New York — Target Corp. announced Wednesday that longtime Target CEO Brian Cornell will step down after more than a decade at the helm, marking the end of an era at the embattled retailer.

Cornell, who has led Target since 2014, will transition to executive chairman on February 1, 2026. He will be succeeded by Michael Fiddelke, Target’s current chief operating officer and a 20-year company veteran who started as an intern.

The leadership change comes as Target grapples with declining sales, stiff competition, and fallout from its rollback of diversity, equity, and inclusion (DEI) programs.

Cornell’s Legacy

Cornell is credited with reviving Target during his early years. He spearheaded store remodels, expanded the company’s online presence, and helped position Target as a stylish yet affordable alternative to Walmart and Amazon.

In 2018, Target reported its best results in a decade. A year later, Cornell was named CNN Business’ CEO of the Year. The retailer thrived during the pandemic, benefiting from surging demand for essentials and home goods as Americans stayed indoors.

But momentum faded in 2022. Target was hit by overstocked inventory, decades-high inflation, and changing consumer habits. Shoppers began prioritizing essentials over discretionary goods like apparel and home furnishings — categories that make up more than half of Target’s offerings.

Sales Slump and Market Pressure

Target reported its third-straight quarterly sales decline this week, sending its stock down 10% in premarket trading. Shares of Target (TGT) are among the worst performers in the S&P 500 this year.

Analysts say tariffs have compounded the pain. Target imports roughly half of its merchandise, compared to Walmart’s 33%. That has forced the retailer to raise prices at nearly double the pace of its larger rival, according to Bank of America analyst Robert Ohmes.

“Target’s long-term outlook is deteriorating,” Ohmes warned in a research note. “Target is falling behind peers and has tougher challenges.”

DEI Backlash and Brand Struggles

Target has also faced reputational damage from its handling of social issues. Earlier this year, the company scaled back DEI initiatives that had been core to its identity, drawing criticism from longtime supporters. Anne and Lucy Dayton, daughters of a Target co-founder, accused the company of “betrayal.”

The reversal hurt sales and alienated progressive shoppers who once saw Target as a champion of inclusivity. The controversy followed a separate uproar in 2023, when the retailer pulled certain LGBTQ-themed merchandise after employees faced threats.

“Target, which used to be very attuned to consumer demand, has lost its grip on delivering for the American shopper,” Neil Saunders, an analyst at GlobalData Retail, wrote in a note. He criticized the decision to appoint an insider, saying it perpetuates “entrenched groupthink and the inward-looking mindset that have plagued Target for years.”

Leadership Transition

Despite calls from some analysts to hire an outsider, Target’s board opted for continuity with Fiddelke. The 20-year company veteran has held multiple leadership roles across finance, operations, and supply chain.

Industry watchers remain divided on whether Fiddelke can steer the retailer out of its slump. Supporters argue his deep knowledge of Target’s operations will help in a difficult retail climate. Critics warn the company may need bolder, outsider-driven changes to regain lost ground.

The Road Ahead

With tariffs biting, shoppers trading down to essentials, and competition from Walmart, Amazon, and Costco intensifying, Target faces one of its most challenging chapters in decades.

The company’s future hinges on whether it can reestablish relevance with consumers while navigating economic headwinds and cultural flashpoints.

Cornell, reflecting on his tenure, once said: “Target has earned a place in the retail winners’ circle by investing in our business and staying true to our guests and our purpose.” Whether his successor can reclaim that momentum remains an open question.