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Target’s CEO is stepping down as customers turn away

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By illuminem briefings

· 3 min read


illuminem summarises for you the essential news of the day. Read the full piece on CNN or enjoy below:

🗞️ Driving the news: Target CEO Brian Cornell will step down in February 2026 after an 11-year tenure marked by both remarkable growth and a steep recent downturn
He will be succeeded by Michael Fiddelke, the current COO and a 20-year veteran of the company
The leadership change comes amid declining sales, mounting investor concern, and backlash to Target’s retreat from its diversity, equity and inclusion (DEI) commitments

🔭 The context: Cornell revitalized Target in the 2010s, steering the company through a major digital transformation and pandemic-era boom
However, the past three years have seen Target struggle with shifting consumer behavior, inflation, and mounting political pressure from both ends of the spectrum
The company’s move away from DEI programs, coupled with the removal of LGBTQ+ merchandise under right-wing pressure, has alienated core customer segments and drawn internal criticism from founding family members

🌍 Why it matters for the planet: Target’s shift away from DEI commitments raises broader concerns about corporate accountability and social sustainability
As a major U.S. retailer with significant market influence, Target’s decisions could signal a wider rollback of inclusive business practices across the sector
Furthermore, its high reliance on imported goods and discretionary spending highlights vulnerabilities in global supply chains and consumer resilience under inflation and trade pressure — key challenges for sustainable retail

⏭️ What's next: Fiddelke has pledged to modernize Target’s offerings through initiatives like “Fun 101,” aiming to re-engage trend-conscious consumers and reenergize store experiences
Investor skepticism remains about whether internal leadership can bring the bold changes needed
Analysts remain divided over whether strategic tweaks will suffice or if Target needs a more fundamental business model overhaul
The first major test of the new CEO’s strategy will come with 2026 Q1 earnings and holiday season performance

💬 One quote: “Target, which used to be very attuned to consumer demand, has lost its grip on delivering for the American shopper.” – Neil Saunders, GlobalData Retail

📈 One stat: Target’s stock has dropped nearly 10% year-to-date, placing it among the worst performers in the S&P 500.

See on illuminem's Data Hub™ the sustainability performance of Target and its peers Walmart, Amazon, and Costco

Click for more news covering the latest on corporate governance

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illuminem's editorial team, providing you with concise summaries of the most important sustainability news of the day. Follow us on Linkedin, Twitter​ & Instagram

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