Target gave up its mandatory retirement age to keep Brian Cornell in office

09.09.2022

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 lead Target for another three years. All the company had to do was lift the mandatory retirement age of 65 to allow the current 63-year-old CEO to continue his work.

“It was important to us as a board to reassure our stakeholders that Brian intends to continue in his role beyond the traditional retirement age of 65,” said Monica Lozano, senior independent director of Target’s board of directors, in a expression. “We enthusiastically support his dedication and continued leadership, especially given his track record and the company’s strong financial performance during his tenure.”

As CEO, Mr. Cornell has led a transformation of Target’s business. The retailer on its watch has made significant investments in its people, revamping existing stores, opening smaller branches, expanding private and exclusive labels, entering into major merchandising partnerships (Apple, Levi’s, Ulta) and enhancing its technological capabilities to achieve the easiest place to shop. Target’s investment in its people and technology is particularly evident in its digital commerce operations, with its stores fulfilling approximately 95 percent of all orders placed through the chain’s app and on target.com.

“By serving our guests, our team, our communities and our shareholders, Target has generated 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 driven by the best team in retail and I am confident that our culture will continue to drive our business forward.”

Target went through a rough patch this year and found itself with it overstock as consumer demand eased with rising prices. The chain, under Mr. Cornell, made the decision to aggressively reduce obsolete items to free up storage space, albeit with the consequence that profit margins are falling.

Mr. Cornell, last month spoke about the company’s second quarter Result callsaid the decision was correct.

“We have significantly reduced our ownership and commitments in categories where we have seen declining demand,” said Mr. Cornell. “This has allowed us to strengthen our inventory and inventory position in the categories that are driving our growth, particularly Food & Beverage, Beauty and Essentials.”

DISCUSSIONS QUESTIONS: How do you feel about mandatory retirement ages in retail? What should Target do now in anticipation of the day Brian Cornell finally steps down as CEO?

brain trust

“A mandatory retirement age is stupid. The wisdom, experience and leadership that men and women bring to their businesses in their 60s and 70s is incredibly powerful.”

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