New Era for Retail Giants: Target Seeks Turnaround as Walmart Builds on Momentum

Two of America's largest retailers ushered in new leadership this week, but the challenges awaiting each executive could hardly be more different. Michael Fiddelke assumes the CEO role at Target as the company grapples with sustained sales declines, while John Furner steps into the top job at Walmart amid a period of remarkable expansion and market confidence.

"This isn't just a changing of the guard; it's a tale of two strategies," said Oliver Chen, senior equity research analyst at TD Cowen, in a recent CNBC interview. "Target is in clear need of a strategic reinvention to recapture its core customer. Walmart, conversely, is executing a playbook of continuation—refining a formula that's clearly working."

For Target, the Fiddelke era begins under pressure. The retailer has reported year-over-year revenue drops for four consecutive quarters, hampered by cautious consumer spending on non-essentials and some merchandising missteps. Analysts note the company was slower than rivals to develop a robust, fast delivery network, a gap that allowed competitors to gain ground. The market has reflected these struggles: Target's stock has fallen more than 20% over the past year.

In a company-wide memo, Fiddelke outlined a recovery plan centered on leveraging technology—including AI—to enhance the in-store and digital experience and refine product assortments. "We have a clear understanding of our identity and our unique place in retail," he stated. "The path forward involves sharp execution on the opportunities in front of us." Despite this optimism, analyst consensus, aggregated by Visible Alpha, suggests a cautious outlook, with an average price target of $94 for shares currently trading around $110.

Meanwhile, Furner takes over a Walmart in a position of strength. The retail behemoth has successfully attracted higher-income shoppers by emphasizing value on essentials and expanding same-day delivery services. Its aggressive push into e-commerce and AI-driven marketing has been rewarded with inclusion in the Nasdaq 100 index, a landmark achievement signaling its evolution into a tech-forward enterprise.

"Our strategy is solid, and we have significant momentum," Furner remarked on a recent conference call, pointing to the company's investments in automation and online infrastructure as key drivers. This confidence is echoed on Wall Street; Walmart shares have surged approximately 26% in the past year, trading near $124—closely aligned with the Visible Alpha average price target of $125.

While both companies promoted longtime insiders to the CEO role, suggesting a preference for operational familiarity over external disruption, their immediate trajectories appear set on divergent courses. The coming quarters will test whether Fiddelke's blueprint for reinvention can reignite growth, or if Furner's mandate of continuation can sustain Walmart's current ascent.

Market Voices: Reactions from the Floor

David Park, Portfolio Manager at Sterling Capital: "Promoting from within signals stability, but the contexts are opposites. Walmart is fine-tuning a winning engine. Target is attempting a mid-flight repair. The risk-reward profile for investors is markedly different."

Maria Rodriguez, Retail Analyst at ClearView Insights: "Fiddelke's tech and AI focus is necessary, but it's a long-term bet. The immediate issue is inventory mix and traffic. Walmart's momentum with affluent shoppers is a masterclass in value proposition expansion."

Leo Crawford, Independent Shareholder & Former Supply Chain Executive: "Target's board is rewarding tenure over vision. This 'safe' pick feels like a capitulation. They're playing catch-up on logistics while Walmart is already deploying AI at scale. One is building the future; the other is fixing the past."

Susan Lee, Small Business Owner & Frequent Shopper: "As a customer, I see Target trying to find itself again—the joy is missing. Walmart feels efficient and predictable. The new CEOs need to remember it's not just about stock prices, but about why people choose to walk through their doors."