The Minneapolis-based company’s board of directors unanimously elected Michael Fiddelke, the company’s current chief operating officer, to succeed Cornell and become a member of its Board of Directors on Feb. 1, the company announced Wednesday. 

The news comes as Cornell, 66, wraps up the three-year commitment he made in 2022 to remain CEO.

That year, Target’s board scrapped its mandatory retirement age of 65, allowing him to stay on during a pivotal period for the company as it worked to revive traffic and growth. 

Over the past 20 years at Target, Fiddelke, 49 years old, has been credited with being instrumental in building many of the company’s core strengths, holding leadership roles across merchandising, finance, operations and human resources.

In his current position, Target said Fiddelke has overseen efforts that enabled exponential growth across the business, including investments to build and scale the company’s stores, supply chain, digital capabilities and team. He also spearheaded enterprise efforts to deliver more than $2 billion in efficiencies. 

“It is clear that Michael is the right leader to return Target to growth, refocus and accelerate the company’s strategy, and reestablish Target’s position as a leader in the highly dynamic and fast-moving retail environment,” Christine Leahy, lead independent director of Target’s Board of Directors, said. 

Target CEO Brian Cornell will step down next year. Andrew Schwartz / SplashNews.com

Leahy said Fiddelke’s tenure gives him unmatched enterprise insight and a foundation of strong team trust, noting that “what sets him apart is how he combines those strengths with a ‘fresh eyes’ mindset, challenging the status quo to evolve how the business operates, differentiates and delivers long-term value.”

In its latest fiscal quarter, the company reported $25.2 billion in sales, down just under 1% from a year ago.

The company blamed the dip on shoppers pulling back on merchandise, though that was partly balanced out by stronger non-merchandise sales, like services.

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Sales at stores open at least a year fell nearly 2%, with in-store sales dropping more than 3%. Online sales, however, grew a little over 4%. Overall, profit for the quarter came in at $1.3 billion, which was down about 19% from last year.

The company had already warned earlier this year that there would be year-over-year profit pressure in its first quarter relative to the remainder of the year, due in part to tariff uncertainty. 

The board unanimously elected COO Michael Fiddelke to succeed Cornell starting February 1. Target

In its latest fiscal quarter, the company reported $25.2 billion in sales, down just under 1% from a year ago. Getty Images

To try to get back to long-term profitable growth, the company announced in May that it had developed a new multi-year growth initiative, called Enterprise Acceleration Office, and made changes to its executive suite.  

The Enterprise Acceleration Office initiative will specifically help the company operate more nimbly, “creating conditions for speed, adaptability, innovation and resilience,” Cornell said. 

Target is maintaining its expectation of a low-single digit decline in sales for fiscal 2025, down from its previous forecast of net sales growth of about 1%. It expects adjusted earnings per share to be approximately $7 to $9 for fiscal 2025, down from its prior expectation of $8.80 to $9.80.

The post Target CEO Brian Cornell steps down after 10 years as retailer fights to reverse sliding sales appeared first on Our Story Insight.

The meeting, which was initiated by Target, follows recent decisions by the retailer to scale back DEI initiatives — a move that prompted backlash from civil rights organizations.

Though Sharpton himself has not yet called for an official boycott, he openly supports the consumer movements urging shoppers to avoid Target.

Target CEO Brian Cornell (pictured) is set to meet civil rights leader Rev. Al Sharpton this week in New York. Andrew Schwartz / SplashNews.com

“You can’t have an election come and all of a sudden, change your old positions,” Sharpton told CNBC.

“If an election determines your commitment to fairness then fine, you have a right to withdraw from us, but then we have a right to withdraw from you.”

Sharpton stated he is open to initiating a formal boycott if Target does not reaffirm its support and investment in the black community and black-owned businesses.

“I said, ‘If [Cornell] wants to have a candid meeting, we’ll meet,’” Sharpton said. “I want to first hear what he has to say.”

Target confirmed the planned meeting between Cornell and Sharpton but declined further comment.

Sharpton is supporting boycotts of Target — though he himself has not explicitly endorsed a boycott. Matthew McDermott

The controversy arose when Target announced in January it would terminate its three-year DEI targets and cease providing company reports to external groups such as the Human Rights Campaign’s Corporate Equity Index.

The company also ended certain measures aimed at increasing shelf space for products from Black and minority-owned businesses.

Following these announcements, Target experienced declining store visits for 10 consecutive weeks starting in late January, as recorded by data firm Placer.ai.

Before this period, store traffic had shown consistent year-over-year increases. Analysts have warned, however, that the drop in the number of shoppers could also be related to larger macroeconomic trends such as high inflation.

While this metric does not directly reflect overall sales, the decline coincided with public outcry over the company’s decision.

Rev. Jamal Bryant, an Atlanta-based pastor, has been another vocal critic of Target’s DEI policy shift.

Bryant initiated a “fast” from shopping at Target during Lent as a demonstration of black consumer influence, signaling plans to announce further actions related to the boycott soon.

Target’s policy changes mirror broader corporate caution around DEI programs, as companies including Walmart, McDonald’s and Tractor Supply have similarly scaled back their initiatives — partly due to pressures from conservative activists and politicians.

The meeting, which was initiated by Target, follows recent decisions by the retailer to scale back DEI initiatives. Christopher Sadowski

In contrast, Costco notably maintained its DEI initiatives, successfully resisting conservative shareholder proposals aimed at weakening these policies.

Sharpton’s National Action Network (NAN) recently engaged with other corporations facing similar scrutiny.

He met PepsiCo executives after the beverage giant ended its DEI targets.

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Though details of commitments from PepsiCo remain unclear, Sharpton acknowledged the significance of CEO Ramon Laguarta personally attending the discussions.

Sharpton’s meetings represent a significant counter-effort against conservative activists, like Robby Starbuck, who have aggressively targeted corporate DEI policies.

Starbuck’s campaigns have notably succeeded in pressuring several major corporations into reconsidering or eliminating diversity initiatives.

Sharpton’s National Action Network (NAN) recently met with PepsiCo executives over the company’s withdrawal of its DEI initiatives. REUTERS

During their upcoming meeting, Sharpton plans to question Cornell on Target’s reversal from commitments made following George Floyd’s murder in Minneapolis, Target’s hometown.

Cornell previously expressed deep personal and corporate commitment in the wake of Floyd’s killing, saying it profoundly impacted him.

“That could have been one of my Target team members,” he remarked in 2021.

Sharpton stressed the necessity of accountability from companies that pledged support during critical moments of civil unrest.

“You made commitments based on the George Floyd movement… what changed?” he asked.

“Are you trying to say everything’s fine now because the election changed? That’s insulting to us.”

The post Target CEO Brian Cornell to meet Rev. Al Sharpton following black boycott threat over DEI rollback appeared first on Our Story Insight.