Target CEO Brian Cornell will resign following a challenging year marked by declining sales and the DEI scandal
Target names insider Michael Fiddelke as its next CEO as the company struggles with declining sales and disgruntled customers.
Brian Cornell, Target’s CEO for 11 years, is leaving the firm as it deals with dwindling sales and growing criticism for breaking its DEI pledges. Target’s chief operating officer, Michael Fiddelke, a 20-year veteran who started as an intern, will assume the role on February 1, 2026.
When Cornell took over in 2014, he helped change Target’s physical locations and online presence. He will continue to serve as executive chairman. However, the last few years have not been good.
GlobalData Retail’s Neil Saunders stated, “Target, which was once very sensitive to customer demand, has lost its grip on delivering for the American shopper.” “An internal appointment does not necessarily remedy the problems of entrenched groupthink,” he said, criticizing the selection.
For three consecutive quarters, sales have decreased. In premarket trade on Wednesday, shares fell 10%. On the S&P 500, Target’s stock is currently one of the worst performers of the year.
Target’s reduction of diversity and inclusion programs earlier in 2025 drew criticism from consumers and even the Dayton family, whose members were involved in the founding of the company. “A betrayal,” Lucy Dayton and Anne remarked.
Target has also suffered greatly from tariffs and consumer backlash. Price rises are larger than those of competitors like Walmart because of the company’s significant reliance on imports and discretionary goods.
“Target is falling behind peers and has tougher challenges,” cautioned Robert Ohmes of Bank of America. Inflation, overstock, and divisive disputes have plagued the corporation since its pandemic boom, suggesting that its heyday under Cornell may be coming to an end.
