New York — Target CEO Brian Cornell is stepping down after 11 years at the helm, as the retailer struggles with declining sales and fallout from its recent retreat on diversity, equity, and inclusion (DEI) programs. Cornell’s departure, effective February 1, 2026, was widely anticipated. He will be succeeded by Michael Fiddelke, Target’s current chief operating officer, who has spent 20 years at the company, starting as an intern.
Cornell, who took over in 2014, is credited with revitalizing Target through store remodels and an expanded online presence to compete with Amazon. However, the company has faced a prolonged slump, with customers buying fewer home goods and clothing. Competition from Walmart, Amazon, and Costco has also intensified. Target reported its third consecutive quarter of declining sales on Wednesday, sending shares down 10% in premarket trading. Its stock is among the worst performers in the S&P 500 this year.
Investors had hoped for a fresh perspective from an outside leader. Some analysts criticized the board’s choice of an internal successor, suggesting it may perpetuate entrenched groupthink. “Target, which used to be very attuned to consumer demand, has lost its grip on delivering for the American shopper,” said Neil Saunders of GlobalData Retail.
Target’s recent struggles have been compounded by its rollback of DEI programs, which angered supporters and some co-founders’ families, and sparked online protests and boycotts. “We felt like it was a stark betrayal,” said Rev. Jamal Bryant, who led a boycott against the company.
Economic pressures, including rising tariffs and a shift in consumer spending toward essentials, have further hurt Target. Unlike Walmart, which relies heavily on groceries, more than half of Target’s inventory is discretionary, and roughly half is imported—necessitating larger price increases to offset tariffs.
Fiddelke acknowledged the challenges, saying Target “must improve” and is “not realizing our full potential right now.” He outlined plans to bring trendier merchandise to stores, enhance the in-store experience, and invest in technology initiatives like “Fun 101,” designed to capture the latest trends in electronics and home goods.
Analysts remain divided on Target’s outlook. Some believe the company can recover with careful adjustments, while others warn that structural issues and intense competition may require more drastic changes. “Target’s long-term outlook is deteriorating,” said Bank of America analyst Robert Ohmes. “It is falling behind peers and faces tougher challenges ahead.”
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