Target CEO Brian Cornell Stepping Down as Retail Giant Faces Slump and DEI Backlash
Target CEO Brian Cornell is stepping down after 11 years in charge. The shift comes at a challenging moment for the retailer, which is facing dwindling sales and criticism over its recent rollback of diversity, equity, and inclusion (DEI) initiatives.
A Familiar Face Takes the Helm
Replace on February 1, 2026, COO Michael Fiddelke—a 20-year Target veteran who started as an intern—will step into the CEO position. Though some analysts hoped for fresh leadership, Cornell expressed confidence in the choice.
"Fiddelke is the right leader to guide us back to growth," said Cornell, who will remain as executive chairman to support the transition.
A Time of Transformation…and Turbulence
When Cornell took the reins in 2014, his leadership sparked a surge in Target’s revival. He revamped the stores and expanded the brand's digital presence, positioning it to compete with giants like Amazon.
Things turned rocky in recent years. Target’s core categories—home goods and apparel—have lost momentum, partly due to fierce competition from Walmart, Amazon, and Costco. The result? Three straight quarters of falling sales and a 10% decline in Target’s stock during pre-market trading.
Target is now one of the lowest-performing stocks in the S&P 500 this year.
Critics Warn of “Groupthink”
Some analysts believe sticking to internal promotion may not solve the chain’s deeper challenges.
“Choosing from within doesn’t resolve the entrenched groupthink,” said Neil Saunders from GlobalData Retail. “Target has lost touch with changing shopper needs.”
DEI Reversal Leaves Customers Feeling Betrayed
The past year was especially turbulent. Target’s rollback of DEI programs sparked backlash from customers—including Anne and Lucy Dayton, daughters of the chain's co-founder—who labeled the actions a “betrayal.”
Target admitted the decision cost them sales. The move hit harder for Target than other retailers because DEI had become central to its brand identity.
Tariffs, Consumer Shift, and Inflation Bite
With many of its products deemed non-essential—like fashion and home décor—Target has been hit particularly hard by shoppers prioritizing essentials amid economic strain.
Analyst Robert Ohmes from Bank of America noted that Target imports a higher portion of its merchandise than Walmart, making it more vulnerable to tariffs. To keep costs down, Target has begun adjusting its merchandise lineup—but steep price hikes remain a last resort.
Early Triumphs, Waning Fortunes
Carrying a victor’s badge, Cornell was named CNN Business CEO of the Year in 2019 after leading one of the rare retail success stories. The company surged during the pandemic, meeting consumer demand for essentials and home goods.
But once pandemic buying cooled off, Target suffered. A stockpile of unsold inventory left it over-stuffed at a time when inflation forced shoppers to cut back. Political storms followed, including threats over LGBTQ-themed Pride merchandise—sparking major backlash, misinformation, and the removal of certain products.
Fiddelke’s Roadmap to Recovery
New CEO Michael Fiddelke admits the company is underperforming but has a three-point plan:
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Bring trendier, eye-catching products back to shelves.
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Make in-store shopping more appealing.
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Invest in tech, especially with a new initiative dubbed “Fun 101” to tap into hot trends in electronics and home goods.
Fiddelke says Target is managing tariff pressures but expects price adjustments may become necessary.
Analysts Divided on Outlook
Some see hope:
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Tariffs can be navigated.
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Resource-rich segments like groceries and essentials could help steady the ship.
Others worry:
“Target’s long-term outlook is weakening,” said Ohmes. “It’s falling behind its peers and facing steep challenges ahead.”