Target’s New CEO Plans To Rebuild Trust After DEI Fallout

Target’s new CEO, Michael Fiddelke, told employees in Minneapolis on Feb. 4, 2026, that he plans to rebuild customer and employee trust after the retailer’s pullback from DEI triggered backlash.

Reporting from Bloomberg News shows Fiddelke used his first town hall to concede that Target “lost” trust and that leadership failed to communicate clearly in the moment. CNN reports that the credibility gap was tied to the dismantling of DEI commitments, including a program that helped Black-owned businesses secure shelf placement, plus the removal of minority hiring goals and the end of an executive racial justice committee.

Consumer and investor response imposed direct costs

AFROTECH previously reported a consumer boycott that drove foot-traffic declines for at least eight consecutive weeks. Forbes reported first-quarter sales of $23.8 billion, down from $24.5 billion a year earlier. Forbes also reported that investors lost $12 billion after Target scaled back its DEI efforts.

Leadership transition followed the policy reversal

Forbes reported that former CEO Brian Cornell announced in August 2025 that he would step down after 11 years. Target installed Fiddelke on Feb. 1, 2026.

Target’s own company article says Fiddelke plans to “invest where it matters most” across stores, digital experiences, and people. He also wrote that he will prioritize merchandising authority, guest experience, technology acceleration, and strengthening teams and communities. Those priorities read as an operating reset designed to stabilize revenue and labor sentiment after a governance decision produced market penalties.