Good morning. If you read brand new Target CEO Michael Fiddelke first message as leader Customers, employees and partners could be forgiven for not realizing that the retailer currently finds itself in the whirlwind surrounding immigration raids across the country, particularly in its hometown of Minneapolis.
Fiddelke, who officially took the reins of the struggling retailer on Sunday, presented in a note on LinkedIn and on Target’s website Monday, what his priorities are as he takes office. These include restoring Target’s leadership in chic and inexpensive products, making its stores and website easier and more enjoyable to use, leveraging more technology to improve the customer experience and operations, as well as “empowering” employees and “growing alongside the communities” where Target operates its stores.
While these types 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 allow Fiddelke to just go about his business.
Protests recently took place at about two dozen Target stores in Minnesota as well as 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 through the pension funds they participate in, called Target to denounce ICE. And on Monday, protesters at Target’s Minneapolis headquarters demanded that the company take a stronger stance against ICE. (A Target spokesperson said Fiddelke’s memo was intended to emphasize its strategy to employees and partners, and that its priorities include employee safety.)
Target addressed the recent unrest in Minneapolis and St. Paul, but as part of a message from 60 businesses from the Minnesota Chamber of Commerce calling for “an immediate de-escalation of tensions.” Indeed, American companies have been much more more timid to directly criticize the US government than it was in 2020 during this period of social unrest.
Many commentators on Fiddelke LinkedIn The post said Target’s return wouldn’t happen without addressing ICE and the fact that it has moved away from DEI initiatives as the political winds have shifted. “If you want to lead with purpose, stop letting ICE scene on your property all over Minnesota,” one person wrote. Another wrote: “Please reinstate DEI to get your customers back!
In his message, Fiddelke wrote that “in the coming weeks, my goal is simple: listen attentively, act with clarity and urgency, and lead with purpose.” Fiddelke is very good at regaining consumer trust, that is, offering them the products they want at good prices. But now Target finds itself faced with customers who feel disappointed by the brand and what they thought it stood for. Regaining that confidence could prove an even bigger challenge.—Phil Wahba
Contact the CEO daily via Diane Brady at diane.brady@fortune.com
Leadership news
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AI may not be affecting the job market as some suspect…
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…but the changes in the role of the CEO are very real
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The markets
S&P 500 Futures Contracts are up 0.19% this morning. The last session closed up 0.54%. STOXX Europe 600 was up 0.43% at the start of the session. United Kingdom FTSE100 was down 0.12% at the start of the session. from Japan Nikkei 225 was up 3.92%. China CSI300 was up 1.18%. South Korea KOSPI was up 6.84%. India NIFTY50 was up 2.56%. Bitcoin was at $78,000.
Around the water fountain
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Devon Energy CEO: ‘Stars align’ to acquire Coterra for nearly $26 billion as merger mania returns to oilpatch by Jordan Blum
Top AI leaders beg people not to use Moltbook, a social media platform for AI agents: it’s a ‘disaster waiting to happen’ by Eva Roytburg
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CEO Daily is compiled and edited by Joey Abrams, Claire Zillman and Lee Clifford.
