Target CEO Brian Cornell Steps Down Amid Slumping Sales and DEI Backlash

Brian Cornell, CEO of Target, will be stepping down after an 11-year tenure marked by both revitalization and recent challenges. Cornell, who revitalized Target by remodeling stores and strengthening the company's online presence, has been key in positioning the retailer against giants like Amazon. However, despite past achievements, Target is currently struggling with declining sales and a customer backlash following its retreat on diversity, equity, and inclusion (DEI) initiatives.

Cornell will be succeeded by Michael Fiddelke, Target's current Chief Operating Officer, on February 1, 2026. Fiddelke, a company veteran with 20 years of experience, was chosen as his successor. While some analysts had anticipated an outside hire to bring fresh perspectives, the board unanimously endorsed Fiddelke due to his profound understanding of Target's operations and enterprise insight.

Cornell took charge in 2014, earning acclaim for leading Target through a successful transformation. Under his leadership, the company flourished—especially during the pandemic—by emphasizing essentials, home goods, and leveraging its digital capabilities. However, post-pandemic shifts and growing competitive pressures have dampened Target's momentum. The company now faces falling sales, exacerbated by its high reliance on discretionary items, compared to essentials stocked by competitors like Walmart.

Target's recent decision to scale back its DEI initiatives created significant backlash. The moves led to customer protests, particularly from groups that had viewed Target as a progressive leader. This dissatisfaction has reportedly impacted sales, with some customers boycotting in response to the company's shift away from its previously expanded diversity and inclusion policies.

In light of these challenges, Fiddelke, while addressing stakeholders, emphasized the need for re-establishing Target's appeal through trendier product offerings and more engaging customer experiences. His strategic focus involves navigating tariffs prudently and leveraging technology to enhance operational efficiency. The aim is to mitigate the effects of recent tariffs and better position Target against competitors.

The transition comes amid a competitive retail environment where Target has lost market share to players like Walmart. Key market advantages, such as Target's trendy yet affordable merchandising, have waned, contributing to stagnant sales performance. Despite Target's innovative e-commerce integration and same-day delivery capabilities, fiscal realities have presented difficulties.

Even as Target remains a significant retail presence with nearly 2,000 stores across the United States, its sales have faltered. The company reported decreased sales and earnings, with successive quarters showing declines across various performance metrics. Analysts remain split on Target’s prospects, questioning whether incremental changes suffice or if comprehensive strategic overhauls are needed.

Fiddelke’s appointment aims to leverage his extensive Target experience to reverse these downtrends. His declaration to improve Target's merchandising authority and customer experience reflects the urgency of the task. Despite the strategic misfire of the DEI pullback and logistics mismanagement, Target's core strengths provide a foundation for recovery, poised to redefine the brand’s market position in evolving retail landscapes.

Cornell will transition to an executive chairman role, continuing to support Target’s growth trajectory while ensuring a smooth leadership passage. As Target contends with recovering its former market allure, its leadership shifts represent a commitment to adapt and thrive amidst retail industry volatility.