After more than a decade at the helm, Brian Cornell is stepping down as CEO of Target, closing a chapter defined by both revival and turbulence. Cornell’s leadership, which began in 2014, brought fresh energy to the retailer during its early struggles, yet his final years were marked by sales slumps, mounting controversies, and shareholder frustration. On February 1, 2026, Michael Fiddelke, the company’s current chief operating officer, will take the reins. This internal promotion has sparked debate over whether Target can truly reset its course or if the company is doubling down on a strategy that no longer resonates with today’s shoppers.

Brian Cornell’s Legacy: From Turnaround to Turmoil

When Cornell took over in 2014, Target was in crisis mode. The company was still reeling from a high-profile data breach and a failed expansion into Canada. Under his leadership, Target revitalized its stores, improved e-commerce, and leaned into trendy collaborations that helped reconnect with millennial shoppers. By 2018, Target had posted its strongest results in a decade, and in 2019, Cornell was even named CNN Business CEO of the Year.

The pandemic further boosted the retailer’s fortunes as shoppers flocked to Target for home goods, essentials, and curbside pickup. For a moment, Target seemed untouchable. But the momentum didn’t last.

Video: Target CEO to step down amid company struggles

The Sales Slump That Changed Everything

Over the last three years, Target has been unable to keep pace with rivals like Walmart, Amazon, and Costco. The company’s dependence on discretionary categories such as clothing and home décor left it vulnerable as inflation pressured households. At the same time, Walmart’s advantage in groceries allowed it to retain more consistent foot traffic.

Target also struggled with tariffs, as nearly half of its inventory is imported—compared to roughly one-third for Walmart. This forced the company to raise prices at a faster pace, frustrating customers and eroding loyalty.

The result? Target reported three consecutive quarters of declining sales. Shares tumbled 10% in premarket trading this week alone, making Target one of the worst performers in the S&P 500 this year.

Michael Fiddelke: The Insider Taking the Helm

Instead of bringing in an outside voice to shake things up, Target’s board chose Michael Fiddelke, a 20-year company veteran who began as an intern. While Cornell praised him as the “right candidate to lead our business back to growth,” analysts are divided.

Critics argue that promoting from within risks perpetuating the same “groupthink” that has stalled innovation. Neil Saunders of GlobalData Retail bluntly noted that Target has “lost its grip on delivering for the American shopper.” Others, however, see Fiddelke’s deep experience as a strength, ensuring continuity while positioning him to address operational missteps more effectively.

The DEI Controversy: Losing Both Sides of the Culture War

Beyond financial struggles, Target’s brand has been battered by cultural controversies. Earlier this year, the retailer scaled back its diversity, equity, and inclusion programs—once a core part of its identity. The move alienated progressive shoppers and even drew condemnation from members of the Dayton family, descendants of Target’s co-founders.

On the flip side, Target also faced backlash from conservatives in 2023 over its LGBTQ Pride Month collection. Misinformation about swimsuits for transgender individuals spread online, leading to threats against employees and lawsuits from conservative legal groups. Target’s decision to pull some items only deepened the divide, leaving the company caught in the middle and damaging its sales further.

What Fiddelke Must Do Next

Video: This footage captures the moment the news broke—Target’s CEO Brian Cornell announcing his departure amid slumping sales and court public backlash, including consumer boycotts tied to the retailer’s retreat from diversity initiatives

On a recent analyst call, Fiddelke admitted, “We are not realizing our full potential right now.” His plan focuses on making Target fun and relevant again through initiatives like “Fun 101,” which emphasizes trends in electronics and home goods. He also pledged to limit price hikes despite tariff pressures and promised renewed investment in technology and store upgrades.

The question remains: Will these moves be enough? Some analysts believe the issues are cyclical and fixable, while others warn of deeper structural challenges that could leave Target trailing competitors for years to come.

Investor and Consumer Confidence on the Line

Investors are watching closely to see whether Fiddelke can stabilize sales and rebuild consumer trust. Customers, once loyal to Target’s mix of affordability and style, are questioning whether the brand still delivers value. For a retailer once known as a cultural trendsetter, that perception problem may be just as dangerous as any financial headwind.

Conclusion: Target at a Crossroads

Brian Cornell’s departure marks both an ending and a beginning. His early tenure revitalized Target and positioned it as a pandemic powerhouse, but recent years have been marked by setbacks, controversies, and lost ground to rivals. Michael Fiddelke now inherits a company in need of both innovation and stability.

The challenge ahead is steep: reignite consumer excitement, manage pricing pressures, navigate cultural minefields, and convince Wall Street that Target can reclaim its place as a retail leader. Whether Fiddelke’s insider status proves to be a strength or a weakness, one thing is certain—Target’s future is on the line, and the next few years will determine whether this iconic brand can rediscover its magic.