Target CEO Brian Cornell to Step Down Amid Sales Slump and Stock Plunge

By Web Desk | August 20, 2025: Target Corporation announced that Chief Executive Officer Brian Cornell will step down in February 2026, bringing an end to his 11-year leadership at the retail giant. Cornell’s tenure, which began with a celebrated turnaround for the company, is now concluding amid sharp sales declines and a plunging stock price.

During his time as CEO, Cornell helped reposition Target as a competitive player in U.S. retail, driving growth through refreshed stores, stronger private labels, and digital expansion. However, the past year has been marked by a severe slump, with Target reporting its third consecutive quarter of falling sales. The company’s stock dropped 10% in premarket trading this week, cementing its place as one of the worst performers in the S&P 500 in 2025.

Leadership Transition

The company confirmed that Michael Fiddelke, Target’s current Chief Operating Officer and a 20-year veteran, will take over as CEO. Fiddelke’s appointment is seen as a move to maintain continuity, though some analysts worry that promoting from within may reinforce a culture of “entrenched groupthink” instead of driving new strategies.

Reasons Behind the Slump

Industry experts cite a series of missteps that have weighed down Target’s performance:

• Overreliance on discretionary items: Target leaned heavily on categories like clothing and home décor, which struggled as inflation-hit consumers prioritized essentials.
• Competitive gap in groceries: Unlike Walmart, which generates nearly half of its revenue from groceries, Target’s limited presence in everyday essentials left it vulnerable.
• Tariff exposure: Heavy dependence on imported goods forced Target to raise prices more aggressively, pushing away cost-conscious shoppers.

Cultural and Brand Backlash

Beyond financial hurdles, Target has faced cultural challenges. Earlier this year, the company scaled back its Diversity, Equity, and Inclusion (DEI) initiatives, a move that drew sharp criticism. Progressive shoppers voiced frustration, and the family of Target’s co-founder publicly labeled the retreat a “betrayal.” The controversy damaged the brand’s reputation at a time when customer loyalty was already eroding.

The Road Ahead

As Fiddelke steps into the top role, he faces steep challenges:

• Reversing sales declines and regaining customer trust.
• Rebuilding brand image after cultural and strategic missteps.
• Competing effectively against Walmart, Amazon, and other retail giants in a fiercely competitive market.

Target’s future now hinges on whether its new leadership can adapt to shifting consumer behaviors while restoring both financial performance and brand credibility.