Omnichannel

Target CEO commits to 3 more years at helm

Photo by istock.com

September 7, 2022

Target CEO Brian Cornell will continue in his role for the next three years while Arthur Valdez, EVP and chief supply chain and logistics leader, has retired from the retailer.

Valdez is being replaced by Gretchen McCarthy, current SVP of global inventory management, according to a press release. An 18-year Target veteran, she has held numerous leadership positions across the company.

"In discussions about the company's longer term plans, it was important to us as a board to assure our stakeholders that Brian intends to stay in his role beyond the traditional retirement age of 65. We enthusiastically support his commitment and his continued leadership, especially considering his track record and the company's strong financial performance during his tenure," Monica Lozano, lead independent director of Target's board of directors, said in the release. "Since joining Target in 2014, Brian has worked to transform Target into an omnichannel leader by driving a guest-centric, purpose-driven strategy. The board is pleased that Brian has committed to continue leading Target's strategy and driving its multi-year, long-range plan alongside his talented leadership team."

The retailer had had a retirement policy in place which typically required CEOs to retire at the age of 65. The board has eliminated that policy.

The news comes a month after the retailer announced it has opened three sort centers to reduce delivery costs and to drive fast delivery, according to a CNBC report, and plans to open nine nationwide. The first hub is open in the retailer's hometown city of Minneapolis. Three more should be up and operating by the start of 2023.

"Our goal is meet the guest where they are, when they want, how they want," Chief Operating Officer John Mulligan told CNBC. "And so if they do want us to ship something to their home, we want to make that as efficient as possible."