Target names new interim leadership as sales falter

Brian Cornell will be succeeded by Target's chief operating officer next year as the retailer confronts sales declines and a boycott tied to DEI policy changes.

Target CEO steps down as company faces weak sales and customer boycott

Target will replace its chief executive next year as the retailer confronts ongoing sales weakness and a boycott tied to its decision to scale back diversity, equity and inclusion initiatives. The company said its chief operating officer will assume the role, marking a leadership transition after a period of slow growth in a highly competitive retail landscape.

In the latest results, Target reported a 21 percent drop in net income for the second quarter and a decline in comparable sales of 1.9 percent. Management attributed part of the pressure to softer consumer spending amid tariff concerns and economic uncertainty, and officials acknowledged that the boycott activity contributed to weaker demand. The firm has faced political and public backlash over DEI policy changes, including reductions to Pride merchandise and shifts in how DEI programs are implemented. These moves have coincided with a broader environment of consumer caution and intensified scrutiny of corporate policy choices.

The leadership shakeup arrives as retailers navigate a climate where culture and commerce collide. The decision to trim DEI initiatives is part of a national debate about the role of corporate policy in day to day shopping. For Target, the risk is that the move alienates loyal customers while failing to win over new buyers, creating a reputational not just a financial drag.

The broader retail market remains volatile, with inflation, tariffs and stiff competition squeezing margins. A successful turnaround will require clear strategic choices, reliable execution and a plan to rebuild trust with both shoppers and investors. How Target aligns its brand narrative with steady operations will shape its performance long after this leadership change.

Highlights

The next steps will reveal how much trust remains in a big brand navigating social policy and price pressure.