Brian Cornell just celebrated his first year as chairman and chief executive officer of Target Corp. and he has a lot of changes to show for it.
Cornell closed the failing Canadian business, hired a top IT specialist and data security expert to restore confidence in its systems, identified key categories for the retailer to home in on and is in the process of overhauling Target’s food offerings. He also made opening small format CityTarget and Target Express stores a priority, then in April, rebranded the smaller units simply as Target.
Cornell has also left a mark on Target’s executive ranks.
Target on Monday elevated John Mulligan to a new role as executive vice president and chief operating officer, effective Sept. 1 and named Cathy Smith as its new chief financial officer. Both report to Cornell.
On Friday, the company said merchandiser Jose Barra had left the company.
Kathee Tesija, executive vice president, chief merchandising and supply chain officer, stepped down in July. Retail analysts said that Tesija was symbolically seen as the “old guard” by Cornell, and also that Tesija had too much responsibility to handle.
“For a significant number of people there’s going to be a shake-up,” Amy Koo, a senior retail analyst at Kantar Retail. “This is a new Target. Exiting Canada and reinventing grocery…it’s not the way things were done.”
Cornell in March promised to create a more nimble and efficient omnicentric company, which led to 1,700 layoffs at that time and 140 more in June.
Target this month elected two seasoned executives, Donald R. Knauss, former chairman and ceo of the Clorox Corp., and Robert L. Edwards, former ceo of Safeway, to its board of directors. “These are two premier people,” said Craig Johnson, president of Customer Growth Partners. “With Ann Mulcahy, chairman of Save the Children Foundation, cycling off the board, it would be good to get a tech person like [Hewlett-Packard’s] Meg Whitman.”
In a statement, Target said Mulligan would assume oversight of stores, supply chain and properties.” Johnson said Mulligan’s coo role is modified from traditional descriptions of the job since he won’t oversee staffing functions. “He’s not in charge of everything,” said Johnson. “Cornell is positioning the company for strong future growth. Now, he really does have a lot of the puzzle pieces in place.”
“[Mulligan] has unparalleled expertise in Target’s business and I am very pleased that he will be assuming this new leadership position,” Cornell said.
Mulligan served as interim president and ceo during Target’s search for a successor to former ceo Gregg Steinhafel, who stepped down in May 2014.
“Bringing together key operations functions under John will put Target on a more progressive path to transformation and help us break down barriers to deliver improvements across our business,” Cornell said. “As our new cfo, Cathy brings significant business and retail expertise to Target. Her background will be integral to accelerating our long-term growth strategy.”
Mulligan said, “Integrating operations will help further fuel Target’s transformation and as [chief operating officer], I’ll prioritize driving improvements in the fundamental areas of our business and equipping the team to move quickly,” said Mulligan, who joined Target in 1996 and has been cfo since 2012.” By working strategically across the enterprise, we will build on the critical capabilities that will fuel Target’s differentiation in the marketplace. Achieving operational excellence is foundational to Target’s long-term success.”
The role of coo is becoming more important to retailers who must juggle the more mundane requirements of keeping shelves stocked and stores staffed up with the more complicated demands of an omnicentric business’ fulfilment of online orders.
Prior to joining Target, Smith was cfo at Express Scripts and served in various roles at Wal-Mart Stores Inc. and GameStop.
“We are continuing an active search” for Tesija’s successor, a Target spokesman said. “It will be a difficult job to fill,” Johnson said. “You don’t find that many people who are good with design, fashion, general merchandise and the more day to day stuff. It would have to be someone at Wal-Mart or an ex-Wal-Mart employee.”
Target reports second-quarter results on Aug. 19, and Cornell, Mulligan and Smith are expected to participate, the retailer said.