Target is entering a new chapter, and it is not one of growth. After more than a decade at the helm, CEO Brian Cornell announced he will step down in February 2026, as the retail giant grapples with a dramatic decline in sales and backlash following its rollback of diversity, equity, and inclusion (DEI) efforts.
Cornell, 66, will be replaced by Michael Fiddelke, the company’s current chief operating officer, who has been with the brand for more than 20 years, starting out as an intern. Fiddelke is set to take over on Feb. 1, 2026, amid what analysts are calling a crisis of relevance for the once trendsetting retailer.
“Mike is the right candidate to lead our business back to growth,” Cornell said in a call with investors on Wednesday, August 20, noting that the board selected Fiddelke after reviewing a strong list of external and internal candidates.
But not everyone is convinced that an internal promotion is the change Target needs.
“This internal appointment does not necessarily remedy the problems of entrenched groupthink and the inward looking mindset that have plagued Target for years,” said Neil Saunders, an analyst at GlobalData Retail. “Target, which used to be very attuned to consumer demand, has lost its grip on delivering for the American shopper.”
Once a Darling of Progressive Shoppers
Target has long branded itself as a socially conscious alternative to Walmart, winning over many LGBTQ+ and progressive consumers in the mid 2010s with inclusive ad campaigns, LGBTQ+ Pride merchandise, and corporate DEI programs. But in recent years, that identity has started to blur and alienate both sides of the political spectrum.
Earlier this year, the company faced backlash for scaling back its Pride merchandise displays and pausing internal DEI trainings following public pressure from right wing groups.
The decision ignited fury among many of the brand’s LGBTQ+ customers and allies, who had come to view Target as a rare corporate ally in an increasingly polarized retail environment.
Even Anne and Lucy Dayton, heirs to one of Target’s founding families, condemned the rollback, calling it “a betrayal.”
Falling Behind in a Hypercompetitive Market
Target’s troubles, however, run deeper than internal policies. According to the Associated Press, the retailer reported a 21 percent drop in net income for the quarter ending August 2, 2025. Comparable sales have been stagnant or declining in eight of the past 10 quarters, a worrying sign for a company once hailed as a leader in affordable style and convenience.
With nearly 2,000 stores across the United States, Target now finds itself struggling to keep pace with retail giants like Amazon, Walmart, and Costco, all of which have invested heavily in online infrastructure and ultra competitive pricing.
The post pandemic landscape hasn’t helped either. Analysts point to increased price sensitivity among consumers and a shift toward budget retailers like TJ Maxx and Dollar General as key factors dragging Target down.
Meanwhile, Target’s online operations, once seen as its key to future proofing, have lagged behind competitors. And customer loyalty, once one of the brand’s greatest assets, has eroded as its cultural relevance fades.
A Broader Crisis in Brick and Mortar Retail
Target isn’t the only retail brand feeling the pinch. Earlier this month, tween accessories chain Claire’s filed for bankruptcy for the second time, citing mounting debt and a shrinking brick and mortar market. The company will keep its stores open for now, but its future is uncertain.
The parallel between Target and Claire’s is telling: brands that once symbolized cultural moments and niche community appeal are now drowning in debt, changing consumer habits, and failed attempts at reinvention.
For Target, the transition to Fiddelke represents a potential inflection point, but only if the new leadership is willing to adapt.
What’s at Stake for LGBTQ+ Shoppers
For many queer shoppers, Target’s fall from grace represents more than corporate instability, it is a sign of how quickly support can be withdrawn when public pressure mounts.
Target’s earlier commitment to Pride campaigns, inclusive sizing, and visibility in its workforce once set it apart. But its rapid retreat from these values in the face of boycotts has prompted questions about just how deep its commitment really runs.
While the company remains a major retail player, its once strong cultural cachet is fading fast, and with it, the trust of the communities it once courted.
As LGBTQ+ consumers increasingly look to support brands that are consistent, vocal, and courageous in their advocacy, Target will have to work harder than ever to regain its footing.
Whether new leadership will rise to the moment or double down on the status quo remains to be seen.
