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Target CEO Brian Cornell is stepping down from his longtime position amid declining sales and the fallout from its DEI rollback.
According to CNN, Cornell, who served as the CEO of Target for 11 years, will transition to executive chairman beginning on February 1, 2026. He will be succeeded by Target's current chief operating officer, Michael Fiddelke, who was chosen from a "strong list of external and internal candidates," according to Cornell.
“He is the right candidate to lead our business back to growth,” Cornell said Wednesday (August 20) on a call with analysts.
The leadership change comes as Target reported its third consecutive quarter of falling sales this week. Target’s stock is one of the worst performers in the S&P 500 this year.
Earlier this year, Target ended several DEI initiatives, sparking backlash from supporters and internal stakeholders. Nationwide boycotts encouraged Black consumers to avoid shopping at the retailer, reportedly leading to a dip in in-store sales. Cornell reportedly met with Rev. Al Sharpton amid boycotts against the retailer and a decrease in foot traffic spurred by its DEI rollback.
“You can’t have an election come and all of a sudden, change your old positions,” Sharpton previously said. “If an election determines your commitment to fairness then fine, you have a right to withdraw from us, but then we have a right to withdraw from you.”
Neil Saunders, an analyst at GlobalData Retail, said Target's new leadership "does not necessarily remedy the problems of entrenched groupthink."
“Target, which used to be very attuned to consumer demand, has lost its grip on delivering for the American shopper," Saunders said.
During Wednesday's call with analysts, Fiddelke admitted that the company "must improve" and outlined plans to refresh merchandise offerings, enhance store appeal, and invest in technology, including a new initiative called “Fun 101” to spotlight trend-driven products.
Several analysts remain skeptical.
“Target is falling behind peers and has tougher challenges,” Bank of America analyst Robert Ohmes said. “Target’s long-term outlook is deteriorating.”
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