Dive Brief:
- Streamlining some of Target’s C-suite, the retailer is transitioning to a single chief merchandising officer structure, per a Tuesday press release. Target also named CEO Michael Fiddelke’s successor for chief operating officer, effective Sunday.
- Lisa Roath, currently chief merchandising officer of food, essentials and beauty, is taking over as COO. Meanwhile, Chief Guest Experience Officer Cara Sylvester will become chief merchandising officer and Target will search for a new chief guest experience and marketing officer.
- As a result, Chief Commercial Officer Rick Gomez will exit the company and Jill Sando, chief merchandising officer for apparel and accessories, home and Fun101, will retire. Gomez will transition to an adviser role to support the transition and serve as a nonexecutive officer until April 17, per a filing from Target.
Dive Insight:
Now at the helm, Fiddelke is making his mark on the company’s executive leadership in a move that means two long-term company veterans will exit. Gomez has worked at Target since 2013, while Sando has been at the company for 29 years.
"It's the start of a new chapter for Target and we're moving quickly to take action against our priorities that will drive growth within our business," Fiddelke said in a statement. "These leadership changes align the right talent and expertise with key roles, and simplify our structure so we can advance our strategy with greater speed, clarity and accountability."
Target at the same time reiterated fourth quarter guidance provided in November, which anticipates a low-single-digit decline in sales.
In her new role, Sylvester will focus on strengthening and expanding Target's “authority in style and design” through merchandising, product development, assortment design and collaborations, per the release. This is a return to the merchandising side of Target for Sylvester, who has worked at the company for over 18 years and previously served in various merchandising positions.
Meanwhile, Roath is tasked with scaling the retailer’s style and design focus across all operational functions.
When Fiddelke was named as the company’s next CEO last year, some industry analysts questioned if he would merely maintain the status quo for a retailer that was undergoing a turnaround effort. The executive has worked at Target since 2003 and formally took on the CEO position earlier this month, with his predecessor Brian Cornell now serving as executive chair of Target’s board of directors for an indeterminate amount of time.
But since Fiddelke’s appointment was announced, the retailer has enacted major changes that have included corporate layoffs and an expansion into AI-based commerce.
“We view these leadership actions under new CEO Michael Fiddelke as directionally positive for [Target],” Jefferies analysts led by Corey Tarlowe said in an emailed note. “While initial investor concerns centered on the risk that an internal CEO appointment could perpetuate the status quo, we believe the refresh of C‑suite roles meaningfully improves execution potential and injects renewed strategic momentum into the organization.”
The C-suite changes also follow news in January that John Hoke, former chief innovation officer at Nike Inc., will join the board of directors in March. Former HanesBrands CEO Steve Bratspies will also join the retailer’s board in April.
