Target ditched its mandatory retirement age to keep Brian Cornell in charge
Target will apparently need CEO Brian Cornell when he’s 64, and beyond.
Mr. Cornell, who has had a remarkable run since taking over as CEO in 2014, is expected to continue leading Target for another three years. All it took was for the company to scrap its mandatory retirement age of 65 so the CEO, currently 63, would be able to carry on doing his job.
“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,” Monica Lozano, lead independent director of Target’s board, said in a statement. “We enthusiastically support his commitment and his continued leadership, especially considering his track record and the company’s strong financial performance during his tenure.”
Mr. Cornell has led a transformation of Target’s business as CEO. The retailer on his watch has made significant investments in its employees, remodeling existing stores, opening smaller format locations, expanding private and exclusive labels, engaging in key merchandising partnerships (Apple, Levi’s, Ulta) and upgrading its technological capabilities in pursuit of making it the easiest place to shop. Target’s investments in its people and technology is particularly evident in its digital commerce operations, with stores fulfilling around 95 percent of all orders placed through the chain’s app and on target.com.
“By taking care of our guests, our team, our communities and our shareholders, Target has added nearly $40 billion in annual revenue since I joined the company, and in many ways, we’re just getting started,” said Mr. Cornell. “Our success is fueled by the best team in retail, and I am confident our culture will continue to propel our company forward.”
Target hit a rough patch this year, finding itself with excess inventory as consumer demand softened with rising prices. The chain made the decision under Mr. Cornell to aggressively mark down overstocked items to free up inventory space, albeit with the effect of lowering profit margins.
Mr. Cornell, speaking last month on the company’s second quarter earnings call, said the decision was the right one.
“We’ve meaningfully reduced our ownership and commitments in categories where we’ve seen softening demand,” said Mr. Cornell. “This has allowed us to strengthen our inventory position and in-stock position in the categories that are driving our growth, most notably in food and beverage, beauty and essentials.”
- Target Announces Leadership Updates – Target Corporation
- Is Target ready for what comes next? – RetailWire
- Target (TGT) Q2 2022 Earnings Call Transcript – The Motley Fool
- Target isn’t wasting any time in cutting the glut from its inventory – RetailWire
DISCUSSIONS QUESTIONS: What is your position on mandatory retirement ages in retail? What should Target be doing now in anticipation of the day when Brian Cornell eventually steps down as CEO?