New Target CEO Michael Fiddelke aims to boost clothing, home goods

MINNEAPOLIS — When shoppers browse Target‘s aisles this fall, they will see purses with fringe accents, dresses made of suede-inspired fabrics and hats with a cowgirl flair. As winter comes, they’ll find cozy sweaters with a ski lodge spin.

Target’s creative team has traveled the world to find inspiration for its brands, from a rodeo in Colorado to ski lodges in the French Alps and restaurants in New York’s Hudson Valley.

With global trips, an artificial intelligence-powered tool and sharper critiques of its own merchandise, the big-box retailer wants to get back to its roots: designing attention-grabbing, fashion-forward clothing and home decor at an affordable price.

Target’s merchandise was once a competitive advantage, but even the company admits it has lost that edge. The big-box retailer’s sales have declined in some categories that it’s best known for, such as home goods, as competitors lure away customers.

As consumers’ enthusiasm for Target’s offerings has faded, annual sales have been roughly flat for four years, and the company expects sales to decline this year. Shares of Target have tumbled about 35% in the last year, as its own merchandising issues, a sloppier store experience and boycotts over its rollback of diversity, equity and inclusion programs all weigh on its business. Discretionary items, long a strength for Target, have also become a tougher sell for shoppers, as groceries and rent hit household budgets.

The company is undergoing major changes as it tries to reverse its struggles. Last week, the retailer announced it would cut 1,800 corporate jobs — its largest round of layoffs in a decade.

Target is also gearing up for a leadership transition. Michael Fiddelke, the company’s chief operating officer and former chief financial officer who has spent two decades at the company, will start as Target’s CEO in February as Brian Cornell retires.

In an interview with CNBC at Target’s Minneapolis headquarters, Fiddelke outlined his three key priorities as he steps into the company’s top job: regaining Target’s reputation for style and design, providing a more consistent customer experience and using technology to speed along the business.

He said elevating Target’s merchandising authority — which earned it the nickname “Tarzhay” among shoppers — “is a critical first priority for me.”

“When we lead with style and design, when our guests can walk into a Target store or scroll through the app and find that stylish, unique thing that ideally they could only find at Target, that’s at an unexpected value, that’s…