Target selects Michael Fiddelke as next CEO

Target's long serving CEO will step down after 11 years as the retailer grapples with a sales slump and a backlash over its DEI retreat.

Target CEO Steps Down as Sales Slump Deepens

New York, Target said CEO Brian Cornell will step down on February 1, 2026, and will be replaced by Michael Fiddelke, the company’s current chief operating officer. Cornell led a store remodeling push and boosted online growth, but the retailer has posted a third straight quarterly sales decline. The stock fell about 8 percent in premarket trading, making Target one of the weakest performers in the S&P 500 this year.

The leadership change comes as Target faces scrutiny over its decision to roll back some DEI programs, which critics say damaged trust with shoppers. Tariffs and a softer consumer environment have added pressure, especially since about half of Target’s merchandise is discretionary. The retailer imports roughly half of its goods, which compounds price pressures when tariffs linger and competition from Walmart, Amazon and Costco remains intense.

Internal promotion suggests Target prefers continuity to a bold strategic pivot. Keeping an insider in charge may reassure investors and employees, but it raises questions about whether the company has a clear plan to win back shoppers who have shifted to essentials.

Beyond leadership, Target must decide how much its brand identity hinges on DEI efforts versus price and convenience. The current market favors essentials, and the retailer will need to sharpen execution in pricing, promotions and inventory for both stores and online. Leadership changes in a pressured market often reveal more about a company’s strategy than a single leader.

Highlights

The road ahead will test how Target balances price, purpose and performance.