Frank Nez 
On August 20, 2025, Target Corporation announced that CEO Brian Cornell will step down after 11 years, effective February 1, 2026, as the retailer grapples with declining sales and a consumer boycott over its retreat from diversity, equity, and inclusion (DEI) initiatives.
Cornell, who transformed Target into a $100 billion powerhouse, will transition to executive chairman, while Chief Operating Officer Michael Fiddelke, a 20-year company veteran, takes over as CEO.
The leadership change, reported by CNN, coincides with Target’s second-quarter earnings, which showed a 1.9% drop in comparable sales and a 20% profit decline, reflecting ongoing challenges in a competitive retail landscape and economic uncertainty.
Leadership Transition and Target’s Struggles
Cornell’s departure was widely anticipated, with analysts suggesting an external hire could bring fresh perspectives, but Target opted for Fiddelke, who started as an intern and has held roles in merchandising, finance, operations, and human resources, per CNN.
Cornell praised Fiddelke as the “right candidate to lead our business back to growth” during an August 20 analyst call, emphasizing his deep understanding of Target’s operations.
Fiddelke, who became chief financial officer in 2019 and chief operating officer in 2024, outlined three priorities: restoring Target’s merchandising “swagger,” enhancing customer experience, and leveraging technology for efficiency, per The New York Times.
Target’s second-quarter results, announced the same day, revealed net sales of $25.2 billion, down 0.9% year-over-year, with comparable sales falling 1.9% and operating income dropping 19.4%, per USA Today.
The company maintained its full-year forecast of a low-single-digit sales decline, citing pressures from tariffs and a consumer slowdown, per Forbes.
Shares fell nearly 10% in premarket trading on August 20, with a year-to-date decline of 23%, compared to gains for rivals Walmart (12.54%) and Costco (7.81%), according to a Forbes report.
DEI Backlash and Consumer Boycott
A significant factor in Target’s woes is the backlash following its January 2025 decision to scale back DEI programs, prompted by pressure from conservative activists and the Trump administration, per The Guardian.
Target, known for its progressive customer base and deeply integrated DEI initiatives, faced a boycott led by Rev. Jamal Bryant, who called for a 40-day “Target Fast” during Lent, with over 250,000 people pledging to shop elsewhere, per The Economic Times.
Anne and Lucy Dayton, daughters of a Target co-founder, labeled the move a “betrayal,” per CNN.
Target acknowledged the boycott’s impact, with Bryant noting customers “started driving extra miles to other places.”
RetailBrew reported a 3.1% drop in Q2 foot traffic, partly attributed to the DEI rollback.
Target’s progressive reputation, including its long-standing Pride collection and participation in the Twin Cities Pride parade, amplified the backlash, as the company had committed in 2020 to increasing Black representation by 20%.
The decision to pull back, alongside ending its Ulta Beauty partnership in August 2026, has eroded brand loyalty, with customers and former employees citing messy stores and a loss of Target’s “Tarzhay” charm—its nickname for affordable, stylish goods.
Economic and Strategic Challenges
Target’s struggles began in 2022 when it overstocked inventory amid spiking inflation, forcing markdowns that hit profits, per CNN.
The retailer’s focus on nonessential items like home goods and clothing, unlike competitors Walmart and Costco, has made it vulnerable to consumer cutbacks.
Tariffs, including a proposed 54% levy on Chinese imports, exacerbate challenges, as Target imports half its merchandise.
A softening labor market, with only 73,000 jobs added in July 2025, and rising inflation expectations (4.9% per the University of Michigan’s August survey) further strain shoppers, per Reuters.
Cornell’s tenure initially marked a turnaround, with 2018 seeing Target’s best results in a decade, earning him CNN Business’ CEO of the Year title in 2019.
His strategies, including store remodels, the 2017 Shipt acquisition for same-day delivery, and partnerships with Disney and Ulta, boosted sales from $74 billion in 2014 to $109 billion by 2024, per Yahoo Finance.
However, strategic missteps, like the failed Canada expansion costing $5.4 billion, and recent inventory issues have eroded gains.
Public and Analyst Reactions
The leadership change and earnings sparked varied responses.
On X, @MarketWatch noted on August 20, 2025, that Target’s stock dropped as Cornell’s exit overshadowed an earnings beat.
@thomashawk criticized Target’s locked-up merchandise, arguing it deters shoppers.
Analyst Neil Saunders of GlobalData expressed “mixed feelings” about Fiddelke’s internal appointment, citing risks of “entrenched groupthink.”
Conversely, Target’s board defended Fiddelke, with lead director Christine Leahy praising his “fresh eyes” mindset, per Yahoo Finance.
With Trump’s approval rating at 39% per an ABC News/Washington Post/Ipsos poll, his administration’s policies, including tariffs and federal layoffs, add economic pressure.
Fiddelke faces a daunting task to reverse Target’s sales slump, restore its “Tarzhay” reputation, and regain customer trust.
His Enterprise Acceleration Office, launched in May 2025, aims to speed innovation, but analysts question whether an insider can address Target’s challenges.
As the retail sector faces closures like Rosso Furniture & Décor, Target’s path forward will test Fiddelke’s leadership in a volatile market.
But I’m curious to know what you think, leave your thoughts and vote reaction below.
Also Read: Signs of Upcoming Job Losses Now Poses Risk to Spending
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