After more than a decade at the helm, Target CEO Brian Cornell is stepping down, leaving behind a legacy of early successes overshadowed by recent challenges. His departure comes as the retailer struggles with declining sales, growing competitive pressure, and fallout from its decision to retreat on diversity, equity and inclusion (DEI) programs.

The company announced Wednesday that Cornell will be succeeded by Michael Fiddelke, Target’s current chief operating officer, on February 1, 2026. Fiddelke, who began his career at Target as an intern, has been with the company for 20 years. Cornell will remain as executive chairman.

📌 Story Highlights

• Target CEO Brian Cornell to step down after 11 years

• Michael Fiddelke, COO and longtime Target executive, to take over in 2026

• Sales decline for the third straight quarter; stock down 10% in premarket

• Analysts criticize insider appointment, warning of “groupthink”

• Target faces backlash after rolling back DEI programs

• Shoppers cut back on discretionary spending, hitting Target harder than Walmart

• New CEO vows trendier merchandise, store upgrades, and tech investments

Leadership Transition Inside Target

The decision to promote from within has drawn mixed reactions. Some analysts argued that Target needed “fresh eyes” and an external leader to reset its strategy. But the board chose continuity.

Cornell defended the choice, telling analysts:
“Michael was selected from a strong list of external and internal candidates. He is the right candidate to lead our business back to growth.”

Fiddelke, meanwhile, acknowledged the uphill battle ahead.
“We must improve,” he said. “We’re not realizing our full potential right now.”

Target’s Struggles Deepen

The leadership change comes at a time when Target sales have fallen for three straight quarters. Shares plunged 10% in premarket trading Wednesday, placing the company among the worst performers in the S&P 500 this year.

Retail analysts say the appointment of an insider reflects Target’s inward focus, which may not be enough to fix long-term problems.

Neil Saunders of GlobalData Retail warned:
“This internal appointment does not necessarily remedy the problems of entrenched groupthink and the inward-looking mindset that have plagued Target for years. Target, which used to be very attuned to consumer demand, has lost its grip on delivering for the American shopper.”

DEI Backlash and Consumer Shifts

Earlier this year, Target rolled back several of its diversity, equity and inclusion programs. The decision surprised both customers and stakeholders, including members of the founding Dayton family, who called it “a betrayal.”

Target admitted that the move damaged sales. The retailer faced further criticism because DEI policies had long been part of its corporate identity, and its progressive customer base reacted strongly.

At the same time, consumer spending has shifted toward essentials such as food and household goods. Target, known for trend-driven and discretionary items, has been hit harder than Walmart and Costco. Unlike Walmart, where groceries make up about half of sales, more than half of Target’s revenue comes from categories like clothing and home goods, which are currently in decline.

Tariffs and Import Pressures

Target’s reliance on imports has made matters worse. Roughly 50% of Target’s merchandise is imported, compared to about 33% at Walmart. This has forced Target to raise prices at nearly twice the rate of its rival to offset tariff costs.

Bank of America analyst Robert Ohmes explained:
“Target’s long-term outlook is deteriorating. Target is falling behind peers and has tougher challenges ahead.”

From Success to Stumbles

Cornell’s early years were marked by growth. He joined in 2014 and revitalized the retailer, focusing on store remodels and online expansion to compete with Amazon.

In 2018, Target delivered its best results in a decade. The following year, Cornell was named CEO of the Year by CNN Business for steering a turnaround. During the pandemic, Target became a household staple as Americans stocked up on essentials, home goods, and electronics.

But post-pandemic trends hurt the company. In 2022, Target was stuck with excess inventory just as inflation squeezed consumers. The following year, it faced social media backlash over Pride Month merchandise, which led to threats against employees, lawsuits from Republican-aligned groups, and the removal of some products from shelves.

Fiddelke’s Roadmap: “Fun 101”

As incoming CEO, Michael Fiddelke laid out a plan centered on innovation and customer appeal.

“We need to bring trendier merchandise, make our stores more engaging, and invest in technology to strengthen our business,” he said.

He highlighted a new initiative, “Fun 101,” aimed at capturing consumer excitement around trending items in electronics and home goods. Fiddelke added that raising prices would remain a “last resort” in response to tariffs, with adjustments to merchandise selection already underway.

Uncertain Future for Target

Despite these plans, Wall Street remains divided. Some see room for a rebound if Fiddelke can reconnect Target with its consumer base. Others warn that the company may need more drastic changes to reverse its slump.

As one analyst put it:
“The question isn’t whether Target can recover, but whether it can do so fast enough to keep pace with Walmart, Amazon, and Costco.”

For now, Target CEO Brian Cornell leaves behind a mixed legacy—praised for past innovation but handing off a company at a crossroads, with its next chapter resting on the shoulders of his longtime successor.

The exit of Target CEO Brian Cornell marks the end of a transformative yet turbulent era for the retailer. While Cornell is credited with modernizing stores, strengthening e-commerce, and steering Target through the pandemic boom, the company now faces a far more difficult retail landscape. Sales declines, tariff pressures, shifting consumer habits, and the backlash over DEI policies have left Target struggling to regain momentum.

With Michael Fiddelke set to take over in 2026, the retailer’s future will hinge on whether he can reconnect with customers, adapt to changing demands, and restore growth in the face of fierce competition from Walmart, Amazon, and Costco. For Target, the leadership change signals not just a transition at the top but also a critical test of its ability to remain a leading player in American retail.

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