Target saw its same-store business struggle, although it returned to positive same-store sales in its most recent quarter. This represents a comeback after several quarters of same-store sales decline.
Those numbers pale in comparison to rivals Walmart and Costco.
Target CEO Michael Fiddelke believes his chain needs to make significant efforts to improve its in-store experience. He talked a lot about those changes during Target’s third-quarter earnings call.
As a Target shopper and avid retail watcher, I’ve noticed longer cashier lines and frequent self-checkout delays when multiple machines require managerial assistance.
This aligns with comments from Fiddelke, who stated on the Q3 earnings call that improving store operations and associate availability is a top priority.
“Let’s turn now to our team’s efforts to elevate the guest shopping experience, both in-store and digital, a great guest experience means many things, but it starts with a warm, friendly and helpful team,” he said.
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This is not just asking workers to smile and greet customers. The CEO wants to give employees more time to be hands-on interacting with customers.
“In the stores, we are making changes to give our team members more time to focus on what matters most, which is to spend time helping our guests. Through improved digital tools, we are reducing the time dedicated to backroom tasks through more efficient unloading and stocking of trucks. Every hour we save is being reinvested to allow more guest interaction with a focus on friendship and the Target service,” he added.
Target aims to elevate the guest’s shopping experience.Shutterstock” loading=”eager” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Target aims to elevate the guest’s shopping experience.Shutterstock
As part of its new CEOs’ store turnaround plan, Target implemented a new 10-4 policy for workers. Require employees within 10 feet of customers to smile, make eye contact, nod, and use friendly, approachable, and welcoming body language.
That seems to miss the point, GlobalData Managing Director Neil Saunders wrote on RetailWire.
“Rather than ordering smiles, Target’s senior management should give associates reasons to be naturally cheerful. Unfortunately, they have failed miserably in this task in recent years by overwhelming associates with work, not listening to them, and not making appropriate investments in stores and processes.”
Brad Halverson, another member of the RetailWire Brain Trust, agrees with Saunders.
“Target management should instead focus on giving store employees tools to take care of customers, solve problems, and make their shopping journey better. Then in the process, yes, it’s OK to ask, even mandate, store teams to be friendly and greet customers,” he posted.
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While the selection was expected, some analysts think Target has put its turnaround in the hands of someone who helped lead the chain to its current situation.
“We are not surprised by the news, as Mr. Fiddelke was groomed to become CEO, evidenced by his multiple leadership roles, including COO and CFO,” said Telsey Advisory Group analysts led by Joe Feldman in a note shared with Retail Dive.
“We expect a smooth transition of leadership, although we are not sure how Mr. Fiddelke will change the strategy he helped create.”
Ougoing CEO Brian Cornell’s blessing can also be seen as a mixed bag.
“Since arriving at Target, I have consistently relied on Michael’s strategic insight and sound judgment when making decisions,” Cornell told analysts on an earnings call. “And he played a critical role in advancing key initiatives that grew and sustained our business.”
Saunders also told RetailDive that Cornell staying on as executive chairman seemed like an odd choice.
“For us, this seems like a reward for failure. There is also the risk that the person who did not guide Target well will have some influence on future policy. In our view, the boardroom needed a clear exit but, instead, it received a light brushing that failed to address the debris that lands on the ground,” he said.
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This story was originally published by TheStreet on December 23, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.
