Target CEO Brian Cornell Steps Down Amid 64% Stock Decline and Stagnant Growth

Brian Cornell’s tenure at Target, which began in 2014, was once hailed as a turning point for the struggling retailer. When he took the helm, Target was grappling with high employee turnover, frequent out-of-stock items, and a fading brand image. Cornell, an outsider with prior experience at PepsiCo, Sam’s Club, and Michaels Stores, moved quickly to reset the company’s trajectory. He curtailed the failed Canada expansion, revitalized in-house brands, and launched a $7 billion store remodeling initiative in 2017 to integrate e-commerce with physical retail [1]. These moves initially paid off: Target’s stock soared, it gained market share during the pandemic, and its digital operations became a major strength [1].

However, by 2025, the momentum had stalled. Sales had declined for three consecutive years, and the stock had fallen 64% from its 2022 peak [1]. While Cornell had been lauded for his bold early decisions, his decision to extend his tenure through 2025 backfired. Competitors like Walmart capitalized on Target’s stagnation, offering fresher apparel and home goods that appealed to younger, design-conscious shoppers. At the same time, internal morale suffered, partly due to controversies around diversity, equity, and inclusion policies [1].

Cornell, who will step down as CEO on February 1 but remain as executive chairman, has faced criticism for not recognizing when it was time to exit. The company has appointed Michael Fiddelke, its former COO, as the next CEO. Fiddelke now faces the daunting task of reinvigorating a brand that had once captured the imagination of American shoppers with its “Tar-zhay” aesthetic. Cornell’s story is a cautionary tale for corporate leaders: even a successful tenure can reach a point where change is necessary to stay relevant [1].

Analysts have noted that the retail landscape continues to evolve rapidly. Walmart’s aggressive strategy in product design and customer experience has proven effective, while Target’s recent efforts to differentiate itself have not kept pace. As Fiddelke takes over, his ability to innovate and restore consumer confidence will be key to Target’s future success [1].

Source: [1] How Target let Walmart steal its rizz (https://fortune.com/2025/08/21/how-target-let-walmart-steal-its-rizz/)