Target CEO Brian Cornell to Step Down in 2026: Can Michael Fiddelke Lead a Comeback:
After more than a decade at the top, Target is preparing for a changing of the guard. The retailer said Target CEO Brian Cornell will step down in February 2026 and become executive chairman, with Chief Operating Officer Michael Fiddelke set to take over as the next CEO.
The leadership handoff comes during a tough stretch for Target—marked by softer sales, tighter margins, a stock slide, and public backlash over its retreat from diversity, equity, and inclusion (DEI) initiatives.
At a glance
- Comparable sales fell 1.9% in Q2 2025, including a 3.2% drop in store traffic
- Digital sales rose 4.3%
- Gross margin slipped to 29% from 30% a year ago
- Target’s stock fell about 11% following the leadership news, per The Economic Times
- Brian Cornell exits day-to-day leadership in 2026; Michael Fiddelke named successor
Table of Contents
What went wrong
Target’s recent results reflect a few converging pressures:
- Value-focused consumers: Shoppers have been trading down and stretching budgets, making competition from discount chains and online marketplaces even fiercer.
- Traffic slowdown: Store comps fell, a sign that Target’s in-person draw weakened despite modest growth in digital orders.
- Margin squeeze: Gross profit margins tightened to 29%, down from 30% last year, amid elevated costs and price-matching pressures.
“We’re not pleased with the results,” Cornell told Yahoo Finance’s Brian Sozzi, while noting the business showed signs of improvement heading into the third quarter.
The DEI rollback—and the trust gap
One flashpoint has been Target CEO Brian Cornellpullback on certain DEI programs. The shift prompted criticism and reported consumer boycotts, particularly among Black communities. Members of the founding Dayton family also publicly warned the move could erode trust among loyal shoppers. The reputational hit has complicated Target’s job of winning back lapsed customers at a time when every visit matters.
Cornell’s legacy: From revival to reset
When Target CEO Brian Cornell took the reins in 2014, Target doubled down on store remodels, built a stronger digital backbone, and launched popular owned brands that helped the company top $100 billion (about £74 billion) in annual sales by 2021. Those wins are real—but recent controversies and a tougher retail climate have overshadowed them, forcing a reset.
Who is Michael Fiddelke?
A 20-year Target veteran, Michael Fiddelke has led across finance, merchandising, operations, and HR—experience that should help in a turbulent moment. As COO, he’s already been close to the operational levers Target will need to pull: merchandising discipline, in-store experience, and technology investment.
Fiddelke’s early priorities
- Reignite merchandising appeal: Sharpen value, refresh owned brands, and deepen exclusive partnerships to drive differentiation.
- Win back traffic: Improve store experience and convenience across pickup, drive-up, and delivery to convert occasional shoppers into loyal ones.
- Invest with discipline: Modernize tech and supply chain while protecting margins.
- Rebuild trust: Clarify Target’s values and community commitments to repair relationships with core customer groups.
- Compete on price—smartly: Engage in price wars where it counts, without sacrificing profitability across the board.
What investors and shoppers will watch next
- Traffic stabilization: Do store visits recover as assortments and value messaging improve?
- Margin trajectory: Can Target grow profit per visit while reinvesting in price and experience?
- Brand trust: Does sentiment rebound following the DEI rollback?
- Digital mix: Does online growth continue without cannibalizing in-store profitability?
The bottom line
Target CEO Brian Cornell next chapter will hinge on execution. If Michael Fiddelke can balance value with distinct merchandising, rebuild trust, and streamline operations, he’ll have the foundation to turn around comps and margins. The brand still has scale, loyalty, and a track record of reinvention—now it needs momentum.
Q1: When will Brian Cornell step down as Target’s CEO?
A: Target says Target CEO Brian Cornell will step down in February 2026 and become executive chairman to support the transition.
Q2: Who is Michael Fiddelke, and what’s his background?
A: Michael Fiddelke is Target’s Chief Operating Officer and a 20-year company veteran with leadership experience across finance, merchandising, operations, and HR.
Q3: Why are Target’s sales under pressure?
A: Comparable sales fell 1.9% in Q2 2025 amid weaker store traffic, tighter consumer budgets, and intense competition from discount and online rivals.
