Target is undergoing a leadership crisis and significant sales decline, leading to CEO Brian Cornell stepping down after 11 years, with insider Michael Fiddelke appointed to revive the struggling retailer. The company faces a perfect storm of economic pressures, competitive threats, and customer backlash over diversity policy changes.
Who: Target Corporation, a major US retailer with nearly 2,000 stores, is central to this story. Key individuals include outgoing CEO Brian Cornell, 66, who led the company for 11 years, and incoming CEO Michael Fiddelke, 49, a 22-year company veteran who started as an intern. Customers, employees, and analysts are also affected, with reports of dissatisfaction and boycotts.
What: The core events involve Cornell’s resignation and Fiddelke’s promotion, announced on August 20, 2025, amid plummeting sales and operational struggles. Target has experienced a sharp decline in revenue, with comparable sales dropping 5.7% in the second quarter of 2025, and the company slashing its annual expectations. This follows a period of generally flat sales over the past four years, attributed to poor in-store experiences and strategic missteps.
When: The leadership change was confirmed on August 20, 2025, but the sales issues have been building for months. In May 2025, Target warned of a challenging environment, and the first quarter saw worse-than-expected declines. The backlash from diversity, equity, and inclusion (DEI) policy changes began earlier but intensified recently.
Where: This is primarily occurring in the United States, where Target operates its retail stores and faces intense competition from rivals like Walmart, Amazon, and Costco. The impact is nationwide, affecting nearly 2,000 locations and the company’s digital services.
Why: The sales slump is driven by multiple factors: economic inflation reducing consumer spending, fierce competition eroding market share, and a customer boycott triggered by Target’s decision to scale back DEI initiatives. The company had deeply ingrained diversity programs, and their retreat sparked significant backlash, compounded by operational issues like understaffed stores.
How: The deterioration unfolded through internal decisions and external pressures. Target’s move away from DEI goals alienated some customer bases, while economic conditions led to reduced purchases of home goods and clothing. Internally, leadership described the sales drop as a blip, but critics point to long-term identity loss and poor execution.
Impact: Target’s stock is among the worst performers in the S&P 500 this year, with financial losses and reputational damage. The company has lost market share in many categories and faces an uncertain future, with warnings of continued sales declines through 2025. Employees and vendors report morale issues and operational challenges.
What’s next: Fiddelke is set to take over as CEO, with plans to overhaul supply networks, expand digital services, and cut costs. However, analysts question whether an insider can implement the radical changes needed to counter competition and regain customer trust. The focus will be on reversing sales trends and stabilizing the brand.