TGT Stock Plummets 10%: CEO’s Shocking Exit

NEW YORK — In a dramatic response to prolonged slumping sales, Target Corporation announced that longtime CEO Brian Cornell is stepping down, sending TGT stock plummeting 10% in premarket trading.

The leadership shake-up, effective February 1, 2026, comes as the big-box retailer reported its third consecutive quarter of declining sales, cementing its position as one of the worst-performing stocks in the S&P 500 this year. Cornell, who has led the company for 11 years, will be replaced by current Chief Operating Officer Michael Fiddelke, a 20-year company veteran who started as an intern. Cornell will remain as executive chairman.

This transition, however, is being viewed by many analysts as too little, too late, failing to address the deep-seated challenges plaguing the Minneapolis-based chain.

A Legacy of Highs and Lows – TGT Stock

Brian Cornell’s tenure was a tale of two eras. Hired in 2014, he was hailed as a savior. He spearheaded a massive revitalization, remodeling stores and building a formidable online business to compete with Amazon. By 2019, his success in turning the company around earned him recognition as CNN Business’s CEO of the Year.

The pandemic boom of 2020 and 2021 further supercharged Target, as shoppers flooded stores for everything from essentials to home office supplies. The retailer became a darling of Wall Street.

But the cracks began to show in 2022. The company severely misjudged post-pandemic demand, leading to a massive glut of unsold inventory just as decades-high inflation began squeezing its core customers. Shoppers abruptly stopped buying discretionary goods—Target’s specialty—and shifted spending toward essentials, a category where rivals like Walmart and Costco hold a dominant advantage.

A Perfect Storm of Controversy and Competition

The last year has been particularly brutal. Earlier in 2025, Target’s decision to retreat from some of its long-standing Diversity, Equity, and Inclusion (DEI) initiatives sparked intense backlash. The move alienated its progressive customer base, with critics, including the daughters of a Target co-founder, calling it “a betrayal.” The company itself acknowledged the policy reversal hurt sales.

This controversy, combined with a broader consumer slowdown, has created a perfect storm. As Bank of America analyst Robert Ohmes noted, Target is uniquely vulnerable. More than half of its merchandise is discretionary, and it imports about 50% of its goods, making it more susceptible to tariffs than competitors. This forces Target to raise prices at almost double the rate of Walmart to maintain margins, further driving away cost-conscious shoppers.

Is an Insider the Right Answer?

The board’s choice to promote from within is facing sharp criticism. Neil Saunders, an analyst at GlobalData Retail, called it a missed opportunity.

“This an internal appointment that does not necessarily remedy the problems of entrenched groupthink and the inward-looking mindset that have plagued Target for years,” Saunders said in a client note. “Target, which used to be very attuned to consumer demand, has lost its grip on delivering for the American shopper.”

The fundamental question for investors is whether Fiddelke can execute the drastic strategic shift many analysts believe is necessary. The new CEO must navigate intense competition, recalibrate its merchandise mix, and rebuild trust with a fractured customer base.

With TGT stock under severe pressure and the company’s long-term outlook described as “deteriorating” by some on Wall Street, the path to recovery appears steep. The market’s sharp negative reaction to the news suggests investors are bracing for more pain ahead.