Target’s Chief Executive Officer Brian Cornell is resigning from his position amid ongoing challenges at the retail giant as it tries to recover from a customer boycott and financial losses. The company announced in January that it was reducing its diversity, equity, and inclusion (DEI) initiatives, which triggered the boycott. Cornell, who will stay on as the company’s executive chairman, is set to be succeeded next year by Chief Operating Officer Michael Fiddelke, Target announced on Wednesday. Since taking over as CEO in 2014, Cornell initially helped revitalize Target but has struggled to boost sales in a more competitive retail landscape post-pandemic. Some analysts, however, have expressed doubts about the company’s new CEO choice, criticizing its board for selecting an insider involved in shaping Target’s current strategy. “[This is] an internal appointment that does not necessarily fix the issues of entrenched groupthink and a closed-minded approach that have hurt Target for years,” Neil Saunders, an analyst at GlobalData Retail, said in a client note. Saunders added that the company, “which used to be very attuned to consumer demand, has lost its grip on meeting the needs of the American shopper." Sales at the retailer, which operates nearly 2,000 stores across the US, declined more than expected in the first quarter of 2025. Earlier this year, the retailer warned that sales would continue to fall for the rest of the year due to consumers reducing their spending because of economic concerns and tariffs.