Target Store Front with Shopping Carts – Retail News Update

Target CEO Brian Cornell to Step Down Amid Slumping Sales and DEI Backlash

New York — Target CEO Brian Cornell is stepping down after 11 years at the helm, as the retail giant faces declining sales and criticism over its rollback of diversity, equity, and inclusion (DEI) programs.

Cornell’s departure was widely anticipated. Industry analysts suggested that an external leader might help turn the company around, but Target has chosen an internal successor: Michael Fiddelke, the current Chief Operating Officer, will take over as CEO on February 1, 2026. Fiddelke has been with Target for 20 years, starting as an intern, and was selected from a competitive list of internal and external candidates.

Cornell will remain as executive chairman. Since taking the role in 2014, he helped modernize Target stores and expand the company’s online presence to better compete with Amazon.

Sales Struggles and Market Pressure

Target has faced a prolonged slump, struggling with decreased demand for home goods and clothing. Competition from Walmart, Amazon, and Costco has intensified. The company reported its third consecutive quarterly sales decline on Wednesday, causing shares to drop 10% in premarket trading. Target’s stock is one of the worst-performing in the S&P 500 this year.

Some analysts expressed concern about Fiddelke’s appointment, noting that choosing an insider may not resolve the company’s challenges. “Target, which used to be very attuned to consumer demand, has lost its grip on delivering for the American shopper,” said Neil Saunders, retail analyst at GlobalData.

DEI Rollback and Customer Backlash

Target’s decision earlier this year to scale back some DEI programs drew significant criticism. Customers and even the daughters of a Target co-founder called the move “a betrayal.” Target acknowledged that the change negatively affected sales. While other companies have reduced DEI initiatives, Target faced heightened scrutiny due to its strong commitment to diversity and inclusion and its progressive customer base.

Economic Challenges and Tariffs

Target imports about half of its merchandise—higher than competitors like Walmart—making it more vulnerable to tariffs. Combined with a consumer shift toward essentials, these factors have further pressured sales. Target stocks more discretionary merchandise than many competitors, which has slowed amid rising prices and inflation.

Fiddelke’s Strategy for Growth

Fiddelke emphasized that Target must improve its performance. He plans to enhance store experiences, invest in technology, and introduce trend-focused products through initiatives such as “Fun 101,” aimed at electronics and home goods. The company aims to manage tariff pressures without heavily raising prices.

Analysts remain cautious about Target’s recovery. “Target’s long-term outlook is deteriorating. The company is falling behind peers and faces significant challenges,” said Bank of America analyst Robert Ohmes.