Target CEO Brian Cornell to stay in post for another three years as company rolls back retirement age

Target CEO Brian Cornell has agreed to stay in his position for about three more years as the retailer announced on Wednesday that it is phasing out the retirement age of 65.

“We enthusiastically support his commitment to the cause and his continued leadership, especially given his track record and the strong financial performance of the company during his tenure,” said Monica Lozano, Lead Independent Director of Target’s Board of Directors. in the news release.

Cornell, 63, has been Target’s chief executive since 2014. Under his leadership, Target expanded its customer base and solidified its reputation as a discounter with unique and trendy products. But more recently, the company has faced a huge shift in shopping habits as sales slowed and junk merchandise piled 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 excess inventory at deep discounts.

The company’s shares are down about 29% this year.

Separately Wednesday, Target said Arthur Valdez, director of supply chain and logistics, will step down. He will be replaced by Gretchen McCarthy, an 18-year Target veteran who is currently senior vice president of global inventory management. She will report to Target COO John Mulligan, effective immediately, as Valdez will serve in an advisory role until April.

Led by Cornell, Target has launched many private labels, including for grocery stores, sportswear, and home decor. It has partnered with well-known national brands, turning some of its stores into mini-stores for Disney, Levi Strauss and, most recently, Ulta Beauty. And it has launched e-commerce options, including pickup, and has turned the back of its stores into fulfillment centers that process the vast majority of online orders.

That investment paid off during the pandemic as Target remained a major retailer and brought shoppers to its website and stores.

Prior to joining the retailer, Cornell served as CEO of PepsiCo Americas Foods, Walmart-owned Sam’s Club and Michaels Stores.