Target CEO Michael Fiddelke made his first substantial leadership changes since taking over this month, reshaping executive roles as the retailer tries to improve operations and sales. The company said Tuesday that it is moving quickly to address priorities it linked to growth, and that several top executives will shift positions ahead of the changes taking effect Sunday.
Fiddelke’s plan begins with a leadership exit: Rick Gomez, the 13-year Target veteran who oversees the company’s inventory of merchandise, will leave the retailer. The company also said Jill Sando, its chief merchandising officer who oversees categories including apparel and home, will retire. Both Gomez and Sando will remain with Target for a short time to help manage the transition.
In the restructuring, Target said Lisa Roath will take the role Fiddelke previously held as chief operating officer. The retailer also said Cara Sylvester, who had been chief guest experience officer, will become the company’s chief merchandising officer, moving her into merchandise oversight.
Fiddelke said the changes are intended to help Target “move with greater speed” as he starts a new phase for the company, according to a release. He also told employees through the company’s internal communications that the leadership changes are part of action on priorities the company said it needs to address to drive growth within its business.
Target also said it is maintaining its profit guidance. At the same time, the company is increasing investment in store staffing while cutting about 500 jobs at distribution centers and regional offices, according to a memo sent to employees that Target shared with The Associated Press.
The company’s workforce cuts represent a small share of its overall staffing base, which totals more than 400,000 employees, the report said. Industry analysts were surprised that Target chose an insider to lead the turnaround, noting the retailer has struggled operationally in recent years.
Customers have also complained about problems such as disheveled stores and the loss of a budget-priced niche that helped earn the retailer the nickname “Tarzhay.” Target has also faced consumer boycotts and backlash after the retailer scaled back its corporate diversity, equity and inclusion initiatives.
Separately, Target has faced protests tied to what critics say is an insufficient response to President Donald Trump’s aggressive immigration enforcement tactics in Minneapolis. In the report, the company did not comment publicly after federal agents detained two employees this month at a store in Richfield, Minnesota, though Fiddelke sent a video message to the company’s 400,000 workers calling the violence “incredibly painful.”
Protests are set to continue Wednesday at more than two dozen Target locations nationwide, including Los Angeles, Chicago and Raleigh, North Carolina. Luis Argueta, a spokesperson for Unidos Minnesota—an immigrant-led advocacy organization that is part of the ICE Out Now coalition—said he expects a big turnout at the Richfield store.