As the retailer revealed on Wednesday that it is eliminating its 65-year-old retirement age, Target CEO Brian Cornell has decided to continue in his position for around three more years
According to Monica Lozano, the board of directors’ lead independent director, “We heartily endorse his commitment and his continuing leadership, especially given his track record and the company’s solid financial performance during his term.
63-year-old Cornell has served as Target’s CEO since 2014. Under his direction, the business has grown its clientele and strengthened its standing as a discounter by offering distinctive and cutting-edge goods. But more recently, Target has struggled with significant changes in consumer behaviour, falling sales, and a backlog of unsold goods.
In an effort to get rid of the surplus inventory with steep discounts, the company dropped its prediction twice, and as a result, its quarterly earnings fell by about 90% in the three months ending July 30.
The company’s stock has decreased by around 29% so far this year.
Wednesday also saw Target announce the retirement of Arthur Valdez, the company’s chief supply chain and logistics officer. He will be succeeded by Gretchen McCarthy, senior vice president of global inventory management at Target and a veteran of 18 years. As Valdez will continue to work in an advisory capacity through April, she will start reporting to Target’s COO, John Mulligan, right away.
Target has introduced many private brands under Cornell’s direction, including ones for groceries, activewear, and home furnishings. It formed alliances with well-known national brands, converting a portion of its stores into mini-stores for Disney, Levi Strauss, and most recently, Ulta Beauty. Additionally, it introduced curbside pickup for online orders, opened up e-commerce choices, and converted the backs of its stores into fulfilment centres, which take care of the vast majority of online sales.
During the Covid epidemic, those expenditures paid off as Target continued to operate as a necessary business and attracted customers to its website and physical locations.
Before joining the company, Cornell served as CEO of Walmart-owned Sam’s Club, PepsiCo Americas Foods, and Michaels Stores.