Target CEO Brian Cornell agreed to stay on for another three years after the board removed the company’s retirement age of 65. Cornell, who is 63 years old, has been Target’s CEO since 2014. Target CEO Brian Cornell has agreed to stay on for another three years, as the retailer announced Wednesday that it will no longer have a retirement age of 65. “We enthusiastically support his commitment and continued leadership, especially given his track record and the company’s strong financial performance during his tenure,” Monica Lozano, Target’s lead independent director, said in a statement news release.
Cornell, who is 63 years old, has been Target’s CEO since 2014. Under his leadership, the company has grown its customer base and established itself as a discounter with unique and fashionable merchandise. However, in recent years, Target has faced significant shifts in shopping habits, with sales slowing and unwanted merchandise piling up. The company cut its forecast twice, and its quarterly profit fell nearly 90% in the three-month period ended July 30 as it tried to sell off that excess inventory with deep discounts. Shares of the company are down about 29% so far this year.
Target’s chief supply chain and logistics officer, Arthur Valdez, announced his retirement on Wednesday. Gretchen McCarthy, senior vice president of global inventory management at Target for the past 18 years, will succeed him. Valdez will continue to serve as an advisor to Target’s COO, John Mulligan, and will report to him immediately. Target, led by Cornell, has launched a number of private brands, including grocery, activewear, and home decor. It formed alliances with well-known national brands, converting portions of its stores into mini-stores for Disney, Levi Strauss, and, most recently, Ulta Beauty. In addition, it introduced e-commerce options, such as curbside pickup, and converted the backs of its stores into fulfillment centers, which handle the vast majority of online orders.
Those investments paid off during the COVID pandemic, as Target remained an important retailer, attracting customers to its website and stores. Cornell previously served as CEO of PepsiCo Americas Foods, a division of Walmart that owned Sam’s Club and Michael’s Stores.
