Target needs a hard reset on strategy, Wall Street believes. And new CEO Michael Fiddelke may not be the person to do it.

Target Corp. named veteran Michael Fiddelke as its next chief executive officer, betting that the insider will revive the storied retailer struggling with weak sales.

The retail giant Target announced that Chief Operating Officer, Michael Fiddelke, will take over as chief executive in February next year when the current CEO steps down. Wall Street appears less than enthusiastic about the choice,

Between the pandemic upending shopping habits five years ago and the economy causing consumers to tighten their purse strings in 2025, it’s been a tumultuous half decade for retailers.

As of Thursday’s close, shares of Walmart were up 114% over the past three years, while those of Target have slid 42%. Following their most recent quarterly earnings this week, analysts pointed to a variety of reasons for that gulf — from the practical and financial to the existential.

Walmart Inc. powered through an uncertain economic environment and tariff concerns to deliver solid second-quarter financial results Thursday, showing it keeps pulling in shoppers and outpacing peers like Target.