After more than a decade at the helm, Target CEO Brian Cornell will step down as chief executive, transitioning next year to the role of executive chair, while longtime COO Michael Fiddelke is set to succeed him, a shift timed with the retailer’s faltering performance, reported the Associated Press.
The leadership transition, effective 1 February 2026, comes as Target contends with slipping net income, weak comparable sales and stock market jitters. Current COO Michael Fiddelke, a company veteran of over 20 years, has been appointed CEO by unanimous board decision, reported Reuters, amid ongoing efforts to restore strategic momentum.
In recent results, Target reported a 21 per cent drop in net income for the quarter ending 2 August, while comparable-store sales fell 1.9 per cent, marking eight out of the past ten quarters with flat or declining comparable performance, reported People magazine.
Fiddelke steps in with an urgent agenda. In his new capacity, he pledges to reclaim Target’s merchandising edge, improve in-store experience with cleaner, well-stocked outlets, and invest in technology across retail and supply chain operations, reported the Associated Press. These priorities reflect both recognition of the company’s past struggles and efforts to double down on operational execution.
Fiddelke’s credentials, however, are comprehensive. During his tenure, he has modernised Target’s supply chain, expanded the store and digital footprint and created the Enterprise Acceleration Office, aimed at speeding decision-making and operational agility, reported the Associated Press.
Industry commentary in Fortune had long identified him as the clearest heir apparent, praising his broad experience across finance, operations, merchandising and HR, and noting that his recent role leading the acceleration office was seen as a de facto test for the CEO role, reported Fortune via IndexBox.
Cornell, who assumed the top post in 2014, leaves behind a mixed legacy. He reinvigorated Target’s business through private-label expansion, omnichannel development and the 2017 Shipt acquisition.
The retailer’s revenue climbed significantly under his watch and Target successfully repurposed stores as logistics hubs during the pandemic, reported the Star Tribune. Yet, in recent years, inflation-driven inventory build-ups, backlash to DEI policy pullbacks and rising competition have eroded performance, reported Associated Press.
Fiddelke inherits the challenge of redefining Target’s value proposition — the retailer must reclaim its reputation for offering stylish products at everyday prices. Shoppers have increasingly shifted to rivals like Walmart and TJ Maxx, and consumer perception of Target has dimmed accordingly, reported Associated Press.