Target CEO Brian Cornell will step down on February 1, 2026, as the retailer grapples with declining sales and increased competition. The Minneapolis-based company announced that Michael Fiddelke, the current Chief Operating Officer and a 20-year veteran of Target, will succeed Cornell.

Cornell's departure comes after a challenging period for Target, which has struggled to regain its footing in the retail market since the COVID-19 pandemic. Under Cornell's leadership, Target revitalized its brand and expanded its online presence, but recent sales figures have been disappointing. The company reported a 21% drop in net income for the quarter ending August 2, with comparable sales down 1.9%. This marks the eighth decline in comparable sales over the past ten quarters.

Fiddelke, who has been instrumental in overhauling Target's supply chain and enhancing its digital services, will take on the role at a critical time. He has outlined three main priorities: reclaiming Target's merchandising authority, improving the in-store shopping experience, and investing in technology. "When we’re leading with swagger in our merchandising authority, when we have swagger in our marketing, and we’re setting the trend for retail, those are some of the moments I think that Target has been at its highest in my 20 years," Fiddelke said.

The leadership change coincided with Target's announcement of another quarter of sluggish results, leading to a drop in its stock price. Analysts have expressed mixed feelings about Fiddelke's appointment, with some suggesting that an outsider might have been a better choice to address the company's entrenched issues. Neil Saunders, a managing director at GlobalData Retail, noted, "This is an internal appointment that does not necessarily remedy the problems of entrenched groupthink and the inward-looking mindset that have plagued Target for years."

Target's recent struggles have been compounded by a retreat from its diversity, equity, and inclusion (DEI) initiatives, which has sparked backlash from customers and activists. The company has faced consumer boycotts since it scaled back its DEI programs earlier this year, a move that many viewed as a betrayal of its commitment to inclusion.

As shoppers increasingly turn to competitors like Walmart and off-price retailers, Target has seen a shift in its customer base. While lower-income shoppers have driven some growth, the retailer has lost appeal among wealthier consumers. Market research indicates that Target has only gained or maintained market share in 14 out of 35 merchandise categories tracked during the first half of the fiscal year.

Fiddelke's plan includes a focus on trendier merchandise and improving store conditions. He emphasized the need for Target to enhance its reputation for stylish yet affordable products, a niche that has been eroded in recent years.

Cornell, who has been with Target since 2014, will transition to the role of executive chairman after his departure. His tenure included significant challenges, including a major data breach that damaged the company's reputation and a successful pivot to online sales during the pandemic. However, as inflation and changing consumer preferences have taken their toll, Target's future remains uncertain.