Target CEO Stepping Down: Where Did It All Go Wrong And Can Michael Fiddelke Save the Brand?

Target has announced that Chief Executive Officer Brian Cornell will step down from his role in February 2026 after more than a decade at the helm. Cornell, who has led the US retailer since 2014, will transition to the position of executive chairman.

The company confirmed that Michael Fiddelke, currently Target's Chief Operating Officer, has been appointed as the next CEO. The leadership change comes at a time when the company is battling slumping sales, shareholder pressure and public backlash linked to its retreat from Diversity, Equity, and Inclusion (DEI) policies.

Target's Struggles With Sales Performance

Target has faced mounting financial difficulties over the past year. In its second quarter of 2025, comparable sales dropped 1.9% from a year earlier, driven by a 3.2% decline at its stores. While digital sales rose 4.3%, gross profit margins slipped to 29% compared with 30% in the same quarter last year.

'While we're not pleased with the results, we're encouraged by the improved performance as we go into the third quarter of the year,' Target chair and CEO Brian Cornell told Yahoo Finance's Brian Sozzi.

Analysts noted that the downturn reflected both weaker consumer demand and intensifying competition in the retail sector.

Following the announcement of Cornell's departure, Target's stock fell sharply, dropping 11% as reported by The Economic Times. The decline highlighted investor concern about the company's ability to regain momentum in a challenging retail landscape dominated by discount chains and online competitors.

Backlash Over DEI Rollback

One of the most contentious issues during Cornell's final years as CEO has been the company's retreat from its DEI initiatives. The rollback, which included scaling back certain programmes and reducing DEI commitments, triggered widespread criticism.

Consumer boycotts, particularly among Black communities, were reported following the policy changes. Members of the founding Dayton family also publicly criticised the shift, warning that Target risked losing trust among loyal shoppers. The DEI controversy has significantly impacted Target's reputation and falling customer confidence, compounding the retailer's financial woes.

Brian Cornell's Legacy at Target

Brian Cornell became CEO in 2014 and was credited with revitalising Target during his early tenure. Under his leadership, the company invested heavily in store remodels, developed a strong digital infrastructure and launched popular in-house brands that helped boost market share.

By 2021, Target had surpassed £74 billion ($100 billion) in annual revenue and was regarded as one of the strongest names in American retail. However, recent setbacks have overshadowed those achievements, with critics pointing to declining sales, brand controversies and shifting consumer loyalty.

Cornell will remain at the company as executive chairman, supporting the transition process while stepping back from day-to-day leadership.

Michael Fiddelke: Target's Next CEO

Michael Fiddelke, a 20-year veteran of the company, has been chosen to succeed Cornell as CEO. Currently serving as Chief Operating Officer, Fiddelke has held senior roles across finance, merchandising, operations and human resources, giving him extensive knowledge of the retailer's operations.

The board's decision to select an internal candidate reflects its desire for continuity during a turbulent period. Fiddelke has already outlined priorities that include restoring Target's merchandising appeal, improving in-store customer experience, and accelerating investment in digital and technology platforms to strengthen competitiveness.

Challenges Facing the New Leadership

As Fiddelke prepares to take the reins in February 2026, he inherits a company at a crossroads. Target must address declining revenues, win back consumer trust lost during the DEI controversy and reassure investors unsettled by falling stock prices.

In addition, the retailer faces intensifying competition in an era of aggressive price wars, as rivals push to capture cost-conscious shoppers. For Fiddelke, the task will be to restore Target's brand identity while delivering the financial performance expected by Wall Street and the company's board.