New York — Target CEO Brian Cornell will step down in early 2026 after more than a decade leading the $107 billion retailer. His departure comes as the company struggles with falling sales, consumer backlash, and pressure from tariffs.
Cornell, who revitalized Target in his early years, will transition to executive chairman on February 1, 2026. The company named Michael Fiddelke, its current chief operating officer, as his successor. Fiddelke, who began as an intern 20 years ago, has risen steadily through the company’s ranks.
“Michael is the right candidate to lead our business back to growth,” Cornell told analysts. He emphasized Fiddelke’s deep knowledge of Target and commitment to driving improvement.
Sales Slump and Investor Concerns
Target reported its third straight quarterly sales decline this week. Shares fell 10% in premarket trading, making it one of the worst performers in the S&P 500 this year. Analysts argued the board should have considered an outsider to reset strategy.
“This internal appointment does not necessarily remedy entrenched groupthink,” said Neil Saunders, analyst at GlobalData Retail. “Target, which used to be very attuned to consumer demand, has lost its grip on delivering for the American shopper.”
Embed from Getty ImagesDEI Retreat and Consumer Backlash
Target has faced turmoil in recent years. The company rolled back several diversity, equity, and inclusion (DEI) programs in 2025, sparking protests and boycotts. Critics, including Anne and Lucy Dayton, daughters of a co-founder, labeled the move “a betrayal.”
The decision hurt sales, especially among progressive-leaning customers. “People started driving extra miles to shop elsewhere,” said Rev. Jamal Bryant, who organized a boycott.
Competitive Pressures
Beyond the DEI controversy, Target has struggled with broader retail headwinds. More than half its merchandise is discretionary, leaving it vulnerable as shoppers focus on essentials. By contrast, groceries make up half of Walmart’s sales.
Tariffs have also hit hard. Target imports about half of its products, nearly double Walmart’s share. Analysts say the company must raise prices at a faster pace, straining its competitiveness.
Looking Ahead
Despite the challenges, Cornell pointed to “encouraging signs” such as stronger traffic and improved trends heading into the back-to-school and holiday seasons.
“With Michael’s leadership, Target can return to sustainable growth,” Cornell said.
Target operates nearly 2,000 stores nationwide and remains one of the largest U.S. retailers. The leadership shift marks the start of a new chapter for the company as it works to regain momentum.
