- In today’s CEO Daily: Fortune‘s Phil Wahba reports on Target’s new CEO starting his tenure on the hot seat.
- The big story: Elon Musk combines xAI and SpaceX as he pursues data centers in space.
- The markets: Stocks rebound globally after days of volatility.
- Plus: All the news and watercooler chat from Fortune.
Good morning. If you read brand new
Target CEO Michael Fiddelke’s
first message as chief to customers, employees and partners, you could be forgiven for not realizing that the retailer currently finds itself in the maelstrom surrounding immigration raids across the country, especially in its hometown of Minneapolis.
Fiddelke, who officially took the reins of the struggling retailer on Sunday,
laid out in a note on LinkedIn and on Target’s website on Monday what his priorities are as he takes over. They include restoring Target’s leadership in cheap-chic merchandise, making its stores and website easier and more pleasant to use, more fully leveraging tech to improve customer experience and operations, and “strengthening” employees and “growing alongside the communities” where Target runs its stores.
While these kinds of CEO messages are typically aimed at employees to give them insight into a new leader’s strategy, it’s clear that current events won’t let Fiddelke just get on with business.
Demonstrations have recently taken place at about two dozen Target stores in Minnesota as well as in other cities, including Chicago, Los Angeles, Philadelphia and New York. On Sunday, the American Federation of Teachers, which says its members own nearly 7 million shares via the pension funds in which they participate,
called for Target to speak out against ICE. And on Monday, protesters at Target headquarters in Minneapolis demanded that the company take a stronger position against ICE. (A Target spokesperson said Fiddelke’s note was intended to underscore his strategy to employees and partners, and that his priorities include employee safety.)
Target has addressed the recent unrest in Minneapolis and St. Paul, but as part of a 60-company message from Minnesota Chamber of Commerce that called for “an immediate deescalation of tensions.” Indeed, corporate America has been much
more shy to directly criticize the U.S. government than it was in 2020 during that period of social unrest.
Many commentators on Fiddelke’s
LinkedIn post said Target’s comeback wouldn’t happen without addressing ICE and the fact that it has backed away from DEI initiatives as the political winds shifted. “If you want to lead with purpose, stop letting ICE stage on your property in locations all over Minnesota,” one person wrote. Another wrote: “Please reinstate DEI to get your customers back!”
In his message, Fiddelke wrote that “in the weeks ahead, my focus is simple: listen closely, move with clarity and urgency, and lead with purpose.” Fiddelke is very comfortable talking broadly about winning back consumer trust—meaning offering the products they want at good prices. But now Target finds itself having to contend with customers who feel let down by the brand and what they thought it stood for. Winning back that trust may be an even bigger challenge.
—Phil WahbaContact CEO Daily via Diane Brady at diane.brady@fortune.com
