Brian Cornell Quits as Target CEO Amid DEI Controversy

Cornell took the reins in 2014, inheriting a company still recovering from a costly misadventure in Canada and struggling to reconnect with American shoppers. He was credited with revitalizing Target’s image, putting an emphasis on sleek but affordable product lines, and re-establishing the brand as a reliable player in the crowded retail market. His early years were marked by steady growth and a sense that Target had regained its footing. Yet the retail landscape has shifted dramatically in the last several years, and Cornell’s final chapters as CEO look much different than his celebrated beginning.

The company’s recent financial results make that clear. Target’s net income dropped by about 21 percent in the latest quarter, with comparable sales slipping 1.9 percent. That means in eight of the last ten quarters, sales have either stalled or gone backwards, a pattern that has unsettled investors and raised questions about whether the company’s formula for mixing value and style still works in a highly competitive environment, according to The Guardian.

Part of Target’s struggle has less to do with merchandise and more to do with identity. Earlier this year, the company scaled back on several of its diversity, equity, and inclusion programs after pressure from conservative groups. That decision angered many customers, particularly within Black communities, and spurred a boycott campaign called the “Target Fast,” which drew more than 250,000 pledges. Rev. Jamal Bryant, one of the leaders of the boycott, called it “a reminder that where you spend your dollar is where you spend your vote.” For a brand that had positioned itself as progressive and socially conscious, the retreat has been jarring, and the backlash shows how quickly consumer trust can erode when corporate values appear inconsistent.

Wall Street has not been kind either. Target’s stock fell more than 6 percent in pre-market trading on the day the leadership change was announced, a reflection of both disappointing earnings and unease about the future. Fiddelke, who has spent two decades at the company, is viewed as a steady insider, but some investors have quietly wondered whether appointing a leader without outside CEO experience signals a lack of fresh vision. One retail analyst told KSTP: “Investors were hoping for an outsider who could shake things up, but instead they got continuity. That can be both reassuring and concerning.”

The change comes at a moment when major retailers are locked in what analysts are calling a “value war.” With household budgets strained by inflation and rising costs, chains like Walmart and Amazon have doubled down on steep discounts and bulk savings, forcing competitors like Target to chase prices lower. Target has responded by spotlighting its private labels and expanding bargain bins in stores, but competing at the bottom line has cut into margins.

There is also the question of whether Target can recapture its reputation for making shopping fun. The company recently introduced a new membership program called Target Circle 360, and is experimenting with store initiatives to bring customers back. Retail insiders say future strategy may involve leaning into categories like toys and home décor, areas where Target once set trends, while investing more heavily in digital sales and delivery logistics.

Cornell’s legacy is complicated. For years, he was praised as the man who brought Target back to relevance, but in his final years, he was forced to navigate the realities of slowing sales, intense competition, and growing cultural polarization around corporate values. His compensation package tells part of the story, peaking at more than $18 million in 2023 before falling to just under $10 million in 2024, a sharp decline that mirrored the company’s fortunes. In a parting message, Cornell reflected: “It has been the honor of my career to serve this company, but it’s time for new leadership to guide Target into its next chapter.” 

What happens next will be watched closely not only by Wall Street but also by shoppers who have long seen Target as more than just another store. The company’s red bullseye has always stood for something between Walmart’s low-cost pragmatism and higher-end department stores’ aspirational edge. Losing that balance could mean losing a generation of customers who once saw Target as the sweet spot of American retail.

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