Target CEO Brian Cornell Steps Down Amid Retail Struggles

Target CEO Brian Cornell is stepping down after 11 years, amid struggles at the retailer. Cornell helped engineer a turnaround but the company has faced tumbling sales, tariff pressure, and a consumer slowdown. Incoming CEO Michael Fiddelke will have a tough task ahead as Target has fallen behind rivals like Walmart, Amazon, and Costco.

Target CEO Brian Cornell is stepping down after 11 years, amid struggles at the retailer. Cornell helped engineer a turnaround but the company has faced tumbling sales, tariff pressure, and a consumer slowdown. Incoming CEO Michael Fiddelke will have a tough task ahead as Target has fallen behind rivals like Walmart, Amazon, and Costco.

Cornell's departure was widely anticipated, given the retailer's recent struggles. He will be replaced by Michael Fiddelke, the company's current chief operating officer, on February 1, 2026. Fiddelke started as an intern at Target and has been with the company for 20 years [1].

Target has been grappling with a series of challenges. The company's sales have been declining for the past three quarters, with shares falling 10% in premarket trading. The retailer has also faced criticism for its retreat on diversity, equity, and inclusion (DEI) policies [1].

Fiddelke, who will also join the board of directors, has been credited with building many of Target's core strengths. He has overseen efforts that enabled exponential growth across the business, including investments in stores, supply chain, digital capabilities, and team [2].

Target's latest fiscal quarter saw sales of $25.2 billion, down just under 1% from a year ago. Online sales grew a little over 4%, while in-store sales dropped nearly 2%. Profit for the quarter came in at $1.3 billion, down about 19% from last year [2].

The company expects a low-single digit decline in sales for fiscal 2025, down from its previous forecast of net sales growth of about 1%. Adjusted earnings per share are expected to be approximately $7 to $9 for fiscal 2025, down from its prior expectation of $8.80 to $9.80 [2].

Fiddelke's tenure will be crucial in bringing Target back to growth. He has outlined plans to bring trendier merchandise to Target, make its stores more appealing to visit, and invest in technology. The company is also navigating tariffs and a consumer slowdown, which have put pressure on sales [1].

Analysts are mixed on whether Target's issues are easily solvable or if drastic changes are necessary to revive the business. "Target's long-term outlook is deteriorating," said Bank of America analyst Robert Ohmes [1].

Fiddelke will face significant challenges in his new role, but his experience and understanding of the company could provide a strong foundation for growth.

References:
[1] https://www.cnn.com/2025/08/20/business/target-stock-ceo-cornell
[2] https://nypost.com/2025/08/20/business/target-ceo-brian-cornell-steps-down-after-10-years-as-retailer-fights-to-reverse-sliding-sales/
[3] https://www.cnbc.com/2025/08/20/target-picks-michael-fiddelke-as-ceo-to-replace-brian-cornell.html