Target, once celebrated as the stylish yet accessible “Tar-zhay” of American retail, now finds itself in the crossfire of the culture wars. CEO Brian Cornell is stepping down after a decade, handing over to COO Michael Fiddelke in 2026. The shift follows sliding sales, a 21% net income drop in Q2, and intensifying boycotts after Target rolled back Pride and DEI initiatives.
But Cornell isn’t leaving. He’s moving upstairs to Executive Chair - a role that is often more senior, better compensated, and more influential than CEO. Which raises a critical question: is this a meaningful reset, or a token gesture designed to appease critics while keeping the same leadership DNA intact?
đź“Š Supporting Stats
21% drop in net income in Q2 2025, with comparable sales down 1.9% - the 8th dip in the past 10 quarters (Target earnings report).
Over 250,000 pledges to boycott Target this year after Rev. Jamal Bryant’s “Target Fast” campaign.
Target’s decision to roll back $2 billion in DEI commitments sparked swift backlash - led by Black communities.
$12.4 billion wiped from Target’s market value.
Foot traffic dropped nearly 8%.
Black-owned vendors felt the shock: some lost up to 30% in earnings, while others gained visibility as communities redirected spend.
Polling shows many Black Americans have abandoned stores scaling back DEI policies (Guardian).
🧠Decision: Did It Work?
No. Commercially and culturally, the retreat failed. Target attempted to defuse conservative criticism by scaling back DEI and Pride visibility. Instead, it alienated its core base - diverse, urban, progressive-leaning shoppers - while failing to gain loyalty from those it sought to appease.
And the leadership shuffle doesn’t inspire confidence. Elevating Cornell to Executive Chair looks less like accountability and more like optics. A brand in cultural crisis needs genuine change, not symbolic reshuffles.
đź“Ś Key Takeouts
What happened: Cornell steps down as CEO but remains Executive Chair - keeping influence as sales and cultural credibility slip.
What worked: Very little - short-term appeasement didn’t stabilise the brand.
What didn’t land: Retreating on Pride and DEI damaged trust with core demographics while failing to win new loyalty.
Signal for brands: Leadership shifts that look cosmetic will be read as such. In a cultural crisis, audiences want proof of principle, not just new titles at the top.
Economic lesson: Black consumer power is market power. Boycotts don’t just trend - they reshape balance sheets.
đź”® What We Can Expect Next
Michael Fiddelke takes over as CEO in 2026, but Cornell remains in the boardroom. That means Target’s challenge isn’t just operational; it’s cultural. Unless the company makes visible, credible commitments to inclusion and accountability, the new leadership structure may be read as continuity disguised as change. In today’s market, neutrality is no longer an option - and neither is symbolism without substance.