s insider CEO pick, but Michael Fiddelke knows the business inside out. His focus on fundamentals and the guest experience is exactly what Target needs to win back shoppers. Sometimes the boldest move is getting back to basics. It’s time for Target to find its magic again.”