Target CEO Steps Down Amid Slumping Sales and Customer Backlash
Hey everyone, let’s talk about some big news coming out of the retail world. Target’s CEO, Brian Cornell, is stepping down after 11 years at the helm of the company. This move had been expected for a while, but it’s happening at a time when Target is really struggling with falling sales and some controversy over its decision to scale back certain diversity and inclusion programs.
Cornell has been credited with revitalizing Target since taking over in 2014. He led efforts to remodel stores and strengthen the retailer’s online business, helping Target compete with e-commerce giants like Amazon. During his early years, the company saw some of its best results in a decade and even thrived during the pandemic, when shoppers were stocking up on essentials and home goods. Cornell was even named CNN Business’ CEO of the Year in 2019 for steering this turnaround.
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But the past few years have been rough. Target has struggled with excess inventory, inflationary pressures, and shifting consumer priorities. Shoppers have been spending more on essentials like groceries and household basics rather than discretionary items like clothing and home decor, which make up over half of Target’s merchandise. On top of that, tariffs have made Target’s imported goods more expensive, forcing the company to raise prices faster than competitors like Walmart. These challenges have hit sales hard—Target recently reported its third straight quarter of falling revenue, and its stock has been one of the worst performers in the S&P 500 this year.
Adding to the strain, Target’s retreat on diversity, equity, and inclusion programs earlier this year sparked backlash from both customers and employees. Online protests erupted, and even the daughters of one of Target’s co-founders called the decision a “betrayal.” Analysts say this move may have hurt sales more than similar rollbacks at other companies because Target’s customer base tends to be more progressive, and DEI programs were deeply integrated into its business strategy.
The new CEO stepping in will be Michael Fiddelke, Target’s current chief operating officer. Fiddelke is a 20-year veteran of the company who started as an intern, and he’ll officially take over on February 1, 2026. Cornell will remain as executive chairman of the board. Fiddelke has acknowledged that things need to move “much faster” to get Target back to growth and emphasized his commitment to reviving the company’s performance.
So essentially, we’re looking at a company at a crossroads. Cornell’s tenure is ending just as Target faces intense competition, internal controversies, and changing consumer behavior. Whether Fiddelke can turn things around remains to be seen, but the pressure is definitely on to restore the retailer to its former strength.
Would you like me to break down what this could mean for Target’s stock in the coming months as well?
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