Target appoints insider to lead amid sales slump

Target CEO Brian Cornell steps down after 11 years as the retailer faces declining sales and backlash over its DEI retreat.

Target appoints insider to lead as sales slump persists

New York — Target says CEO Brian Cornell will step down on February 1, 2026, after 11 years. Michael Fiddelke, Target’s current chief operating officer, will replace him and Cornell will become executive chairman. Fiddelke started at Target as an intern and has worked there for 20 years. The move follows a period of strategy changes including store remodels and a push to strengthen online sales.

Target reported a third straight quarterly sales decline. Shares fell about 10 percent in premarket trading. Analysts say the company faces pressure from competition with Walmart, Amazon, and Costco, plus tariff-related costs. The retailer relies heavily on discretionary items like home goods and fashion, which have cooled as shoppers shift to essentials. The DEI policy rollback earlier this year also drew online protests and criticism from supporters of diversity programs.

The board’s choice to promote from within may signal stability, but it also raises questions about whether fresh eyes are needed to reset Target’s strategy and culture. Critics warn that an internal appointment can entrench existing dynamics and overlook deeper problems in how the retailer reads its customers.

Beyond leadership, the ongoing mix of tariffs, inflation, and a shift in shopper priorities creates a multi-front challenge. A credible turnaround will demand more than a new title; it requires a clear, consumer-focused plan with measurable milestones and a resilient supply chain strategy. Investors will be watching how Target translates leadership changes into real improvements in value for shoppers and stock performance.

Highlights

The next steps will reveal whether Target can rebuild trust and grow again.