Target CEO Brian Cornell to stay with the retailer for 3 more years

Target CEO Brian Cornell is sticking around, at least for the next three years or so, the retailer announced Wednesday.

With the announcement, Target said its board of directors eliminated the company’s retirement policy that would have forced the CEO to retire at 65.

Cornell, 63, has helmed Target, which has nearly 2,000 stores, since 2014.

Target CEO Brian Cornell / Photo courtesy: Target

“In discussions about the company’s longer-term plans, it was important to us as a board to assure our stakeholders that Brian intends to stay in his role beyond the traditional retirement age of 65,” Monica Lozano, lead director of Target’s board, said in a statement. “We enthusiastically support his commitment and his continued leadership, especially considering his track record and the company’s strong financial performance during his tenure.”

Target on Wednesday also announced the retirement of Arthur Valdez, EVP and chief supply chain and logistics officer, who joined the company in 2016. Gretchen McCarthy, SVP of global inventory management will take over that post, the company said.

Last month, Target reported second quarter same-store sales growth of 2.6%, driven in large part by the strength of its food and beverage sales, which increased in the “low double digits,” the company said.

The retailer said it had largely completed its push to get rid of a massive amount of excess inventory that had plagued it earlier in the year after higher prices drove inflation-wary consumers to focus on essential purchases. Inflation, though, continues to take a bite out of Target’s margins.

Under Cornell’s leadership, Target has been aggressive in the growth of its omnichannel offerings. Cornell led the company in investing in digital, data and supply chain capabilities, with a focus on making the retailer’s stores the hubs for both in-person and digital shopping. (It’s a move that even Target acknowledges was “considered counterintuitive and met with skepticism at the time.”)

In 2017, Cornell steered the company to acquire Shipt in a $550 million deal, giving Target nationwide capability to offer same-day delivery services.

Before joining Target, Cornell spent more than three decades in leadership positions at retailers and consumer-product companies. He served as Safeway’s chief marketing officer and was the CEO of Michaels, Sam’s Club and PepsiCo Americas Foods.

“Being a Target team member has been the high point of my career and I’m energized about leading the company in the years ahead as we build on the growth we’ve already accomplished,” Cornell said in a statement. “By taking care of our guests, our team, our communities and our shareholders, Target has added nearly $40 billion in annual revenue since I joined the company, and in many ways, we’re just getting started.”

Cornell made nearly $19.8 million in 2021, roughly the same as his compensation in 2020, according to Target documents. Much of his pay came from company stock.