Anjali Sundaram | CNBC Target CEO Brian Cornell has agreed to stay on for about three more years as the retailer announced Wednesday that it is eliminating the 65-year retirement age. “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, lead independent director of Target’s board, said in a release type. Cornell, who is 63, has been Target’s CEO since 2014. Under his leadership, the company has expanded its customer base and built its reputation as a discounter with unique and trendy merchandise. But more recently, Target has faced massive changes 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 quarter ended July 30 as it tried to sell that excess inventory at steep discounts. Shares of the company are down about 29% so far this year. Separately on Wednesday, Target said Arthur Valdez, head of supply chain and logistics, will retire. He will be succeeded by Gretchen McCarthy, an 18-year Target veteran who is currently senior vice president of global inventory management. He will report to Target COO John Mulligan effective immediately, with Valdez in an advisory role until April. Led by Cornell, Target has launched numerous private brands including grocery, activewear and home decor. It has partnered with prominent national brands, turning parts of its stores into mini-shops for Disney, Levi Strauss and most recently Ulta Beauty. And it rolled out e-commerce options, including curbside pickup, and turned the back of its stores into fulfillment centers that handle the vast majority of online orders. Those investments paid off during the Covid pandemic, as Target remained open as a core retailer and attracted shoppers to its website and stores. Prior to joining the retailer, Cornell was CEO of PepsiCo Americas Foods, Walmart-owned Sam’s Club and Michaels Stores.
