The retail giant Target is set for a major leadership change as CEO Brian Cornell announces his departure after more than a decade at the helm. The move comes at a pivotal moment for the company, which is grappling with slowing sales, customer backlash, and growing scrutiny over its corporate direction.

Cornell, who joined Target as CEO in 2014, will officially step down in 2026. Michael Fiddelke, the company’s current Chief Operating Officer, has been named his successor, signaling a transition as Target attempts to regain momentum in a turbulent market.

This announcement arrives amid a storm of internal and external pressures for the retail chain, which operates nearly 2,000 stores across the United States. Sales have been sluggish throughout 2025, with recent quarterly results showing a significant dip in revenue and profit. In addition, an ongoing customer boycott rooted in political and social concerns has added to the retailer’s woes.

Why is the Target CEO stepping down now?

The decision for Brian Cornell to exit his role is tied to a combination of poor financial performance and strategic missteps, particularly regarding the company’s handling of diversity, equity, and inclusion (DEI) policies. Target scaled back several DEI initiatives earlier this year after mounting criticism from conservative activists and political pressure aligned with the current U.S. administration.

This rollback triggered a wave of discontent among many customers, notably in Black and LGBTQ+ communities. In February, a national poll revealed a shift in shopping behavior, with many Americans deliberately avoiding brands seen as aligning with political agendas. Target found itself at the center of this cultural tug-of-war.

Compounding the controversy was a significant boycott campaign led by religious and civil rights leaders. One such campaign, known as the “Target Fast,” was organized by Reverend Jamal Bryant of New Birth Missionary Baptist Church in Georgia, drawing more than 250,000 pledges to avoid the retailer during the Lenten season.

Target’s Financial Performance in 2025: A Wake-Up Call

The leadership change follows a dismal performance report. In the second quarter of 2025, Target’s net income dropped by 21%, while comparable sales—an important retail metric combining both in-store and online results—fell by 1.9%. The retailer has now reported flat or declining comparable sales in eight of the last ten quarters.

Consumers, facing economic uncertainty, have curtailed discretionary spending. Rising tariffs and concerns over inflation have further dampened consumer confidence, making it even more difficult for retailers like Target to drive growth.

While Target previously leaned into inclusive branding and progressive merchandising strategies, its recent policy reversals created confusion and division among shoppers. The reduced visibility of Pride merchandise in 2024 was one early sign of shifting corporate culture, followed by broader DEI pullbacks that ultimately hurt brand loyalty.

What This Means for Target’s Future

Incoming CEO Michael Fiddelke faces the challenge of stabilizing both finances and public perception. His promotion signals an intent to retain internal continuity while attempting to steer the company back toward operational strength and customer trust.

Fiddelke, a longtime Target executive, has deep experience in finance and operations, but his ability to navigate the politically charged retail landscape will be closely watched. Investors and customers alike are eager to see whether Target can re-establish itself as a socially responsible yet commercially competitive brand.

For now, the company is working to reassure stakeholders that this leadership shift will drive renewed focus on innovation, customer experience, and long-term growth—even amid social and economic headwinds.

Target’s next chapter will hinge not only on its retail strategy but also on its ability to authentically connect with today’s more conscious consumer.

For your information:

Why did Target CEO Brian Cornell resign?
Brian Cornell is stepping down following a period of weak financial performance, public backlash over the company’s DEI policy changes, and increasing customer boycotts. His departure is seen as part of Target’s strategy to regain momentum.

Who is replacing Target CEO Brian Cornell?
Michael Fiddelke, currently the Chief Operating Officer at Target, will succeed Brian Cornell as CEO in 2026. Fiddelke has been with the company for years, primarily in finance and operations leadership roles.

How have DEI rollbacks impacted Target?
Target’s decision to scale back DEI initiatives led to widespread criticism and a significant boycott, especially from Black and LGBTQ+ communities. These changes negatively impacted the company’s brand image and contributed to falling sales.

What challenges is Target facing in 2025?
In 2025, Target has struggled with declining sales, falling net income, customer dissatisfaction, and economic pressures such as tariffs and inflation, all of which contributed to CEO Brian Cornell’s decision to step down.

What is Target’s plan under new leadership?
Target aims to rebuild consumer trust, refocus on inclusive retail practices, and drive long-term profitability. New CEO Michael Fiddelke is expected to prioritize operational stability and strategic clarity.