Additional Coverage:
Target CEO Brian Cornell Steps Down Amidst Slumping Sales and DEI Backlash
Target CEO Brian Cornell will step down on February 1, 2026, after 11 years leading the retail giant. His departure comes as the company grapples with falling sales and continues to face criticism over its recent retreat on diversity, equity, and inclusion (DEI) programs.
While Cornell’s exit was anticipated, Target surprised some industry analysts by appointing an insider, current COO Michael Fiddelke, as his successor. Fiddelke, a 20-year Target veteran who began his career there as an intern, was selected from a pool of both internal and external candidates. Cornell, who will transition to the role of executive chairman, expressed confidence in Fiddelke’s ability to steer the company back to growth.
Cornell took the helm of Target in 2014 and initially spearheaded a successful revitalization strategy, focusing on store remodeling and bolstering the company’s online presence to compete with Amazon. However, in recent years, Target has experienced a significant downturn, attributed to strategic missteps, increased competition from rivals like Walmart, Amazon, and Costco, and shifting consumer spending patterns.
The company reported its third consecutive quarter of declining sales, leading to a 10% drop in premarket trading and placing Target’s stock among the worst performers in the S&P 500 this year. This decline reflects investor concern and criticism from analysts who question the choice of an insider to lead the company in a new direction.
The retailer’s struggles intensified in 2025 following the decision to scale back some of its DEI initiatives. This move sparked significant backlash from supporters of diversity and inclusion, including boycotts and public criticism, further impacting sales. The company acknowledged the negative impact of this decision on its performance.
Adding to Target’s woes are changing consumer habits and economic pressures. With a product mix heavily weighted toward discretionary items like home goods and apparel, Target has been particularly vulnerable to the current consumer trend of prioritizing essential purchases. Tariffs have also posed a challenge, impacting Target more significantly than competitors due to its higher reliance on imported goods.
Cornell’s tenure at Target began with considerable success. In 2018, the company reported its best results in a decade, and Cornell was recognized as CNN Business’ CEO of the Year in 2019.
The company also saw a surge in sales during the pandemic. However, this momentum faltered in 2022 as the company faced excess inventory and shifting consumer demand.
Further controversy arose in 2023 when Target faced criticism and boycotts over its LGBTQ-themed merchandise during Pride Month.
Fiddelke acknowledged the need for improvement and outlined a plan to revitalize the company, focusing on trendier merchandise, enhancing the in-store experience, and investing in technology. He also addressed the impact of tariffs, stating that price increases would be a last resort. Despite these assurances, analysts remain divided on Target’s future prospects.