Target Announces CEO to Stay on, Logistics Head to Retire
Target has announced that its CEO will stay on for another three years and that it has named a replacement for its retiring logistics head.
CEO Brian Cornell will remain with the company beyond the age of 65, as Target’s board of directors eliminated the company’s previous policy that required retirement at that age, according to a Wednesday (Sept. 7) press release.
“We enthusiastically support his commitment and his continued leadership, especially considering his track record and the company’s strong financial performance during his tenure,” Target Board of Directors Lead Independent Director Monica Lozano said in the release.
In making the decision, the board cited Cornell’s transformation of Target into an omnichannel retailer and his guest-centric strategy, Lozano said in the release.
As PYMNTS reported in June 2020 — soon after the start of the pandemic — Cornell went against conventional wisdom and continued opening and redesigning brick-and-mortar stores even as he led the company’s digital shift. The stores would aid the digital shift by serving as fulfillment centers, he said, and the numbers showed he was right.
Read more: Target CEO Says Flexibility Is Key to Digital Shift
“How were we going to meet the needs of digital fulfillment? By using our stores,” Cornell told a National Retail Federation (NRF) webinar at the time. “As I sit here today, I think we’ve changed many minds.”
On the logistics front, Target announced Wednesday that its executive vice president and chief supply chain and logistics officer, Arthur Valdez, will retire and be succeeded by the company’s senior vice president of global inventory management, Gretchen McCarthy.
“Gretchen will be an excellent addition to our leadership team,” Cornell said in the release. “She is stepping into her role as a proven leader who will bring a deep understanding of our business operations, and a highly collaborative, solution-oriented approach to leadership.”
The move comes at a time when Target is working to keep up with a spike in demand for same-day delivery and in-store pickup.
See more: Target to Double Rapid Sorting Capacity Amid Demand Spike for Same-Day Delivery
As PYMNTS reported Aug. 17, Cornell said during the company’s second-quarter earnings call that it plans to double its investment in the small, local “sortation centers” it has been adding lately to help support rapid order fulfillment by nearby stores and ease its final mile logistical challenges.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.