When Your Target Market Walks Out Empty-Handed
By Dr. Mary Kelly, PhD Economist, Leadership Strategist.
I almost bought Target stock.
I have always liked Target stores.
I fit their demographic, and I should be an easy sale.
Yet, after visiting a local Target store this week, I left without buying a single thing or their stock. The irony struck me. I am their target audience, but they didn’t capture me. And that’s the critical reminder for every business: being close to your market isn’t the same as connecting with it.
That disconnect may be part of the larger reason why Target’s longtime CEO, Brian Cornell, is stepping down.
The Gap Between Market and Message
Target, like many successful companies, invests millions in identifying who their market is. They know the age range, income level, family size, shopping behaviors, and even buying moods of customers like me. The problem is not with their data. The problem is with the delivery.
I walked into the store expecting Target’s signature “cheap chic” experience—products that are practical, stylish, and at a competitive price point. Instead, I found unorganized shelves, mismatched merchandising, and nothing that felt necessary enough to put in my cart. The store technically had products for me, but they didn’t speak to me.
And that’s where many businesses miss the mark. They know their audience, but they forget that knowing isn’t enough. You must deliver an experience that resonates at the emotional level.
Target’s Leadership Challenge
For Target, this missed connection has translated into real numbers. Sales have slumped, with comparable sales declining in 8 of the past 10 quarters and net income dropping 21% in the most recent quarter. Once known for setting trends, Target has struggled with bland merchandising and underwhelming store experiences.
These are not just operational hiccups; they are signs of a deeper strategic disconnect, one that ultimately lands at the feet of leadership.
Why Is the CEO Stepping Down?
After 11 years at the helm, Brian Cornell announced he will step down as CEO in February 2026, moving into the role of executive chair of the board. His successor will be Michael Fiddelke, a 20-year Target veteran who currently serves as COO.
Cornell extended his tenure beyond the normal retirement age of 65 to stabilize the company, but in the end, declining sales, cultural backlash, and brand fatigue made leadership change inevitable.
Lessons for Businesses of All Sizes
Whether you’re a Fortune 500 retailer or a small business owner, the lessons are clear:
- Data Must Translate to Delivery. It’s not enough to know your market. You must create experiences that feel curated and relevant.
- Curate, Don’t Just Stock. Consumers don’t want clutter or confusion. They want ideas, inspiration, and connection.
- Relevance Is Dynamic. What resonated with customers last year may not resonate today. Audiences evolve, so must you. Keep updating!
- Leadership Must Steer the Experience. Strategy, culture, and customer connection are leadership’s job. When the audience walks away empty-handed, it’s a signal that the top needs to reset the vision and mission.
You can spend millions on branding, research, and advertising, but if your target customer walks into your business and leaves without a purchase, you’ve missed the mark. Multiply that by millions of similar experiences, and the result is declining sales, profit loss, and eventually, a leadership change.
Mr. Fiddelke has a huge challenge, and I am cheering for him to lead Target back to their target audience.
Exceptional insight!
…also loved the video summary
Thank you, Rick. I thought this could be a great reminder for all leaders!
Somehow the feedback loop at Target got foreshortened or was not prioritized. Curiosity wasn’t valued. The most important thing for a leader is to have those around you that tell you what you need to know and not what you want to hear.
David, that’s a great point! Thank you for mentioning that.