Target CEO Brian Cornell will step down in 2026 after 11 years, as the retailer struggles with falling sales, DEI backlash and stiff competition. (Photo: Canva modified X images)
Target CEO Brian Cornell is stepping down after leading the company for over a decade, as the retailer faces falling sales, increasing competition and controversy over its diversity programs, CNN reported on Wednesday. His exit, which some say was long expected, marks a pivotal moment for the company.
Cornell, who took charge back in 2014, will officially step down on February 1 next year. He will be succeeded by Michael Fiddelke, the company’s current chief operating officer (COO) and a 20-year Target veteran.
Cornell has been credited with revitalising the company during his tenure, pushing Target’s store remodels and boosting online operations to compete with major players like Amazon. However, the retailer has suffered setback in recent years, with sales recording a significant drop for the third consecutive quarter.
On Wednesday, Target’s shares dropped eight percent in premarket trading.
Target’s image suffered a major blow earlier this year, when it rolled back some of its diversity, equity, and inclusion (DEI) programs, a decision that drew sharp criticism from longtime supporters and customers.
Anne and Lucy Dayton, daughters of one of Target’s co-founders, called the move “a betrayal,” with the retailer admitting that the retreat from DEI programs did hurt its sales.
Unlike some competitors, Target had the DEI fabric woven deeply into its brand identity, which analysts believe explains the stronger backlash from its more progressive customer base.
Target, known for its trendy, non-essential merchandise, the retailer has struggled as customers tightened budgets and shifted spending to essentials like groceries and household basics.
Over half of Target’s sales come from discretionary items as compared to Walmart, where around 50% of business comes from food. Additionally, the company imports about 50% of its merchandise, making it more vulnerable to tariffs. Walmart, in comparison, imports closer to 33%.
Bank of America analyst Robert Ohmes told the US media network that this leaves Target needing to raise prices “at almost double the rate of Walmart” to offset tariffs.
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