Target CEO Resigns After 11 Years Sales Down & DEI Rollback
After 11 years at the helm Target CEO Brian Cornell steps down amid slumping sales and backlash over retrenching DEI initiatives Insider successor set for Feb 2026 .
Brian Cornell the Chief Executive Officer of Target has announced his resignation ending an 11 year tenure that reshaped the retail chain Once credited with turning the company into a stylish and digitally savvy competitor Cornell now departs as Target faces plummeting sales investor unease and a storm of criticism over its rollback of diversity equity and inclusion DEI initiatives The leadership shift marks a pivotal moment for the retailer which is navigating both cultural backlash and financial turbulence .
A Decade of Transformation—and Abrupt Reversal
Cornell became CEO in 2014 inheriting a brand struggling after a high profile data breach and weak sales Under his leadership Target remodeled its stores expanded private label brands and modernized e commerce operations These efforts earned praise for restoring Targets image as a fashionable and affordable alternative to retail giants like Amazon and Walmart .
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Yet the momentum unraveled in 2025 when the company began scaling back its DEI commitments The retrenchment seen as bowing to external political and shareholder pressures ignited backlash among employees advocacy groups and even Targets founding families who called the reversal a “betrayal” The decision triggered boycotts consumer protests and widespread reputational damage—problems that coincided with declining sales and eroding customer trust .
The Consequences Sales Stock and Store Traffic
Targets financial performance reflects the fallout The company reported three consecutive quarters of declining comparable sales including a 19 percent drop in one quarter alongside a staggering 21 percent slump in net income Foot traffic once a source of strength also diminished sharply .
The markets reacted swiftly Targets shares dropped between 6 percent and 10 percent following the announcement of Cornells resignation cementing its place among the worst performing stocks in the S&P 500 Analysts linked the decline not only to poor earnings but also to waning consumer confidence in the brand .
Economic factors have compounded Targets troubles Inflation new tariffs and a consumer shift away from discretionary spending particularly in apparel and home goods have squeezed profits Critics also argue that Target lost its trademark “Tarzhay” charm citing messy stores weaker assortments and uninspired merchandising .
Leadership Transition From Cornell to Fiddelke
To steer the company forward Target has appointed longtime Chief Operating Officer Michael Fiddelke as its new CEO effective February 1 2026 A 20 year veteran of the company Fiddelke began as an intern and steadily rose through the ranks His deep institutional knowledge has been praised by insiders though some investors question whether an internal successor is the bold change the company needs .
Cornell will remain with Target as Executive Chairman publicly endorsing Fiddelke as the right candidate to “lead our business back to growth” The choice followed a review of both internal and external candidates but the decision to elevate a trusted insider reflects the boards preference for continuity .
Facing Skepticism—and the Path Ahead
Wall Streets response to Fiddelkes promotion has been cautious if not outright skeptical Many investors had hoped for an external hire to shake up strategy and inject fresh thinking Instead analysts warn that promoting from within risks perpetuating the same groupthink that contributed to Targets recent missteps .
In response Fiddelke has outlined a three pronged revival plan
- 1 Merchandising Refresh Reestablish Targets role as a leader in stylish trend driven assortments .
- 2 Customer Experience Overhaul Enhance store cleanliness improve stock consistency and elevate the in store experience.
- 3 Technology Investment Bolster inventory management and e commerce fulfillment to compete more effectively in an omnichannel landscape .
These initiatives are designed to restore consumer confidence rebuild brand loyalty and sharpen Targets competitive edge .
Looking Forward
As of August 2025 Target stands at a crossroads The resignation of Brian Cornell and the appointment of Michael Fiddelke mark the beginning of a new chapter for the retailer However the company faces enormous challenges economic headwinds cultural backlash from its DEI retreat declining consumer trust and mounting pressure from investors .
Targets future success will depend on whether Fiddelke can reenergize the brands identity repair fractured consumer relationships and deliver a data driven strategy that sets the retailer apart in a crowded market The months leading up to his official takeover will be critical in determining whether Target can regain its once vaunted reputation—or risk sliding further into decline .