Target Corporation has made a bombshell leadership move while the company continues to face the fallout of heavy losses stemming from declining sales and angry customers. On Wednesday, CEO Brian Cornell, 64, would retire next year, the retailer revealed. Chief Operating Officer Michael Fiddelke will step into the role.
The decision follows a wave of retail challenges that have hit Target hard in recent months. Most prominently, the retailer was criticized after a controversial retreat drew significant backlash, forcing customers to leave stores in droves—including those of Target. A February poll indicated that many Americans altered their shopping habits in response to corporations aligning their policies with the Trump administration. These historical shifts have increased the burden on Target’s same-store sales performance.
In 2024, Target found itself in the hot seat after deciding to scale back its line of LGBTQ+-themed goods available during Pride Month. This decision brought out heavy criticism from coordinated right-wing groups, creating a toxic public relations environment for the company. That intense backlash from both sides of the political spectrum is partially responsible for Target’s difficulty retaining its customer base.
Target’s sales figures reflect this turmoil. The company announced an unexpected fall of 1.9% in comparable sales for the most recent period. Unfortunately, this recent trend underscores the mounting difficulties it has encountered for much of the last five quarters. Target has been struggling, with comparable sales flat or down in eight of the past ten quarters. The implication of this trend is truly alarming when pondering the company’s long-term growth plan.
As Target gears up for this leadership transition, stakeholders will be watching closely, waiting to see how Fiddelke plans to navigate these challenges. His appointment as CEO foreshadows a transformational moment for the company. At its core, it seeks to respond to a rapidly evolving retail environment and consumer experience and restore consumer confidence.