Target CEO Brian Cornell will step down following sharp sales declines, mounting boycotts, and a 10% stock plunge, leaving Target’s new leadership with an urgent turnaround challenge.
At a Glance
- Target CEO Brian Cornell to step down after more than a decade in charge
- Company reports 1.9% decline in comparable sales for Q2 2025
- Stock dropped over 10% in pre-market trading after the announcement
- Michael Fiddelke, Target’s COO, named as successor to lead turnaround
- Target’s reversal on diversity commitments drew backlash from multiple groups
Leadership Shake-up
On August 20, 2025, Target announced that CEO Brian Cornell will step down after leading the company for over ten years. The decision comes as Target struggles with declining sales and a bruised public image. Comparable sales for the second quarter fell 1.9%, and the company’s stock dropped more than 10% in pre-market trading after the announcement.
Watch now: Target CEO is stepping down as customers turn away · YouTube
The company has named Michael Fiddelke, its Chief Operating Officer and a 20-year Target veteran, as the new chief executive. Fiddelke pledged to act with urgency to restore growth and rebuild customer trust. The board’s choice of an insider signals a desire for continuity, though analysts caution that the challenges ahead may demand significant structural changes.
Policy Reversals and Fallout
Target’s leadership change follows a year of intense scrutiny after the company rolled back its diversity, equity, and inclusion (DEI) commitments in January 2025. The reversal, uncommon among large U.S. retailers, drew criticism from employee groups and advocacy organizations. More than 250,000 people pledged to boycott the company, while industry experts noted that the move failed to win back conservative shoppers who had previously distanced themselves.
The controversy left Target navigating backlash from multiple directions. While some groups pressed for renewed social commitments, others emphasized the importance of focusing on consistent retail operations and avoiding political entanglements. Analysts observed that Target’s inability to sustain a clear strategy eroded customer confidence.
Operational Strain
Beyond reputational challenges, Target has been grappling with operational shortcomings. Customers have cited issues ranging from out-of-stock merchandise to disorganized store layouts and extended checkout times. These persistent problems have weighed on customer loyalty at a time when inflation and economic uncertainty are already influencing consumer behavior.
Competitors such as Walmart have benefited by reinforcing core retail fundamentals, emphasizing pricing, stocked shelves, and efficient service. Industry observers suggest that Target’s operational issues predate its policy reversals and reflect deeper management and strategic difficulties.
Outlook Under New Leadership
As Michael Fiddelke assumes leadership, Target faces significant pressure to regain stability. In his first remarks, he acknowledged that the company is “not realizing our full potential right now” and promised urgent steps to rebuild momentum. Investors remain cautious, watching for signs of operational discipline and renewed focus on retail execution.
Analysts stress that the new CEO’s immediate priority will be to restore customer confidence and ensure reliable store experiences. Target’s future performance may depend on how effectively the company can reestablish itself as a trusted retailer in a competitive environment where consumers demand both value and consistency.
Sources
Click this link for the original source of this article.
Author: Editor
This content is courtesy of, and owned and copyrighted by, https://deepstatetribunal.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.
