Could this decision spark the end of Target in the United States?

After more than a decade at the helm, Target’s CEO Brian Cornell is stepping down, marking the end of an era for one of America’s most recognized department store chains. His departure comes amid sliding sales and backlash over the company’s decision to abandon diversity and inclusion policies.

Michael Fiddelke, Target’s current chief operating officer who has been with the company for 20 years, will take over on February 1, 2026. Cornell, who became CEO in 2014, is credited with lifting the retailer to new heights and even mounting a serious challenge to Amazon.

But today, Amazon, Walmart and Costco have become Target’s greatest threat. The company is now in crisis, reporting an 8% drop in sales in premarket trading. “Target, which used to be highly attuned to consumer demand, has lost the race to meet the needs of American shoppers,” said Neil Saunders, an analyst at GlobalData Retail.

2025, a turbulent year for Target

Earlier this year, Target ended a series of diversity, equity and inclusion (DEI) programs, a move that sparked anger among supporters. Even the daughters of one of the co-founders called the decision a “betrayal.” The company later admitted the reversal hurt its sales.

“Target is falling behind its competitors and facing increasingly complex challenges,” said Robert Ohmes, an analyst at Bank of America. The retailer’s decline is stark – in 2018, Cornell was named Business CEO of the Year, but by 2025, analysts are skeptical about whether the company can recover.

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