Incoming Target CEO Michael Fiddelke faces a tough road to success, competing with price leader Walmart. Former Gap and J.Crew CEO Mickey Drexler stresses the importance of quality merchandise. Target has issued warnings about its business and plans to increase capital expenditures in 2026.

Fiddelke, a Target veteran, will officially take over as CEO on Feb. 1, 2026. Target’s stock is down 34% this year, while Walmart’s stock has risen 23%. Most analysts give Target’s stock Neutral or Sell ratings. Drexler acknowledges Walmart’s success, along with Costco’s.

Read more at Yahoo Finance: Former Gap CEO reveals the only thing that could save Target