The news: Target is overhauling its executive suite and store operations as it works to deliver on new CEO Michael Fiddelke’s turnaround strategy.

• Rick Gomez, Target’s chief commercial officer, and Jill Sando, chief merchandising officer in charge of apparel, home, and other categories, are leaving the company.
• Cara Sylvester, formerly chief guest experience officer, is now chief merchandising officer.

The retailer will also lay off roughly 500 people in supply-chain roles to free up funds that will be used to “put significantly more payroll” in stores, including more workers and hours, as well as training for every store employee, according to an internal memo from chief stores officer Adrienne Costanzo and chief supply chain and logistics officer Gretchen McCarthy seen by CNBC.

Why it matters: Fiddelke’s shakeups suggest he is wasting no time trying to get the retailer back on sound footing. While the company faces numerous external pressures—including weak discretionary demand, an extremely competitive environment, and unrest in its home market of Minneapolis—delivering a better, more consistent experience, along with more appealing merchandise are two factors within its control.

Target’s decision to look externally to fill its chief guest experience and marketing officer role is also revealing, given that most of its executive team—including its CEO—has long tenure at the company. That suggests that Target understands the value of having outside perspectives to address its challenges.

Implications for Target: Simplified store operations coupled with fresh leadership could help Target recover from several years of underperformance against its mass merchant competitors. The retailer desperately needs to end a streak of 12 quarters of flat or declining revenues, which is set to extend into Q4 after Target reaffirmed guidance for a low-single-digit sales decline.