Target CEO Brian Cornell steps down in February 2026 after 11 years, as the retailer faces slumping sales, DEI backlash, tariff pressures, and intensifying competition from Walmart and Amazon. Michael Fiddelke, the current CEO, will take over leadership.
Introduction: A Turning Point for Target
Target is undergoing one of the biggest leadership transitions in its modern history. Target CEO Brian Cornell steps down on February 1, 2026, after more than a decade at the helm. Cornell will be succeeded by Michael Fiddelke, Target’s chief operating officer, who has spent 20 years at the company.
The change comes at a challenging time. Target has reported slumping sales for three consecutive quarters, suffered a 10% stock drop in premarket trading, and faced growing criticism over its retreat from diversity, equity, and inclusion (DEI) programs. With Cornell staying on as executive chairman, Fiddelke now inherits the difficult task of reviving a struggling retail giant.
Why Is Target CEO Brian Cornell Steps Down Stepping Down?
Target CEO Brian Cornell Steps Down , who became CEO in 2014, is credited with revitalizing Target during his early years. He led successful store remodels, built out Target’s online shopping capabilities, and turned the company into a strong competitor against Amazon, Walmart, and Costco.
However, Target has faltered in recent years due to:
- Declining discretionary spending: Customers are buying fewer home goods, clothing, and electronics.
- Tariff impacts: Target imports nearly half of its merchandise, compared to Walmart’s 33%, making it more exposed to rising costs.
- DEI backlash: Rolling back diversity and inclusion policies alienated loyal progressive shoppers, while earlier controversies over LGBTQ-themed products created boycotts from conservative groups.
- Stock struggles: Target’s (TGT) shares are among the worst performers in the S&P 500 in 2025.
For many investors, a leadership change was inevitable.
Michael Fiddelke: After Target CEO Brian Cornell Steps Down, Who Is Target’s Next CEO
Michael Fiddelke has been chosen as Cornell’s successor. A longtime Target executive who began as an intern, Fiddelke has overseen operations, supply chain efficiency, and merchandising strategies.
On a call with analysts, he admitted Target CEO Brian Cornell Steps Down is “not realizing our full potential right now” and promised to focus on:
- Trendier merchandise through initiatives like “Fun 101.”
- More appealing in-store experiences to bring customers back.
- Investments in technology to compete in e-commerce.
- Careful navigation of tariffs, with price hikes as a last resort.
Some analysts welcomed continuity in leadership, but others criticized the decision as “an internal appointment that doesn’t solve entrenched groupthink,” suggesting Target needed an outsider to reset its strategy.
The Role of DEI in Target’s Troubles
Target CEO Brian Cornell Steps Down Target’s decision to scale back DEI initiatives in 2025 created a firestorm. Critics, including descendants of the company’s founders, called it a “betrayal.” Supporters of diversity programs accused Target of abandoning its progressive values, while conservative backlash over LGBTQ merchandise had already hurt sales in 2023–2024.
Unlike rivals, Target has always had a more progressive customer base, making its DEI retreat particularly damaging to brand loyalty.
Competition and Market Pressures
Target is especially vulnerable compared to competitors:
- Walmart and Costco attract customers with cheaper groceries and essentials.
- Amazon dominates online shopping, where Target once gained ground but is now lagging.
- Target’s 50% discretionary product mix (clothing, home décor, electronics) makes it more exposed to consumer cutbacks than Walmart, which relies on food for 50% of sales.
Target’s Rocky Performance Under Cornell
Cornell’s tenure has been marked by highs and lows:
- 2018–2019: Target delivered its best results in a decade, earning Cornell the title of CNN Business CEO of the Year.
- 2020–2021: The pandemic drove record sales of home goods and essentials.
- 2022 onwards: Overstocked inventories, inflation, social media boycotts, and tariff hikes eroded performance.
Now, Fiddelke must repair both financial performance and consumer trust.
What’s Next for Target?
The constitutional moment for Target lies in whether its new leadership can reset its brand and strategy. Analysts remain divided:
- Optimists believe Fiddelke’s deep knowledge of Target will help stabilize the company.
- Skeptics argue Target needs drastic transformation to avoid falling further behind Walmart, Amazon, and Costco.
FAQs
Q1: Why is Target CEO Brian Cornell steps down?
He is leaving after 11 years, as Target struggles with falling sales, DEI backlash, and investor pressure.
Q2: Who is replacing Brian Cornell as Target CEO?
Michael Fiddelke, Target’s current COO, will take over on February 1, 2026.
Q3: Why is Target’s performance struggling?
Customers are spending less on discretionary items, tariffs have raised costs, and DEI controversies have hurt brand loyalty.
Q4: How has Target’s stock performed in 2025?
Target’s shares are down significantly, ranking among the worst-performing S&P 500 companies this year.
Q5: What changes can customers expect under the new CEO?
Fiddelke plans trendier merchandise, enhanced in-store experiences, and greater investment in technology.