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MINNEAPOLIS — Change continues to define Target Corp. under chairman and chief executive officer Brian Cornell, whose first year at the helm of the discounter passed last month.
Change continues to define Target Corp. under chairman and chief executive officer Brian Cornell, whose first year at the helm of the discounter passed last month.
Most recently the company promoted chief financial officer John Mulligan to the newly created role of executive vice president and chief operating officer, and named Cathy Smith to succeed him as CFO.
The appointments followed the departure of executive vice president of merchandising Jose Barra and chief merchant Kathee Tesija.
Also, Target raised its full-year earnings guidance for the second time, as second quarter sales and profits beat Wall Street’s expectations
The latest changes overseen by Cornell follow the company’s exit from Canada, its hiring of a data security specialist to restore faith in its systems, its identification of key categories — especially food — and its experimentation with small formats.
The moves have positioned the chain for long-term growth, according to analysts.
Mulligan "has unparalleled expertise in Target’s business," said Cornell. "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."
Smith "brings significant business and retail expertise to Target," he said. "Her background will be integral to accelerating our long-term growth strategy."
Mulligan has worked at the retailer since 1996, when he began as a financial analyst. He was named CFO in 2012. In 2014, he led the company as interim president and CEO from May to August while continuing to act as CFO. Throughout his tenure, Mulligan has served in key leadership positions in finance and human resources, including director of target.com finance, director of capital investments, vice president of pay and benefits, vice president of financial planning and analysis, and senior vice president of treasury and accounting.
"Integrating operations will help further fuel Target’s transformation and as COO, I’ll prioritize driving improvements in the fundamental areas of our business and equipping the team to move quickly," said Mulligan. "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."
Smith said she has "a tremendous amount of respect and admiration for the Target brand and the team behind it. I look forward to continuing Target’s strong record of financial management and playing an active role as Target makes gains on its long-term strategic plan."
Prior to joining Target, Smith served as executive vice president and CFO at pharmacy benefits manager Express Scripts. She was also CFO at Walmart International and GameStop.
Barra, who joined Target in 2004 as a strategy group manager, was responsible for the beauty, electronics, entertainment, grocery, health care, household and chemicals, personal care, pets, toys, and sporting goods businesses. He was one of three executives who reported to then chief merchandising officer Tesija.
As part of his responsibility for health care, Barra had oversight of Target’s pharmacies. The retailer announced in June that it would sell its in-store pharmacies to CVS Health, which will rebrand them and operate them under its own name.
In keeping with its focus on food, Target will pilot a fast-casual cafe concept at 14 stores starting in October, according to a published report. Nine stores will have Freshii chain outlets, while three will carry Pizza Hut’s "artisan pies," including margherita and barbecue chicken, and two Minneapolis stores will have units of the D’Amico & Sons chain of Italian food eateries.
The test stores will mark a dramatic departure from Target’s typical offerings of popcorn, hot dogs and nachos.
Also, Target reportedly reached an agreement with Visa card issuers to reimburse up to $67 million in costs related to the data breach at the retailer in 2013. The agreement came after a proposed $19 million settlement between Target and Mastercard collapsed when not enough banks accepted the deal. The pact with Visa is based on a condition that a subset of card issuers entered into direct settlements with Target and Visa.
Target had incurred $162 million in net expenses related to the breach as of January 31.
