Target CEO steps down as replacement quickly engages revitalization plan in Chicago

Target is navigating a significant leadership transition as Brian Cornell steps down as CEO after 11 years, reflecting the company’s slump in sales and retreat on diversity initiatives. According to CNN, Cornell will be succeeded by Michael Fiddelke, Target's chief operating officer, effective February 1, 2026. Cornell, who CNN says once revitalized Target with strategic store remodels and enhanced online presence, will remain as executive chairman.

Target has faced declining sales for three consecutive quarters, the company announced Wednesday, attributed largely to ineffective strategy and competition from retail giants like Walmart, Costco, and Amazon. Following the announcement, CNN reported that the company’s stock is considered among the S&P 500’s worst this year.

While Cornell's past strategies turned the company into a brick-and-mortar success—even being named CNN Business’ CEO of the Year in 2019—the recent pullback on diversity initiatives ignited backlash and a downturn in sales. CNN goes on to mention how Cornell's tenure saw activist and customer protests, adding to the recent pressure.

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Revitalization plans are already underway in Chicago

Michael Fiddelke takes the helm with a strong plan to reignite growth by emphasizing new and unique merchandise offerings and strengthening Target's private label portfolio, according to Business Insider. Fiddelke, with 20 years at Target, outlined Target’s major problems and his strategy to enhance the elevated shopping experience and operational efficiency during Target’s quarterly earnings call on Wednesday.

"We've identified the biggest challenges that slow us down: legacy technology that doesn't meet today's needs, manual work that can be automated, unclear accountabilities that slow decision-making, siloed goals, and a lack of access to quality data," Fiddelke said, as reported by Business Insider.  

Initiatives such as the Fun 101 merchandising concept and dynamic stores-as-hubs e-commerce models are already underway in Chicago, with a focus on delivering engaging shopping experiences, Business Insider said. The aim of Fiddelke’s approach is to restore consumer confidence and regain its stronghold in the market amidst its competitors.

According to CNN, GlobalData Retail analyst Neil Saunders reportedly told clients in a note Wednesday regarding Fiddelke, “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, which used to be very attuned to consumer demand, has lost its grip on delivering for the American shopper.”