Minneapolis, MN – In a major leadership shift impacting a prominent American retailer, Target Corporation announced today that CEO Brian Cornell will step down from his role, effective February 1, 2026. Current Chief Operating Officer Michael Fiddelke has been unanimously elected by the board to succeed Cornell, who will transition to an executive chairman position. The news, a significant development in the retail sector, arrived alongside a challenging second-quarter earnings report, which saw Target’s stock plummet, reflecting deep investor concerns over declining sales and the ongoing fallout from the company’s diversity, equity, and inclusion (DEI) initiatives.
Brian Cornell’s Transformative Tenure and Mounting Headwinds
Brian Cornell, who took the helm in 2014, is widely credited with orchestrating a remarkable turnaround for Target. Under his leadership, the company expanded its revenue by an impressive $34 billion over 11 years, transforming it into a more than $100 billion enterprise. His strategic vision revitalized the brand through extensive store remodels, significant investments in supply chain and digital capabilities, and the expansion of its online business to compete with evolving delivery services. However, the last year has brought a cascade of challenges that have put immense pressure on the retail giant and its leadership.
Target has experienced a consistent slump in sales, reporting a decline for the third consecutive quarter. Net sales for the second quarter of 2025 fell by 0.9% year-over-year to $25.2 billion, following a more significant drop in the first quarter. This downturn is attributed to several factors, including broader reduced consumer spending on non-essential items like apparel and home goods, intensified competition from rivals such as Walmart, Amazon, and Costco, and ongoing cost pressures from tariffs.
The Controversial DEI Stance and Customer Boycotts
A critical factor in Target’s recent struggles has been the widespread public backlash surrounding its diversity, equity, and inclusion (DEI) policies. The controversy first flared in 2023 with its LGBTQ+-themed Pride Month merchandise collection, leading to accusations of promoting controversial items, which sparked conservative boycotts, threats against employees, and even in-store vandalism. In response to mounting pressure, including efforts by the current Trump administration to roll back corporate DEI initiatives, Target announced in January 2025 that it would scale back some of its DEI programs, including hiring targets for minority employees and disbanding a racial justice executive committee.
This retraction, however, ignited a fresh wave of outrage and boycotts, this time from progressive groups, civil rights organizations, and even some descendants of Target’s co-founders, who deemed the move a “betrayal.” Notably, Rev. Jamal Bryant initiated a 40-day “Target Fast,” contributing to reduced foot traffic and acknowledged impacts on sales. The company is now also facing class-action lawsuits from investors alleging that Target misled them about the financial risks associated with its DEI programs.
Financial Performance and Market Reaction
The financial news on August 20, 2025, exacerbated investor concerns. While Target’s second-quarter earnings per share (EPS) of $2.05 narrowly beat Wall Street expectations, it still represented a decrease from $2.57 in the prior year. More critically, the modest improvement in comparable sales (down 1.9% in Q2 versus 3.8% in Q1) and a 4.3% growth in digital sales were overshadowed by the broader sales decline and the uncertain outlook. The company reaffirmed its cautious full-year forecast, projecting a low-single-digit decline in sales for fiscal 2025. This current financial instability caused Target’s shares to plummet by over 10% in premarket trading on the day of the announcement, cementing its position as one of the worst-performing stocks in the S&P 500 for the year.
A New Era Under Michael Fiddelke
Michael Fiddelke, a 49-year-old Target veteran with over 20 years at the company, is poised to take the helm. Having started as a finance intern, he has held diverse leadership roles spanning finance (including Chief Financial Officer), merchandising, human resources, and operations. Most recently, as COO, he established the “enterprise acceleration office,” designed to streamline operations and foster agility. The board’s unanimous decision to appoint Fiddelke, following an extensive succession process that considered external candidates, signals confidence in his deep institutional knowledge and strategic capabilities. Fiddelke acknowledged the challenging landscape, stating that the company has “work to do to reach our full potential” and expressed an urgent commitment to “refocus our strategy” and “regain our momentum.”
This pivotal leadership transition comes at a critical juncture for Target. As the company navigates fierce competition, cautious consumer spending, and the deeply divisive implications of its DEI policies, all eyes will be on Fiddelke to chart a new, sustainable path to growth and restore investor confidence. This unfolding news story highlights the complex interplay of business strategy, social responsibility, and market dynamics in today’s retail environment.
