and CEO of Sam's Club Brian Cornell speaks during the
Wal-Mart Stores Inc. shareholders' meeting in Fayetteville,
Ark., in this June 4, 2010 file photo. Target Corp. is
bringing in Cornell as its new chief executive, turning to
an outsider for the first time in its history to repair a
battered corporate culture and navigate a sea change in
Americans' shopping habits.
Target has hired Pepsi executive Brian Cornell as its new chairman
and CEO as it looks to recover from a huge data breach and
troubles in Canada.
interim CEO John Mulligan, who is chief financial officer for the
Minneapolis company. Mulligan stepped into the interim CEO post in
May when Target Corp.'s Gregg Steinhafel resigned following a
large data breach in the runup to Christmas.
Cornell, 55, most
recently served as CEO of PepsiCo Americas Foods. Prior to that,
he was CEO and president of Sam's Club of Wal-Mart International
and CEO of Michaels Stores Inc.
PepsiCo Inc. said
in a statement Thursday that it expects to announce Cornell's
Target said that
Cornell's top priorities will be to ramp up its performance and
press forward with its evolution into a retailer that seamlessly
incorporates online and brick-and-mortar experiences for its
Target is looking
to start anew after announcing in December a data breach in which
hackers stole millions of customers' credit- and debit-card
records. The theft badly damaged the chain's reputation and
profits and spawned dozens of legal actions that could prove
costly. Target's response since the theft has included free credit
monitoring for affected customers and an overhaul of security
expansion into Canada, its first foray outside the U.S., has also
been a disappointment. Analysts have said that Target botched its
Canadian expansion by moving too aggressively. The company opened
about 120 stores in the latest year and lost nearly $1 billion in
the Canadian business. In May it fired the president of its
Canadian operations, Tony Fisher, and replaced him with Mark
Schindele, a company veteran.
Target must also
work to restore faith among its investors. In June at its annual
shareholders meeting the final shareholder vote tally showed a
rise in dissent against key board members. All 10 nominees were
elected to the board but the rise in votes against several key
directors shows how uneasy investors still are following the data
Cornell is set to
become Target's CEO on Aug. 12.
finished at $61.38 per share on Wednesday. They have fallen 3
percent since the start of the 2014.