Did Target’s CEO miss the mark by ignoring Minnesota?

Good morning. If you are reading recently Batas CEO Michael Fiddelke’s first message as chief of customers, employees and partners, you could be forgiven for not realizing that the retailer currently finds itself in the maelstrom surrounding immigration attacks across the country, especially in its hometown of Minneapolis.

Fiddelke, who officially took charge of the struggling retailer on Sunday, put in a note on LinkedIn and on Target’s website on Monday what his priorities are for his replacement. These include restoring Target’s leadership in affordable chic merchandise, making its stores and website easier and more beautiful to use, more fully utilizing technology to improve the customer experience and operations, and “empowering” employees and “growing with the communities” where Target operates its stores.

While these types of CEO messages are usually aimed at employees to give them insight into a new leader’s strategy, it is clear that current events will not allow Fiddelke to continue in business.

Demonstrations recently took 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 said its members own nearly 7 million shares through 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 spokeswoman said Fiddelke’s note was intended to highlight his strategy to employees and partners, and that his priorities include employee safety.)

Target responded to the recent riots in Minneapolis and St. Paul, but as part of a message to 60 companies from the Minnesota Chamber of Commerce that called for “an immediate reduction in tensions.” In fact, there are many companies in America more shy of direct criticism of the US government than in 2020 during the social upheaval.

Many commentators on Fiddelke’s LinkedIn The post says Target’s return will not happen unless ICE is addressed and the fact that it has backed away from DEI initiatives as the political winds shift. “If you want to lead with purpose, stop allowing ICE to stage your property in locations across Minnesota,” one person wrote. Another wrote: “Please bring DEI back to get your customers back!”

In his message, Fiddelke wrote that “in the coming weeks, my focus is simple: listen carefully, act with clarity and urgency, and lead with purpose.” Fiddelke is very comfortable talking broadly about regaining consumer trust—meaning offering the products they want at a good price. But now Target finds itself having to contend with customers who feel let down by the brand and what they think it stands for. Regaining that trust will be an even greater challenge.—Phil Wahba

Contact CEO Daily by Diane Brady at [email protected]

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