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Target looks to get its groove back

September 11, 2014Written by George Anderson

Will Brian Cornell be able to return Target to its Tar Jay days? When Target's new CEO was named to the post in July, many questioned whether he would be able to help the chain regain its cheap chic mantle after a massive data 2013 breach and numerous execution issues nicked away at the company's brand equity in recent years.

Mr. Cornell told The Wall Street Journal that he plans to focus on key categories, including baby, children, fashion, furniture and wellness products, to drive traffic and compete with rivals ranging from Amazon to Walmart. Other categories, while important, will receive more attention as the chain meets its goals elsewhere.

An example of Target's approach under Mr. Cornell is the chain's hookup with TOMS just in time for the holiday season. TOMS for Target includes 50 items priced under $50. In addition to TOMS slip-on shoes, other items in the seasonal collection include apparel and accessories for women, men and kids as well as home goods. The TOMS for Target promotion will run from November 16 through March 12 in the company's stores in the U.S. and Canada.

In line with TOMS' One for One Giving model, for each item a customer buys from the collection, a blanket, meals or shoes will be donated to the following charities: American Red Cross Disaster Relief, Canadian Red Cross Disaster Relief, Feeding America and Food Banks Canada.

"We're excited to partner with Target for the holidays and take TOMS' One for One giving model further than ever before," said Blake Mycoskie, TOMS founder, in a statement. "Every purchase allows Target's guests to bring home a beautifully designed product and do good, providing nourishment, warmth and shoes to a person in need."

At a national meeting of the chain's store leaders this week held at the Target Center in Minneapolis, Mr. Cornell told the Star Tribune, "Hopefully, five years from now, ten years from now, we'll have people look back and say this was a real turning point. They know this is a new day, a new start."

In a separate Star Tribune piece, David Strasser, an analyst with Janney Capital Markets, gave Mr. Cornell credit for helping Target to regain some of its lost swagger.

"It seems that if nothing else, in his short time [as] CEO, Brian Cornell has brought back some confidence and reignited passion in a management team that has been hit pretty hard by a variety of factors, many of which were out of its control," Mr. Strasser wrote in a note to clients.

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