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Why is Target's CEO stepping down?
Target's CEO, Brian Cornell, is stepping down in 2026 following a period of declining sales and internal challenges. The company has faced a 21% drop in net income in the second quarter, partly due to consumer boycotts linked to the rollback of diversity initiatives and increased competition. The leadership change aims to bring fresh strategies to address these issues.
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What are Target's current sales struggles?
Target has experienced flat or declining sales in eight out of the past ten quarters. Factors include increased competition from Walmart and off-price retailers, operational issues like shoplifting, and a damaged brand reputation due to controversy over Pride merchandise and DEI rollback. These challenges have contributed to a significant drop in profits and customer trust.
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How is Target planning to recover?
Target's new COO, Michael Fiddelke, plans to focus on improving style, customer experience, and technology. The company aims to reclaim merchandising authority, enhance the shopping environment, and address operational inefficiencies. These strategies are designed to restore growth and rebuild customer loyalty.
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What impact do customer boycotts have on Target?
Customer boycotts, especially from Black Americans and those opposed to the rollback of diversity initiatives, have hurt Target's sales and brand image. The backlash over Pride merchandise and DEI policies has led to decreased foot traffic and revenue, highlighting the importance of consumer sentiment in retail success.
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What has been Brian Cornell's impact as Target CEO?
Since becoming CEO in 2014, Brian Cornell helped revitalize Target after a major data breach. However, recent challenges, including declining sales and consumer backlash, have overshadowed his tenure. His departure signals a shift in leadership as Target seeks new strategies to navigate current market pressures.