Target’s CEO Is Stepping Down as Customers Turn Away: What Happened and What’s Next
Big changes are coming to Target. After 11 years leading the company, Target’s CEO is stepping down as customers turn away from the once-popular brand. This news has shocked shoppers, investors, and retail experts.
So why is this happening? What went wrong at Target? And what should customers and business owners learn from this moment?
Let’s look at the full story—step by step—in a simple way.
Who Is Target’s CEO and Why Is He Leaving?
Brian Cornell has been Target’s CEO since 2014. He helped bring the store back to life when it was struggling. He updated the stores, added online shopping, and made Target cool again.
In 2019, he was even named “CEO of the Year” by CNN Business for making Target strong during tough times.
But now, after more than a decade, Cornell is stepping down. He will leave his role as CEO on February 1, 2026, though he’ll stay on as executive chairman.
The reason? Target’s sales are down. Customers are shopping less, and many say they don’t feel connected to the brand anymore. The company needs a fresh start.
Who’s Replacing Him?
Target picked someone from inside the company to take over—Michael Fiddelke, the current Chief Operating Officer.
Fiddelke started as an intern at Target 20 years ago. Now, he’s moving into the top job. Some people think this is a safe choice. Others say Target needed an outsider with new ideas.
One expert, Neil Saunders from GlobalData Retail, said:
“This doesn’t fix the problems. Target needs new thinking. It has lost touch with what shoppers want.”
Why Are Customers Turning Away from Target?
This is a big question. And the answer has many parts. Let’s break them down.
1. Fewer People Are Shopping for Fun
Target is known for fun things like cute clothes, home décor, and trendier items. But lately, people are spending more money on basic needs like food and gas—and less on fun stuff.
In fact, more than 50% of Target’s products are non-essential, or what experts call “discretionary items.”
Compare that to Walmart, where about half of all sales come from groceries.
When times get hard, people go to stores that help them save on basics. That means Walmart, Costco, and Amazon are doing better than Target.
2. Sales Are Falling, and Investors Are Worried
Target’s sales have gone down for three straight quarters. That means fewer people are shopping—and buying less when they do.
In 2025, Target’s stock was one of the worst-performing in the S&P 500.
Just recently, Target’s stock dropped 10% after another bad sales report.
Investors are nervous. They don’t think the company has a clear plan.
3. The DEI Backlash Hurt Brand Loyalty
In 2025, Target made a big change—it cut back on its DEI (Diversity, Equity, and Inclusion) programs.
Many customers, especially younger and more progressive ones, were shocked and upset. The family of Target’s founder even called it a “betrayal.”
Target had once been a leader in inclusion. Now, some say it’s turning its back on those values.
As a result, brand trust dropped, and many loyal shoppers stopped supporting the company.
4. Supply Chain Problems and Tariffs
Target also faced trouble with importing products. About 50% of Target’s products come from overseas, compared to only 33% for Walmart.
This matters because tariffs (taxes on imports) make things more expensive. Target has to raise prices just to break even.
According to Bank of America analyst Robert Ohmes, Target may need to raise prices twice as much as Walmart due to tariffs.
This hurts sales and frustrates shoppers.
5. Too Much Inventory, Not Enough Demand
In 2022, Target bought too much stuff—things like treadmills, TVs, and furniture. But after the pandemic, people stopped buying those items.
That meant Target had too much inventory and had to mark down prices, losing money in the process.
The timing couldn’t have been worse. Inflation was rising, and people had less money to spend.
6. Pride Month Backlash Added Fuel to the Fire
In 2023, Target faced angry online attacks for selling Pride-themed products. Some of the items were for transgender people, and misinformation spread saying they were being sold to kids (they weren’t).
Target pulled some items after threats to employees—but this made things worse.
Supporters of LGBTQ+ rights felt betrayed. Others thought Target was giving in to pressure. No one was happy.
The result? A big sales drop and lawsuits from conservative groups.
Can Target Come Back?
Michael Fiddelke, the new CEO, says yes.
He wants to:
- Bring back fun and trendy items
- Make stores more exciting
- Use new tech to improve shopping
- Cut costs where possible
- Avoid raising prices unless necessary
One of his new ideas is called “Fun 101.” It’s a plan to focus on fresh electronics, home goods, and seasonal trends.
But will it work? Analysts are split.
Some say Target can bounce back with the right moves. Others think it needs a complete reboot to survive.
What This Means for Shoppers
If you’re a Target shopper, expect more changes soon. Stores may:
- Look different inside
- Offer new kinds of products
- Raise or lower prices depending on tariffs
- Focus more on in-store experiences
The goal is to win back customers and bring energy back to the brand.
Lessons for Business Owners
Target’s story isn’t just about retail. It’s a warning for all businesses—especially those that rely on customer trust.
Here are 3 key takeaways:
| Lesson | Why It Matters |
| Know your customer | When brands stop listening, they lose loyalty |
| Be careful with big shifts | DEI cuts and pricing issues hurt Target’s image |
| Adapt with a plan | Trendy ideas only work when backed by smart strategy |
If you’re a local business owner, it’s important to learn from big companies—but also avoid their mistakes.
That’s why having trusted tech partners is so important.
Milwaukee Businesses: Don’t Let Tech Troubles Slow You Down
When times get tough, your business needs tools that work, security you trust, and support that shows up.
That’s where we come in.
Redbird Technology Solutions, based in Milwaukee, Wisconsin, has helped businesses for over 25 years. We don’t just fix computers—we help you grow smarter and safer.
We offer:
- Network setup and protection
- IT planning and security
- Hardware recommendations that fit your budget
- Camera systems and on-site support
- Fast, friendly service from local experts
Whether you’re launching something new or looking to improve your tech setup, we’re here to help.
Need a hand? Let’s talk.
Contact Redbird Technology Solutions today for a FREE consultation.
Let’s build something great together—right here in Milwaukee.
Final Thoughts
Target’s CEO is stepping down as customers turn away, and it marks a big turning point for one of America’s favorite stores.
The last few years have shown how quickly things can change. Strong leadership, clear values, and real customer focus are more important than ever.
If you’re a shopper, this is your chance to speak up with your wallet. If you’re a business owner, this is your reminder to stay flexible, stay focused, and lean on trusted local partners when it matters most.