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Target CEO Brian Cornell is stepping down as the popular retailer continues to face a decline in sales amid backlash from its retraction of diversity, equity and inclusion hirings, CNN reports.
Cornell's departure was widely respected and Target has picked an internal candidate, current chief operating officer Michael Fiddelke, as his replacement. Cornell will, however, stay with the company in an executive chairman role.
Cornell took over as the company's CEO in 2014 and was responsible for its revitalization, which included remodeling stores and strengthening its online business to compete with popular delivery services. Target has, however, slumped in recent years due to several strategic missteps, as well as customers purchasing less clothing and home goods and stiff competition from the likes of Walmart, Amazon and Costco.
Target's sales reportedly dropped for the third consecutive quarter with shares falling by 10% in premarket trading on Wednesday (August 20), while its stock is reported to be among the worst performing companies in the S&P 500 for 2025.
“This an internal appointment that does not necessarily remedy the problems of entrenched groupthink and the inward-looking mindset that have plagued Target for years,” said Neil Saunders, an analyst at GlobalData Retail, in a note to clients obtained by CNN on Wednesday. “Target, which used to be very attuned to consumer demand, has lost its grip on delivering for the American shopper.”
Target ended some of its DEI programs earlier this year, which led to protests from consumers. Target acknowledged its DEI retraction hurt sales as it came under more pressure for its decision than other companies because its DEI programs were the core of its business and its base of customers is reported to be more progressive than its competitors.
Anne and Lucy Dayton, the daughters of late Target co-founder Douglas Dayton, called the decision "a betrayal." Target, which is also known to have trendier items and more nonessential merchandise than its competitors, was also affected by tariffs and consumer slowdown in recent months.