The CEO of Target, Brian Cornell, is set to step down as the retail giant grapples with significant challenges, including a customer boycott linked to its recent decisions regarding diversity, equity, and inclusion (DEI) initiatives. Cornell, who has played a pivotal role in revitalizing the company since he took the helm in 2014, will be succeeded next year by the current Chief Operating Officer, as announced by the company on Wednesday.
Despite his efforts to re-energize Target, Cornell has faced mounting difficulties in boosting sales, particularly in the wake of the Covid pandemic. The retailer, which operates nearly 2,000 stores across the United States, reported a significant decline in sales during the first quarter of 2025, falling more than analysts had anticipated. Additionally, Target warned that sales are expected to continue declining throughout the year, primarily due to shifting consumer spending habits amid economic uncertainty and concerns about tariffs.
Target has acknowledged that ongoing customer boycotts have further exacerbated its sales challenges. Earlier this year, the company faced backlash after scaling back many of its DEI initiatives in January, following criticism from conservative activists and political figures. This decision sparked a significant reaction, leading to a poll in February that indicated a notable shift in shopping habits among Americans, many of whom opted to avoid stores perceived to be aligning with the Trump administration's policies.
In July, reports surfaced indicating that numerous Black Americans were participating in boycotts against major retailers, including Target and Amazon. This movement gained momentum earlier in the year when over 250,000 individuals signed a pledge to boycott Target following a call to action by Rev. Jamal Bryant, pastor of New Birth Baptist Church in Georgia. His 40-day “Target Fast” coincided with the beginning of the Lenten season, further amplifying the company's challenges.
Target's financial struggles have become increasingly evident, with the company reporting a staggering 21% drop in net income during the second quarter of this year. Sales figures reflected a downward trend, with a 1.9% decline in comparable sales, which include established physical stores and online channels. Notably, Target has experienced flat or declining comparable sales in eight out of the last ten quarters, highlighting the ongoing difficulties it faces in regaining customer loyalty and improving its financial performance.
As Target prepares for a leadership transition, the retail giant must navigate a complex landscape of consumer sentiment, economic pressures, and evolving retail dynamics. The future of the company will depend on its ability to address these multifaceted challenges while seeking to restore trust and engagement with its customer base.
