Target Corp.’s new chief executive officer, Michael Fiddelke, acknowledged in his first town hall that the big-box retailer has lost trust with shoppers and employees and pledged to rebuild that connection.

“We weren’t clear enough about who we are as a company,” Fiddelke told staff on Wednesday, according to a recording viewed by Bloomberg News. “When we aren’t clear enough, that confuses people. We didn’t do enough to correct that confusion in the moment.”

Fiddelke is taking over as Target looks to address problems ranging from a lengthy sales slump to an abrupt pullback from its wide-ranging diversity initiatives as US President Donald Trump took office last year. The latter alienated some consumers and led to boycotts.

Target’s unclear position has hurt the company’s standing with consumers — especially Black shoppers — as well as staffers, Fiddelke said at the town hall. Last year was difficult, he said, adding that work is underway to reconnect with the customers Target has lost.

While Target wasn’t the only company to retreat from diversity policies last year, it garnered a backlash because it had made inclusivity a central part of its corporate identity.

Fiddelke, a Target veteran who started as an intern, took over as CEO on Feb. 1. He has pledged to improve the company’s merchandise and in-store experiences while using technology more effectively to run the business. During Wednesday’s meeting, he emphasized the company’s renewed focus on accelerating growth.

A Target spokesman said the company is moving with urgency and focus to accelerate its growth, and “is already seeing the progress.”

Immigration tensions

A sweeping federal immigration crackdown, which has sparked a wave of protests in the company’s home city of Minneapolis, has been a focal point in recent weeks. The death of two people at the hands of federal agents has caused protests to swell across the country while sparking deeper questions about companies’ interactions with the government.

Target has told employees that it doesn’t cooperate with any immigration enforcement agencies. Like most major corporations, it hasn’t weighed in on the enforcement operations. The company signed a collective letter urging an immediate “de-escalation of tensions” between state, local and federal authorities.

In response to a question on why Target hasn’t spoken on the topic more forcefully, Fiddelke said the company is prioritizing the safety of employees and that means being “careful” that it doesn’t inadvertently escalate tensions. The company is looking for the “most effective and constructive” means to address the issue, such as engaging with elected officials and taking steps to support its staff, according to Fiddelke.

Some store workers have called out of work at Target locations in the Twin Cities area amid the immigration raids, Bloomberg has reported. Others have shared concerns and frustrations about the company’s lack of a strong stance on internal Slack channels as well as circulating letters to Target’s ethics and leadership teams.

External organizations have also called on the company to speak out against federal immigration enforcement. The American Federation of Teachers, which represents 1.8 million teachers, nurses and public employees, called on Fiddelke to urge ICE agents out of Minnesota and requested an in-person meeting. Local activists have staged sit-ins at Target stores and headquarters in recent days. Protests have spread to other cities including Chicago.

On Wednesday, the Department of Homeland Security said it was immediately pulling 700 officers from Minneapolis, a reduction of about a quarter of the agents deployed there.

Inventory overhaul

Target, known for its “cheap chic” merchandise, has struggled in recent years with soft sales, low employee morale and political controversies. It has lost market share to competitors such as Walmart Inc. and Costco Wholesale Corp. The shares slumped 28% last year, while the S&P 500 Index rose 16%.

Going forward, Target will focus on key categories and the retailer is planning the deepest changes to its inventory in a decade, Fiddelke said in the town hall, adding that it’s not trying to be “the everything store.” The company will invest in store experiences in the coming years while working to make its merchandise easier to find online.

Wearing a red-and-white checkered shirt, a beige blazer and jeans on stage, Fiddelke said Target is seeking to create an assortment and experience that’s distinctive, and it’s using data and guest feedback to inform the strategy. Beverages, for example, have experienced higher demand due to its newer items, he said.

The company sees more opportunity to serve busy families, Fiddelke added. This includes merchandise for key milestones such as moving into homes and welcoming babies.

“We don’t get to just roll out of bed” and wake up to sales growth, he said. “We have to drive change in the business that gets that outcome. It’s hard work.”

©2026 Bloomberg L.P. Visit bloomberg.com. Distributed by Tribune Content Agency, LLC.