In a significant shift at the helm of one of America’s largest retailers, Target Corporation announced today that its CEO, Brian Cornell, will step down effective February 1, 2026. He will transition to the role of executive chair of the company’s Board of Directors. Stepping into the CEO role will be Chief Operating Officer and 20-year company veteran Michael Fiddelke, who will also join the board.
Under Cornell’s leadership since 2014, Target experienced substantial growth—its revenues climbed by $34 billion, transforming it into a $100+ billion omnichannel powerhouse, even pioneering services like same-day Drive Up and enriching its owned-brand portfolio.
Mounting Challenges Behind the Leadership Change
The decision follows consecutive quarters of weakening financial performance:
- Target reported a 21% decline in net income for the quarter ending August 2, with a 1.9% drop in comparable sales.
- The company has also faced a consumer boycott, particularly from Black Americans, in response to its rollback of diversity, equity, and inclusion (DEI) initiatives—including reducing LGBTQ+ Pride merchandise—which spotlighted growing public discontent tied to shifting corporate values.
- Investor confidence wavered immediately following the announcement, with Target’s stock tumbling between 8% and 10%. Analysts pointed to concerns over internal groupthink and questioned whether an insider-candidate could catalyze the strategic turnaround needed.
A Veteran Successor with a Fresh Vision
Michael Fiddelke is not new to the challenge. Since joining Target as an intern in 2003, he has held roles across merchandising, finance, operations, and HR. As COO, he spearheaded the Enterprise Acceleration Office, driving over $2 billion in efficiencies and championed initiatives around team member compensation, including “Dream to Be” development programs.
Fiddelke commented:
“We have work to do to reach our full potential… Now’s the time to take full advantage of our strengths, embrace change with pace and purpose, and regain our momentum.”
Board leader Christine Leahy praised Fiddelke’s blend of deep institutional knowledge and fresh perspective, calling him “the right leader to return Target to growth.”
Looking Ahead
| Leader | Position Change | Effective Date |
|---|---|---|
| Brian Cornell | CEO → Executive Chair | February 1, 2026 |
| Michael Fiddelke | COO → CEO; Joining Board | February 1, 2026 |
Cornell expressed confidence in his successor, stating:
“There is no one better suited to move Target forward than Michael Fiddelke… Those leadership attributes will be critical in shaping the next generation of Target.”
The leadership transition signals a pivotal moment for Target as it grapples with fierce competition, shifting consumer sentiment, and internal pressures to balance profit with purpose. Fiddelke’s mandate will be to reinvigorate the brand—reinforcing merchandising, clean and well-stocked stores, a strong shopper experience, and technological innovation.
