Target Corp (NYSE:TGT) chief executive Brian Cornell will leave the US retailer after 11 years, handing the reins to long-time insider Michael Fiddelke.
Cornell, who took over in 2014 and led a major turnaround including store remodels and e-commerce expansion, will step aside on February 1, but will remain executive chairman.
The transition comes as Target struggles with falling sales, marking a third straight quarterly decline, and a 10% drop in its share price on Wednesday.
Analysts say the company has lost ground to rivals such as Walmart, Amazon and Costco, with shoppers cutting back on discretionary items like clothing and home goods.
Target has also faced controversy after rolling back diversity programmes this year, a move that drew criticism from progressive customers and even members of its founding family.
Some analysts questioned the choice of an internal successor, warning the retailer risks sticking with a strategy that has failed to deliver growth.