Target Corporation has announced a significant change in its executive ranks as CEO Brian Cornell is poised to step down after an 11-year period at the helm, a tenure that saw both notable successes and recent challenges. The transition, set for February 1, 2026, comes amid the retail giant's third consecutive quarter of falling sales and a significant stock decline, which saw shares drop 10 percent in premarket trading on Wednesday.
Cornell, who took control of Target in 2014, was initially lauded for revitalizing the brand with store remodels and expanding online capabilities to compete with industry giant Amazon. His efforts were recognized with accolades such as CNN Business’ CEO of the Year award in 2019. Under his leadership, Target achieved its strongest results in a decade during 2018, and particularly thrived during the pandemic when consumer spending on home goods and essentials surged.
However, Target's fortunes began to wane in 2022 as the company grappled with excess inventory issues and inflation that pressured consumer spending. As shoppers shifted their focus away from discretionary items, which make up more than half of Target's merchandise, the retailer found itself vulnerable to intensified competition from Walmart, Amazon, and Costco.
The outgoing CEO will transition to the role of executive chairman following the leadership change. During a Wednesday analyst call, Cornell praised his successor, Michael Fiddelke, Target’s current chief operating officer and a two-decade veteran of the company, as the "right candidate to lead our business back to growth" after a thorough evaluation of both internal and external candidates.
Target's challenges deepened in 2023 when conservative activists targeted the company’s LGBTQ-themed Pride Month merchandise. The backlash, which included threats against employees over so-called transgender-friendly bathing suits, led to the removal of these products from stores. Misinformation campaigns exacerbated the situation, with social media posts falsely claiming the swimwear targeted children, though it was intended for adults. This controversy resulted in sales drops and lawsuits from Republican-aligned legal organizations.
The company's diversity and inclusion (DEI) efforts came under fire as well, culminating in the termination of some DEI programs earlier this year—a move that drew criticism from supporters of such policies. Target's customer base, which tends to be more progressive than that of other major retailers, felt the impact of these changes more acutely.
As Target navigates current economic pressures, including tariffs and a consumer spending slowdown, the new CEO Fiddelke has indicated that price increases would be a last resort. The company has adjusted its merchandise selection to minimize tariff impacts, but analysts remain divided on Target’s recovery prospects.
