Target CEO Brian Cornell to stay past mandatory retirement age

Goal is dropping the necessary retirement age for its CEO, permitting its Chief Government Brian Cornell to remain on for 3 extra years.

Gross sales on the low cost retailer have grown steadily for the reason that 63-year-old Cornell took the highest job in 2014.

“In discussions concerning the firm’s longer-term plans, it was necessary to us as a board to guarantee our stakeholders that Brian intends to remain in his position past the standard retirement age of 65,” stated Monica Lozano, the lead unbiased director of Goal’s board in a launch on Wednesday.

The Minneapolis-based chain had been accelerating its on-line companies equivalent to curbside pickup and same-day companies whereas sprucing up its shops effectively earlier than the pandemic. In the course of the peak of the well being disaster, Goal grew to become a lifeline to tens of millions of individuals making an attempt to restrict their publicity in the course of the pandemic.

The corporate has additionally been out entrance with its funding with staff. It raised its minimal wage to $15 per hour in 2020, a dedication it pledged in 2017 and effectively forward of many grocery rivals. Earlier this 12 months, Goal adopted minimal wages that vary from $15 to $24 an hour, with the best pay going to hires in probably the most aggressive markets.

However now the corporate, like different retailers, is making an attempt to navigate great shifts in shopper habits with the worst of the pandemic within the rear view mirror whereas it wrestles with hovering costs and rising wages for staff. Goal reported strong gross sales for the fiscal second quarter, however its revenue plunged almost 90% after it was pressured to slash costs to clear undesirable inventories of clothes, dwelling items and electronics.

Earlier than becoming a member of Goal, Cornell spent greater than 30 years in escalating management positions at retail and consumer-product firms. Roles included chief advertising officer at Safeway Inc. and CEO at Michaels, Walmart’s Sam’s Membership and PepsiCo Americas Meals.

The corporate additionally introduced Wednesday that Arthur Valdez, govt vp and chief provide chain and logistics officer, will retire. Valdez might be succeeded by Gretchen McCarthy, senior vp, world stock administration.