Target CEO Steps Down Amid Tumbling Sales And Boycotts
Target CEO Brian Cornell is stepping down after 11 years at the helm, following a period of declining sales and controversy over the company’s decision to scale back its DEI initiatives, according to CNN. The retailer opted to promote from within, naming Michael Fiddelke, the company’s current COO, as the new CEO. Fiddelke, a 20-year veteran of Target who started as an intern, will officially take over on Feb. 1, 2026.
In a call with analysts on Wednesday, Cornell expressed confidence in Fiddelke’s leadership, noting that he was selected from a strong pool of both internal and external candidates. Cornell claimed Fiddelke was the “right candidate to lead our business back to growth,” during a call with analysts. He will remain on board as executive chairman.
Poor sales and Target’s DEI retreat are to blame.
Cornell’s tenure, which began in 2014, was marked by a turnaround that saw Target revamp its stores and expand its online presence to better compete with the likes of Amazon. However, his departure comes at a time when the company is struggling to maintain its edge in an increasingly competitive retail landscape. Following a third consecutive quarter of sales declines, Target’s stock dropped 10% in premarket trading, making it one of the worst performers in the S&P 500 this year.
The Associated Press noted that the retail giant, which has 1,980 U.S. stores, reported a 21% drop in net income with sales dipping 1.9% over the last three months. The company has seen stagnant sales growth in eight out of the past 10 quarters, including the latest period. Target’s financial troubles are compounded by ongoing challenges in keeping pace with competitors like Walmart, Amazon, and Costco, particularly in the wake of the COVID-19 pandemic.
“Target, which used to be very attuned to consumer demand, has lost its grip on delivering for the American shopper, “ said Neil Saunders, an analyst from GlobalData Retail, during Wednesday’s meeting, according to CNN.
Adding to its woes, the retailer faced significant backlash after rolling back its DEI initiatives. Target had emerged as a vocal advocate for diversity and inclusion in 2020, particularly after the murder of George Floyd. As reported by MadameNoire, at the time, Target pledged to increase its Black workforce by 20% over three years and committed to spending over $2 billion with Black-owned businesses by 2025. However, in response to political pressure, including a campaign led by the Trump administration, Target scaled back many of its DEI efforts, drawing criticism from both consumers and activists.
In late February, Target faced a major protest from The People’s Union USA, an activist group, which led to a sharp decline in sales and app traffic. The retailer saw a drop in web traffic of 1%, but a significant 10.9% decrease in app usage, which further impacted its stock. The company lost roughly $12.4 billion in market value following the protest.
Notably, Anne and Lucy Dayton, daughters of one of Target’s co-founders, criticized the company’s actions, calling the DEI retreat a “betrayal.”
Target CEO Steps Down Amid Tumbling Sales And Boycotts was originally published on hellobeautiful.com
