Target CEO Brian Cornell to Step Down as Retailer Struggles with Falling Sales
New York — Target announced that longtime CEO Brian Cornell will step down after 11 years at the helm, as the retail giant faces slumping sales, customer backlash, and increasing competition.
Cornell, who became CEO in 2014, will officially be replaced on February 1, 2026 by Michael Fiddelke, the company’s current Chief Operating Officer. Fiddelke, a 20-year Target veteran who began as an intern, was chosen from both internal and external candidates.
Cornell will stay on as Executive Chairman.
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Target’s Sales Slump and Leadership Change
Target has struggled in recent years with declining demand for home goods and clothing. On Wednesday, the company reported its third consecutive quarter of falling sales, sending its stock down 10% in premarket trading. Shares of Target (NYSE: TGT) are among the worst performers in the S&P 500 in 2025.
Industry analysts believe the appointment of another insider may not bring the sweeping changes Target needs.
“This internal appointment does not remedy the problems of groupthink and inward-looking strategy that have plagued Target for years,” said Neil Saunders, analyst at GlobalData Retail.
Backlash Over DEI Retreat and Consumer Slowdown
In 2025, Target ended several of its diversity, equity and inclusion (DEI) programs, sparking outrage among loyal customers and even members of the founding Dayton family. Boycotts and online criticism followed, contributing to lower sales.
At the same time, tariffs and inflation pushed up prices, while shoppers shifted spending toward essentials like groceries—an area where competitors like Walmart, Amazon, and Costco dominate.
More than half of Target’s merchandise is discretionary, compared with only one-third at Walmart. With around 50% of products imported, Target is more exposed to tariffs than rivals.
Target’s Rocky Journey Under Cornell
Cornell’s early years were marked by success. In 2018, Target posted its best results in a decade, and in 2019, Cornell was named CNN Business CEO of the Year. The retailer thrived during the pandemic as shoppers stocked up on essentials, home goods, and electronics.
But the company stumbled in 2022 due to overstocked inventory and inflation pressures. The following year, Target faced conservative backlash over its LGBTQ-themed Pride merchandise, which further dented sales and reputation.
New CEO’s Plans for Recovery
Incoming CEO Michael Fiddelke acknowledged Target’s challenges but promised a renewed focus on innovation and customer appeal.
He announced initiatives like “Fun 101”, aimed at bringing more trendy products to stores, refreshing the shopping experience, and investing in technology.
Fiddelke said raising prices will be a last resort, noting that Target has already adjusted product selection to soften the tariff impact.
Still, analysts remain divided. Some believe Target can bounce back with the right strategy, while others warn its long-term outlook is deteriorating.
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