Target CEO steps down amid weak sales and boycott

After an 11-year tenure marked by a significant turnaround and subsequent challenges, Target CEO Brian Cornell is stepping down. The decision comes as Target experiences declining sales and fallout from recent shifts on diversity, equity, and inclusion (DEI) policies.

Cornell will be succeeded by Michael Fiddelke, Target’s current chief operating officer, effective February 1, 2026.

Boycotts from Black Americans made a difference

In July many Black Americans were boycotting stores including Target and Amazon. Earlier this year more than 250,000 people signed a pledge to boycott Target. This came after the Rev Jamal Bryant, pastor of New Birth Missionary Baptist Church, called for a 40-day “Target Fast.”

“They made a public commitment to Black businesses—not as part of DEI or affirmative action, but out of human decency,” Bryant said. “And yet, with President Trump’s return to the White House, they walked away from that covenant.”

Bryant continued, “We are engaged in this battle because you don’t get to walk away from your public commitments to Black people and think there will not be consequences and repercussions.”

The Guardian reports the company had also previously come under fire in 2024 after it reduced its collection of LGBTQ+-themed merchandise for Pride month, in response to rightwing criticism.

Target CEO Cornell, who took the helm in 2014, is widely credited with revitalizing Target. He spearheaded a strategy that included store remodels, strengthening the company’s online presence to compete with Amazon, and expanding its portfolio of popular private-label brands. However, the post-pandemic landscape has presented new hurdles.

Weak sales have become a recurring issue for Target. The company reported flat or declining sales in eight of the last ten quarters. They also reported a 21% drop in net income in the most recent quarter.

Target CEO scaled back its DEI policies earlier this year

This financial slump has been exacerbated by a deeply divisive controversy surrounding Target’s DEI initiatives. The company, which had been a vocal proponent of racial justice and inclusion, made a sharp pivot in early 2025.

This included ending its three-year DEI goals, concluding its Racial Equity Action and Change (REACH) initiatives. It also ceased its participation in a key LGBTQ+ corporate equality survey.

The move, which some sources suggest was a response to political pressure and a shifting external environment, backfired spectacularly.

While it may have been intended to appease conservative critics, it alienated a significant portion of Target’s customer base, particularly Black and Hispanic shoppers who had become increasingly loyal to the brand due to its previous progressive stance.

Target was caught between conservative activists and progressive consumers

The retreat from DEI commitments triggered widespread boycotts from civil rights groups and consumers, causing a noticeable drop in foot traffic and contributing to the company’s financial woes. A class-action lawsuit was also filed, alleging that Target misled investors about the risks of its DEI strategy reversal.

The backlash placed the company in an untenable position, caught between conservative activists and progressive consumers. Their DEI policy not only damaged the brand’s reputation but also revealed disconnections with a core segment of its market.

While Cornell’s departure is officially a succession plan, with him transitioning to the role of executive chair, it marks the end of an era defined by both success and, more recently, a struggle to navigate the complex intersection of corporate strategy and cultural politics.