Target in turmoil: CEO Brian Cornell to step down

Michael Fiddelke, Target's current Chief Operating Officer, will be the new CEO

Transcript

00:00Target is shaking up the corner office as it loses ground to competitors like Walmart.

00:05CEO Brian Cornell is stepping down.

00:08After 11 years, his exit was widely expected.

00:11Some analysts argued for an outside hire, but Target is keeping it internal.

00:16On February 1st, Cornell will hand the reins to Chief Operating Officer Michael Fidelke,

00:21a 20-year veteran who started as an intern.

00:24Cornell calls him the right candidate to lead the business back to growth.

00:27Now, Cornell will stay on as Executive Chairman.

00:31Since taking over in 2014, he's credited with revamping stores

00:35and expanding Target's online business to compete with Amazon.

00:39But the past few years, Target has struggled with weak sales,

00:42market share losses, and shifting consumer habits.

00:45Meanwhile, Fidelke says he'll focus on three key priorities,

00:49restoring Target's reputation for stylish, unique products,

00:52creating a more consistent shopping experience,

00:55and using technology to run the business more efficiently.

00:58Wall Street doesn't seem convinced.

01:01Shares are tumbling Wednesday, even after Target topped earnings expectations

01:05and reaffirmed its full-year outlook.

01:07That'll do it for your daily briefing.

01:09From the New York Stock Exchange, I'm Caroline Woods with The Street.