*Target’s CEO Brian Cornell will step down on February 1, 2026, after 11 years, with Chief Operating Officer Michael Fiddelke, a 20-year company veteran, taking the helm.
“Fiddelke was chosen from a strong list of external and internal candidates,” Cornell said, calling him the “right candidate to lead our business back to growth.” Cornell will remain as executive chairman, according to CNN.
The leadership change comes as Target faces a third consecutive quarter of declining sales, with shares dropping 10% in premarket trading. Target’s stock ranks among the weakest performers in the S&P 500 for 2025, highlighting investor uncertainty about the company’s direction. Analyst Neil Saunders criticized the choice of an internal successor, noting that “an internal appointment does not necessarily remedy the problems of entrenched groupthink and the inward-looking mindset that have plagued Target for years.”
Target’s challenges include a shift in consumer preferences away from discretionary merchandise, such as home goods and clothing, toward essentials. “Target’s long-term outlook is deteriorating,” said Bank of America analyst Robert Ohmes, noting fiercer competition from Walmart, Amazon, and Costco. Tariffs also hit Target harder, with 50% of its merchandise imported compared to Walmart’s 33%.
The retailer faced backlash for scaling back DEI programs in 2025, alienating its progressive customer base. “People re-evaluated and started driving extra miles to go to other places,” said Rev. Jamal Bryant, who led a boycott, calling the move “a stark betrayal.”
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As reported earlier, the 40-day “FAST” boycott, held from March 3 to April 19 during Lent, significantly affected Target’s performance. It was led by Black activist groups and clergy such as Bryant, who denounced the company’s retreat from diversity pledges.
According to Fortune, the retailer saw an average 6.2% decline in foot traffic over eight weeks, including a 5.7% drop during the week of March 17, based on Placer.ai data, while the boycott also led to reduced stock value and a cut in the CEO’s salary, underscoring its economic impact.
Target had pledged $2 billion to support Black-owned businesses by December 2025, but on January 24, the company announced it would drop both that commitment and its DEI programs.
“After the murder of George Floyd, they made a $2 billion commitment to invest in Black businesses,” Bryant said in an interview with Let It Be Known News. “That commitment was due in December 2025. When they pulled out of the DEI agreement in January, they also canceled that $2 billion commitment.”
Cornell’s tenure began with a strong turnaround, earning him CNN Business’ CEO of the Year title in 2019. “Target has earned a place in the retail winners’ circle by investing in our business and staying true to our guests and our purpose,” he said then. However, missteps like overstocking inventory in 2022 and backlash over LGBTQ-themed merchandise in 2023 hurt sales.
Fiddelke acknowledged the need for change, stating, “Target must improve” and is “not realizing our full potential right now.”
