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Target's CEO, Brian Cornell, is stepping down amidst challenges including customer boycotts over DEI policy adjustments and declining sales. He will be succeeded by Michael Fiddelke. Target faces criticism for scaling back diversity initiatives, leading to backlash and impacting sales. The company is also grappling with operational issues and increased competition from Walmart, affecting customer experience and value perception.
Target's CEO, Brian Cornell, is stepping down amidst challenges including customer boycotts over DEI policy adjustments and declining sales. He will be succeeded by Michael Fiddelke. Target faces criticism for scaling back diversity initiatives, leading to backlash and impacting sales. The company is also grappling with operational issues and increased competition from Walmart, affecting customer experience and value perception.
Brian Cornell, the CEO of Target, is stepping down as the embattled retail giant in the US faces ongoing customer boycott over its scaling back of diversity, equity and inclusion (DEI) initiatives. Brian Cornell will be replaced next year by , Target's chief operating officer, the company said on Wednesday.
One of the nation's largest retailers, Target has been struggling to find its groove on prices and merchandising as shoppers look elsewhere for both. Brian Cornell invested in private-label brands, remodeled Target stores and expanded the big-box chain's online sales. 20-year company veteran Michael Fiddelke, currently serving as chief operating officer, will succeed him as CEO.
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Who is Brian Cornell?
Cornell took the helm at Target in 2014, becoming the retailer's first CEO hired from outside the company. Before that, he led PepsiCo Americas Foods as CEO starting in 2012 and previously served as CEO of Walmart's Sam's Club.At Target, Cornell oversaw a remarkable transformation—growing the business into a $100 billion powerhouse and boosting revenue by $34 billion over 11 years. He drove major store remodels, expanded the digital and e-commerce side to rival Amazon, and successfully revitalized the brand after a difficult stretch.
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Brian Cornell's shock exit from Target
The leadership change at Target was announced with the company's second-quarter earnings report, which showed a decline of 1.9% in comparable sales from a year ago. That included a 3.2% drop in comp store sales and a 4.3% increase in comp digital sales.Sales at Target, which has almost 2,000 stores across the US, fell more than expected in the first quarter of 2025, and the retailer warned earlier this year that sales will continue to slip through the rest of the year. Target said people were scaling back spending over worries about the impact of tariffs and the state of the economy. The company also said customer boycotts affected sales.
The company scaled back many DEI initiatives in January after they came under attack by conservative activists and the White House, which triggered a backlash. A poll in February found that Americans had changed their shopping habits and abandoned some stores in response to corporations shifting their policies to align with the Trump administration.
ALSO READ: Target CEO Brian Cornell steps down after 11 years as sales continue to drop
Reports also suggested that many black Americans boycotted Target and Amazon, and earlier this year more than 250,000 people signed a pledge to boycott Target after the Rev Jamal Bryant, pastor of New Birth Baptist church in Georgia, called for a 40-day “Target Fast” that started at the beginning of the Lenten season.
In January this year, Target joined a wave of companies who pulled back on diversity, equity and inclusion (DEI) initiatives, as right-wing pressure leads companies to alter their commitment to hiring diverse candidates and expanding access. Target said in a statement that it will end its three-year diversity, equity and inclusion goals. In 2022, the company said that those goals included ensuring “equitable access to career advancement” and “equitable business decisions that increase relevance with diverse guests and support economic inclusivity.” Target had also committed in 2020 to expand Black representation at the company by 20%.
The retail giant also said it will stop participating in all external diversity-focused surveys, including a popular one from the Human Rights Campaign, an LGBTQ advocacy group. And it is “further evaluating” corporate partnerships and changing its “supplier diversity” team to “supplier engagement.” “We recruit and retain team members who represent the communities we serve and fuel a culture where everyone has access to opportunity and growth,” Target said in the statement.
Target has been losing ground to rival Walmart on value and product mix. The company is plagued by "issues like out of stocks, long wait times at registers, and increasingly messy stores," according to GlobalData analyst Neil Saunders, reports Axios. "All these things actively train customers not to shop at Target; especially during a period when the shopper is laser focused on value for money and time."
Source: EconomicTimes
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