Target CEO Brian Cornell is stepping down. His replacement is a company insider who joined as an intern.

Target has announced it will replace longtime CEO Brian Cornell with a company insider who joined as an intern 23 years ago.

The discount department store chain said Michael Fiddelke, chief operating officer and former chief finance officer, will take over on February 1 next year. He has been with the company since first joining as an intern in 2003. He has worked across merchandising, finance, operations, and human resources, the company said.

Cornell has been in charge since 2014. He will become executive chair of the board of directors.

The appointment comes as the retailer has suffered since the pandemic as more customers have shifted to budget alternatives. Target had a tough first quarter with falling sales and a decrease in store traffic after it decided to roll back its DEI initiatives at the start of the year.

Fiddelke said in a statement he wanted to “refocus our strategy and build on the assets and capabilities that have made Target a beloved destination for incredible products and a one-of-a-kind shopping experience.”

“And to be clear, we have work to do to reach our full potential,” he added.

Target announced Cornell’s departure as it reported its second-quarter earnings results, which showed sales were $25.2 billion, almost 1% down year-on-year, but above Wall Street expectations of $24.93 billion.

The company’s stocks were down over 8% in premarket trading as of 7.16 a.m. Wednesday.

The Minneapolis-headquartered company maintained its expectation of a low-single-digit decline in sales for 2025.

This is a developing story. Check back for updates.

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