It is finally official. After months of quiet speculation in the Minneapolis corporate corridors, Brian Cornell is actually leaving the top spot at Target.
The news hit the wire late last year, but as of right now in January 2026, we are just days away from the handoff. On February 1, 2026, Cornell will formally vacate the CEO office. He isn't disappearing entirely—he’s sliding into the Executive Chair role—but the daily grind of running a $100 billion retail giant is moving to someone else.
His successor is Michael Fiddelke.
If you haven't heard the name, you aren't alone. Fiddelke is the ultimate insider. He started as a finance intern back in 2003 and worked his way up to CFO and eventually COO. It is a safe pick. Maybe too safe? That is what Wall Street is currently arguing about.
Why the Target CEO Brian Cornell stepping down news feels different
Usually, when a CEO of a Fortune 50 company leaves after eleven years, it’s a victory lap. And to be fair, Cornell has plenty to brag about. When he took over in 2014, Target was a mess. They had just botched their Canadian expansion and were reeling from a massive data breach.
Cornell fixed it. He leaned into the "stores as hubs" model, which basically turned Target locations into mini-warehouses for online orders. It was brilliant. Then the pandemic happened, and Target’s revenue absolutely exploded as everyone stayed home and bought throw pillows and loungewear.
But things changed fast.
Lately, the "Tar-zhay" magic has felt a bit thin. Sales have been sluggish for nearly two years. Inflation hit the core Target shopper hard, forcing them to choose between a cute $25 lamp and actual groceries at Walmart.
The transition timeline and the 2022 "Contract Twist"
We should have seen this coming back in 2022. Target’s board actually scrapped their mandatory retirement age of 65 just to keep Cornell around for another three years. That extension ends now.
- August 2025: The public announcement of the succession plan.
- Q4 2025: Cornell oversees his final holiday season as the boss.
- February 1, 2026: Michael Fiddelke officially takes the reins as CEO.
- Late 2026: Cornell is expected to transition out of the Executive Chair role as Fiddelke settles in.
Honestly, the timing is tricky. Target is currently grappling with what analysts call a "discretionary recession." People are still spending, but they aren't buying the high-margin stuff that Target loves to sell. They’re buying milk, not $80 cardigans.
What Michael Fiddelke inherits (The Good and the Ugly)
Fiddelke isn't walking into a burning building, but there are definitely some smoldering embers.
Target recently announced they wouldn't be renewing their massive partnership with Ulta Beauty, which is set to wind down by August 2026. That is a huge blow to foot traffic. To counter it, Target is betting on 45 of its own internal beauty brands. It's a gamble. Will people come for "Target Beauty" the same way they came for Ulta? Maybe. But it’s not a sure thing.
Then there’s the "shrink" issue. While organized retail crime has leveled off a bit, those locked plexiglass cases are driving customers crazy. If you have to wait ten minutes for a staff member to unlock a bottle of Tide, you're probably just going to order it from Amazon next time. Fiddelke has to find a way to secure the store without making it feel like a prison.
The numbers are pretty sobering:
- Target stock is down significantly from its 2021 highs of nearly $268.
- Comparable sales have been dipping or flat for several consecutive quarters.
- Operating margins are under pressure from higher markdown rates.
Cornell did the heavy lifting of modernizing the tech and the supply chain. Fiddelke’s job is more about surgical precision. He needs to figure out how to win back the suburban mom who started shopping at Aldi and Walmart during the 2024-2025 inflation spike.
The "Culture War" baggage
You can't talk about Target CEO Brian Cornell stepping down without mentioning the elephant in the room. The last few years were rough on the brand’s image. Between the 2023 Pride merchandise backlash and subsequent DEI rollbacks, Target managed to upset people on both sides of the political aisle.
Cornell handled it as best as he could, but it left the brand feeling a bit "fragile," as some analysts put it. Fiddelke is a finance guy at heart. He’s methodical. The hope is that he can get Target back to focusing on "Cheap Chic" and leave the political crossfire behind.
Practical insights for investors and shoppers
If you're watching Target (TGT) right now, here is the reality of the situation:
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The Bull Case: The stock is trading at a historically low P/E ratio. If Fiddelke can reignite sales, there is a lot of room for growth. The digital infrastructure is already world-class, and the "Target Circle 360" membership program has over 13 million members.
The Bear Case: Target is stuck in the middle. They don't have the scale of Walmart or the speed of Amazon. If they lose their "style" edge, they just become a more expensive version of a discount store.
The move to wholesale the Cat & Jack brand to Hudson’s Bay in Canada (a late 2025 move) suggests the company is looking for new ways to grow without opening massive, expensive stores. It's a shift toward being a "brand house" rather than just a "store."
What happens next at the Bullseye?
Expect a "quiet" first 100 days from Fiddelke. He has been in the room for every major decision for the last decade, so don't look for a radical departure from Cornell’s strategy. Instead, look for a massive push into AI-driven inventory management and probably a few more high-profile designer collaborations to get the "cool" factor back.
The Cornell era was about survival and then explosion. The Fiddelke era will be about efficiency and finding a reason for Target to exist in a world where everyone is obsessed with value.
Actionable Steps for Stakeholders:
- For Investors: Watch the Q1 2026 earnings call closely. This will be Fiddelke’s first time leading the call as CEO, and his tone will signal whether Target is staying the course or pivoting.
- For Retail Workers: Internal memos suggest Fiddelke is a big proponent of "Enterprise Acceleration"—basically cutting through red tape. Expect changes in how store tasks are prioritized.
- For Shoppers: Keep an eye on the "Target Circle" app. To offset the Ulta exit, Target is likely to ramp up personalized discounts to keep you from wandering over to Sephora or Kohl's.
Brian Cornell leaves a legacy of turning a fading 20th-century retailer into a 21st-century powerhouse. Now, the intern-turned-CEO has to prove that an insider is actually the "fresh eyes" the board claims he is.