Target CEO Brian Cornell to step down amid sales slump and stock plunge

Target Corporation announced that CEO Brian Cornell decided to step down in February 2026 after an 11-year tenure.

His service period was marked by both a remarkable turnaround and a recent severe slump that has driven sales down and alienated core customers.

The company announced that the current Chief Operating Officer Michael Fiddelke will replace him, who has been serving in the company for the past 20 years.

This move comes as the retail giant reports its third consecutive quarter of declining sales, resulting in Target stock tumbling 10% in premarket trading.

The company’s deep-rooted crisis is reflected through its annual performance as it is listed among the worst performers in the S&P 500 in 2025.

Industry experts suggest that a combination of strategic missteps led to this decline. One of them is Target's heavy reliance on discretionary goods such as home decor and clothing. This has backfired as inflation-weary shoppers prioritise essentials.

Such steps put the company at a disadvantage against competitors like Walmart which derives half its business from groceries.

Additionally, higher exposure to imported goods has compelled Target to increase prices more aggressively to counter new tariffs, further reducing the number of customers.

Recently, the company has also faced a severe cultural backlash. Target decided to retreat from its long-standing Diversity, Equity, and Inclusion (DEI) initiatives earlier this year, which had exasperated its progressive customer base and was called a “betrayal” by the family of its co-founder.

Some experts also criticised the board’s choice of an internal successor, contending it fails to address a potential culture of “entrenched groupthink.”

The new CEO will face significant challenges including stabilising sales, rebuilding brand trust, and navigating a highly competitive retail landscape.