Brian Cornell, the Chief Executive Officer of Target, announced his decision to step down in February 2026 after an 11-year tenure marked by early successes and recent challenges. His departure comes as the retail giant struggles with sliding sales, intensifying competition, and a controversial retreat from diversity, equity, and inclusion (DEI) initiatives. Michael Fiddelke, Target’s current Chief Operating Officer with two decades of experience at the company, has been named as his successor.
Key Highlights of the Transition and Corporate Context
Cornell will transition from CEO to executive chair of Target’s board of directors starting February 1, 2026, ensuring a continuing advisory role during leadership change.
Fiddelke, who began his career at Target as an intern and rose through the ranks to COO, will carry the responsibility of reversing sales declines and revitalizing the company’s brand and growth strategies.
The leadership announcement coincided with Target’s release of second-quarter 2025 financial results, which revealed a 0.9% decline in comparable sales and a 21% drop in net income compared to the previous year.
Following the CEO transition announcement, Target’s stock dropped sharply—more than 10.5% in premarket trading—reflecting market concerns about the company’s current challenges.
Cornell’s Legacy: Building a $100 Billion Retail Powerhouse
Joining Target in 2014 as the first externally hired CEO since founder George Dayton, Cornell was credited with transforming Target from a struggling retailer into a stylish, digitally savvy powerhouse.
He spearheaded store remodels, enhanced private label brands, and expanded same-day delivery services including the acquisition of Shipt, positioning Target as a hybrid physical and online retailer.
Under his leadership, Target grew its revenue by $34 billion and solidified its reputation for local community engagement and curated merchandise.
Yet, the retailer’s recent retreat from DEI initiatives ignited consumer boycotts, public criticism from founders’ families, and arguably contributed to weakened consumer loyalty and sales erosion.
Challenges Facing Target in a Rapidly Evolving Retail Landscape
Target has been losing ground to competitors such as Walmart, Amazon, and cost-conscious retailers like TJ Maxx, struggling to balance fashion appeal with affordability.
The pandemic initially boosted sales of home and comfort goods but waning demand in 2023 and inflation pressures created excess inventory and margin challenges.
Analysts lament Target’s seeming loss of connection to evolving consumer preferences and warn that deep-rooted internal mindsets have hindered adaptation.
New CEO Fiddelke’s Mandate and Vision
Fiddelke has outlined a three-point plan centered on restoring merchandising leadership, improving store conditions and inventory availability, and investing heavily in technology and supply chain innovation.
He emphasizes bringing a “fresh eyes” approach, challenging existing practices to unlock new growth and operational efficiency.
Confidence from Target’s board is strong, with Chair Christine Leahy citing Fiddelke’s “unmatched enterprise insight” and trust within the team as key assets for transformation.
The company also aims to accelerate decision-making and agility through newly formed divisions under Fiddelke’s leadership.
What Industry Experts Are Saying
Some analysts expressed disappointment that Target chose an insider over an external candidate, fearing it may not sufficiently shake up entrenched corporate culture.
Neil Saunders of GlobalData Retail described the internal appointment as a “somewhat distinct perspective” but cautioned about longstanding groupthink.
Others highlight that Fiddelke’s deep experience, intimate knowledge of the brand, and recent successes in supply chain and digital growth position him well for the task ahead.
Conclusion
Brian Cornell’s departure closes a chapter of notable growth and brand reinvention for Target, but the company now faces critical headwinds. Michael Fiddelke steps in at a pivotal moment, tasked with reinvigorating a faltering retail icon. How effectively he navigates evolving consumer demands, competitive pressures, and internal reforms will shape Target’s ability to reclaim its once-bold “Tarzhay” identity and sustain long-term success.
Sources: Forbes, CNN, CNBC, Associated Press, Retail Dive
