Wall Street had hoped the big box retailer would hire someone from outside the company. Target's stock is down about 60% since 2021.

Michael Fiddelke, Target's current chief operating officer, will replace CEO Brian Cornell on Feb. 1 as the retailer works on its turnaround strategy.

Target named Michael Fiddelke as its new CEO, effective Feb. 1. Target beat Wall Street's earnings and sales expectations and reaffirmed its outlook on Wednesday, even as the discounter's sales and traffic across its stores and website declined.