Target CEO Brian Cornell Steps Down Amid Slumping Sales and DEI Backlash, Internal COO Michael Fiddelke Takes Over in 2026
Target Corporation announces that CEO Brian Cornell will step down on February 1, 2026, after eleven years at the helm. His departure comes as the retail giant grapples with slumping sales and criticism over its retreat on diversity, equity, and inclusion (DEI) initiatives.
Target’s board has chosen an internal candidate to replace Cornell: Michael Fiddelke, currently serving as chief operating officer, will take over the position. Fiddelke began his career with Target as an intern and has been a part of the company for twenty years.
Cornell will remain on board as executive chairman following his departure. He assumed leadership in 2014 and spearheaded a strategic transformation for Target, focusing on store remodels and enhancing the company’s online business to better compete with Amazon.
Despite these efforts, Target has faced persistent challenges, including strategic missteps and intense competition from rivals such as Walmart, Amazon, and Costco. The retailer reported a third consecutive quarter of declining sales on Wednesday, leading to a 10% drop in share prices during premarket trading.
Target’s stock performance this year has been among the worst in the S&P 500 index. Some analysts have criticized the company for promoting an internal candidate and argue that Target should have pursued an external perspective. Neil Saunders, a retail analyst at GlobalData Retail, expressed concerns about entrenched groupthink within the company:
“Target, once known for its attentiveness to consumer demand, has lost touch with delivering for American shoppers.”
The last few years have been challenging for Target, but 2025 has proven particularly tumultuous. Early this year, the company discontinued several of its DEI programs, prompting backlash from supporters of diversity and inclusion policies. Customers expressed their disapproval online, while Anne and Lucy Dayton—daughters of one of Target’s co-founders—accused the company of betrayal.
Target’s decision to roll back its DEI initiatives has put additional pressure on the retailer due to its deeply ingrained commitment to diversity and inclusion in its business model, as well as its progressive customer base. Additionally, factors such as tariffs and a consumer slowdown have added to Target’s woes.
Target’s focus on trendier items and non-essential merchandise (more than half of its offerings are discretionary) has been impacted by shoppers shifting their spending towards essential goods like food and household basics. Roughly half of Walmart’s business comes from groceries, making it less susceptible to these trends.
Furthermore, Target imports around half of its merchandise, compared to approximately a third at Walmart. This means that Target must raise prices at almost double the rate of its competitor to offset the impact of tariffs, as Bank of America analyst Robert Ohmes explained in a recent report:
“Target’s long-term outlook is deteriorating. Target is falling behind peers and faces tougher challenges.”
Analysts are divided on whether Target can recover from its current struggles or if drastic changes are needed to revitalize the business. While some believe the issues are solvable, others argue that more radical measures may be required.