Target CEO Brian Cornell Steps Down Amid Sales Slump and Controversy

New York, NY — Target CEO Brian Cornell is stepping down after 11 years as the retailer faces declining sales and backlash over its diversity, equity, and inclusion (DEI) policies. Cornell’s exit was anticipated, with some analysts suggesting a need for fresh leadership. His replacement will be Michael Fiddelke, the current chief operating officer, effective February 1, 2026.

Cornell joined Target in 2014 and implemented strategies to remodel stores and enhance online sales to combat competitors like Amazon. However, the company has struggled in recent years, particularly with decreased sales in home goods and clothing.

On Wednesday, Target announced that sales had dropped for the third consecutive quarter, leading to a 10% decrease in premarket trading. This puts Target among the weakest performers in the S&P 500 this year.

The past three years have been particularly challenging for Target, with 2025 marked by a controversial rollback of DEI programs, provoking strong reactions from supporters, including the co-founders’ daughters, Anne and Lucy Dayton. They labeled the company’s actions as “a betrayal.”

Analysts assert that Target’s retreat on DEI policies has intensified the impact on its sales, given that the retailer’s business core is closely tied to those initiatives. Furthermore, rising tariffs and a consumer shift towards essential purchases have further strained the company.

More than half of Target’s merchandise is considered discretionary, which has seen declines as consumers turn their spending towards essentials like groceries. In contrast, about half of Walmart‘s sales come from food. Additionally, Target imports around 50% of its merchandise which requires it to raise prices at a higher rate than Walmart to cope with tariffs, according to Bank of America analyst Robert Ohmes.

As Target navigates these significant challenges, Street analysts remain divided. Some believe the company needs sweeping changes, while others think its issues may be addressed through strategic corrections. “Target’s long-term outlook is deteriorating,” said Ohmes, stressing the growing gap between Target and its peers.

Cornell’s tenure began positively, with the retailer experiencing strong growth during the pandemic in 2020 and 2021. However, misjudgments of inventory needs post-pandemic led to significant unsold stock, exacerbated by mounting inflation that affects consumer behavior.

Target’s recent struggles represent a stark contrast to the company’s previous success under Cornell. As the company searches for new leadership to turn around its fortunes, Cornell will transition to the role of executive chairman, a move seen by some as insufficient to confront the company’s entrenched issues.