Target has faced its most turbulent period in decades, with shares losing over 65% of their value since the company’s peak valuation in 2021, representing a loss of nearly $90 billion. This decline comes during a period when the broader stock market has largely risen, with rival Walmart roughly doubling in value over the same timeframe. So far in 2025, Target has ranked among the 20 worst-performing stocks in the S&P 500, dropping more than a third of its value since the start of the year. The company’s sales have remained mostly flat in recent years, and 2023 marked its first comparable sales decline since 2016.
Most recently, Target announced it would lay off 1,800 corporate employees, about 8% of its corporate workforce. The company’s CEO of over a decade, Brian Cornell, has resigned, and his successor has acknowledged the company is not realizing its full potential, fueling speculation that Target is in unfamiliar territory. Brian Cornell was hired as CEO in 2013, a year marked by rising online competition, a failed expansion into Canada, and a massive data breach that exposed the credit card information of 40 million customers during the holiday season. His strategy centered on investing billions in store renovations, launching private labels, and using physical stores as fulfillment hubs for online orders.
The approach drew praise initially, with Target operating in all 50 states by 2018 and being named business CEO of the year by CNN in 2019. The pandemic proved beneficial for Target, as customers spent heavily on home goods while spending more time at home. In 2021, the company surpassed $100 billion in sales for the first time, the same year it reached its peak stock market valuation. In 2022, Target removed its policy requiring the CEO to retire at 65 so that the then-63-year-old Cornell could sign a three-year contract extension.
Those years have not matched earlier successes, with some of his strategies backfiring. Many have expressed the view that Cornell should be replaced by an outsider with fresh ideas. Instead, his replacement was announced as Michael Fiddelke, who served as chief operating officer and chief financial officer, and who began as an intern with the company over 20 years ago. The stock price fell on the day of the announcement, reflecting investor doubts about his ability to reverse the current trends.
A major factor in Target’s struggles is its reliance on discretionary products, the non-essential items people are more likely to buy when they have extra money. Economic pressures like inflation and interest rates have reduced discretionary spending, hitting Target harder than competitors that rely more on groceries. Walmart, for example, has groceries accounting for about 60% of its business, compared to Target’s roughly 25%, and people tend to continue buying groceries even when money is tight. Recent tariffs have compounded the problem, as Target imports a higher percentage of its merchandise from foreign countries than Walmart, partly because groceries are typically sourced domestically.
Target’s customers spend a significant portion of their money at the store on items they do not strictly need, which has proved problematic in the current economy. Target’s diversity, equity, and inclusion initiatives have also been a source of controversy. In 2020, following the murder of George Floyd in Minneapolis, where Target’s headquarters is located, Cornell said the event motivated him to launch DEI programs, including hiring goals for minority employees and a promise to spend more than $2 billion with Black-owned businesses by 2025. In early 2025, Target announced it would end most of these initiatives, just days after President Donald Trump was sworn into office.
The decision drew significant backlash, including an ongoing boycott. Target has acknowledged the decision has hurt sales, and two daughters of the company’s co-founder have spoken out against it, saying they were shocked and dismayed. Other major companies, including Walmart, have ended similar initiatives without receiving nearly as much backlash, possibly because Target has a more left-leaning customer base that was more vocal about these efforts. In 2023, Target also faced controversy over LGBTQ-themed merchandise sold during Pride Month.
Concerns about employee safety were fueled in part by a false social media rumor that the company was marketing bathing suits designed for transgender people to children. Target eventually removed most of these displays, which upset many people. These sensitive issues have left the company trying to please everyone while upsetting many in the process. Customer experience is another area of concern.
Target has long had a reputation as a fun place to shop, with people affectionately referring to it as “Tar-jay” for feeling fancy for a discount store. Lately, some customers have questioned whether it still lives up to that reputation, complaining that merchandise is not as trendy or attractive as it used to be, possibly due to a greater focus on private label brands and post-pandemic inventory issues. Target has attempted to address these concerns through partnerships with Kate Spade and Champion, both of which have attracted customers. However, its partnership with Ulta is set to end in August 2026, which could hurt sales moving forward.
That collaboration had established smaller Ulta stores within Target locations, drawing in customers much like Kohl’s partnership with Sephora. Other complaints include messy stores and unpleasant employees, which some attribute to Target’s system where 96% of orders are filled at stores rather than warehouses, compared to Walmart’s roughly half-and-half split. Employees may be too busy filling orders to stock shelves, help customers, or keep stores clean. Target has been experimenting to determine which stores are better suited for fulfilling online orders, with the goal of improving the guest experience without sacrificing store conditions.
Target is at a critical juncture, with a new CEO and recent changes that could lead to recovery or further decline. The core issue is that Target is not as well-liked as it used to be, giving customers more reason to switch to competitors. The company is working to address customer complaints and restore confidence, but the path forward remains uncertain.