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Target CEO Brian Cornell will step down on February 1, 2026, ending his 11-year run as the head of the retail giant.

The announcement comes amid slumping sales, public backlash, and pressure from investors who want the company to take a new direction.

Target's board has chosen Michael Fiddelke, the company's current Chief Operating Officer, to take over as CEO.

Fiddelke has worked at Target for 20 years, starting as an intern and holding several leadership roles. He was selected from a pool of internal and external candidates.

"We must improve. We are not realizing our full potential right now," Fiddelke told analysts during a call on Wednesday.

He plans to focus on updating merchandise, making stores more inviting, and using more technology to attract shoppers.

According to AP, Target has nearly 1,980 stores across the US, but has struggled to keep its customers in recent years.

The company reported its third straight quarter of falling sales this week, and its stock dropped over 10% in early trading.

Cornell, who will remain as executive chairman, was praised for turning the company around in the mid-2010s, especially during the early days of the pandemic.

However, the last few years have been much tougher. Inflation, tariffs, and fewer shoppers buying home goods and clothes have hit the company hard.

Target Faces Backlash Over DEI Cuts as Boycotts Spread

Target's problems have been made worse by controversy over its decision to cut back on diversity and inclusion programs earlier this year.

The move sparked online boycotts and strong criticism from both customers and even members of the founding Dayton family.

"This felt like a betrayal," said Rev. Jamal Bryant, who helped lead a boycott after Target scaled back its DEI policies. "People started driving extra miles to shop elsewhere."

Industry experts were surprised that Target chose another insider instead of bringing in a new voice from outside. Some believe the decision may not be bold enough to fix what's broken.

"Target has lost its connection with the American shopper," said Neil Saunders, a retail analyst. "The same team that helped create the current problems is now being asked to solve them."

Fiddelke says he's ready to face the challenge. One of his upcoming plans, called "Fun 101," aims to bring popular new items into stores and improve the shopping experience, CNN reported.

Still, some investors remain worried. "Target's long-term outlook is deteriorating," said Bank of America analyst Robert Ohmes. "It's falling behind."

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