New York – Target announced Wednesday that CEO Brian Cornell will step down after an 11-year tenure, as the retailer grapples with declining sales and recent controversy. Cornell will be replaced by Michael Fiddelke, the company’s current chief operating officer, on February 1, 2026. The news comes as Target reported its third consecutive quarter of falling sales, causing shares to drop 10% in premarket trading.
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Cornell, who will remain as executive chairman, is credited with revitalizing Target during his early years by remodeling stores and strengthening its online business to compete with Amazon. However, the company has been in a “deep slump for years,” facing intense competition and several strategic missteps.
Customer Shift and Company Controversies
Target’s recent struggles are attributed to a combination of economic pressures and internal decisions. The retailer has been particularly hard-hit by a consumer slowdown, as shoppers shift their spending from discretionary items to essentials like food. More than half of Target’s merchandise is nonessential, whereas groceries account for about half of Walmart’s business.
The company has also faced significant public backlash that has impacted its sales.
- DEI Retreat: Earlier this year, Target ended some of its Diversity, Equity, and Inclusion (DEI) programs, a move that angered supporters and was acknowledged by the company to have hurt sales. The decision was called “a betrayal” by the daughters of one of Target’s co-founders.
- Pride Month Backlash: In 2023, the company faced attacks from right-wing activists and customers over its LGBTQ-themed Pride Month merchandise. After employees faced threats, Target removed some items from stores, leading to a drop in sales and lawsuits.
An Insider Appointment and Analyst Concerns
The choice of Michael Fiddelke, a 20-year company veteran who started as an intern, has drawn criticism from some analysts who believe an outside perspective was needed. Neil Saunders, an analyst at GlobalData Retail, stated that the move “does not necessarily remedy the problems of entrenched groupthink” and that Target “has lost its grip on delivering for the American shopper”. This sentiment is reflected in Target’s stock performance, which is among the worst in the S&P 500 this year.
Incoming CEO Michael Fiddelke acknowledged the company’s challenges on a call with analysts, stating, “We must improve” and “we are not realizing our full potential right now”. He outlined a plan to revive the business by introducing trendier merchandise, making stores more appealing, and investing in technology, including a new initiative called “Fun 101”.
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