Fiddelke, an Iowa native and University of Iowa graduate, has been with Target since 2003, starting as an intern. Investors reacted negatively to the appointment, causing Target's shares to drop over 6%. An Iowa native and University of Iowa graduate will be the new top executive of Target, one of the nation's largest retail chains.

The company — one of Minneapolis' largest employers — announced the leadership transition on Aug. 20. Michael Fiddelke, Target's current chief operating officer, will succeed Brian Cornell as chief executive officer, the company said in a release.

Target has been cutting costs to cope with tariffs, a sign of the tough conditions its next chief will have to navigate.