Dive Brief:
- Target announced the establishment of an Enterprise Acceleration Office “aimed at removing friction and enabling the team to make faster decisions in support of our growth,” Chief Operating Officer Michael Fiddelke, who will head up the newly created initiative, said during the retailer’s earnings call on Wednesday morning.
- Target also announced numerous changes to its executive leadership team, including the departure of Chief Strategy and Chief Growth Officer Christina Hennington and Chief Legal and Compliance Officer Amy Tu.
- The launch of its new innovation effort and the shuffles in its C-suite leadership come as Target posted lackluster first-quarter results, with drops in net and comps sales as well as sales declines across most categories.
Dive Insight:
A main function of Target’s newly created Enterprise Acceleration Office includes taking full advantage of technology and AI beyond its existing uses, Fiddelke told investors Wednesday morning.
Chief Financial Officer Jim Lee added that this team will assist Target in building on the “bright spots” of Q1, including growth in digital sales, which grew nearly 5%, led by same-day delivery’s growth of more than 35%.
“We are committed to delivering on our strategic priorities faster,” Target Chair and CEO Brian Cornell said. “With the Enterprise Acceleration Office, we’re changing how we operate [to] create the conditions for our team to advance our priorities more quickly and remain adaptable to the changing landscapes of our business.”
Along with the departures of Hennington and Tu, Target announced several other executive changes. Prat Vemana, chief information and product officer, will lead Target’s India global capacity center; Rick Gomez, chief commercial officer, will oversee Target’s enterprise insights team; and Lee will take charge of the retailer’s enterprise strategy and partnerships.
Hennington, who has been with Target for nearly 22 years, will step down from her role on May 25 but remain with the company through Sept. 7 as a strategic advisor, according to a Tuesday Securities and Exchange Commission filing by the company. Target did not name who will take over the chief strategy and growth officer role.
Tu, who has been with the company for less than a year, will depart on June 1, per the filing. Melissa Kremer, chief human resources officer, will oversee the function as Target conducts an external search for a new chief legal and compliance officer.
Target kicked off its fiscal 2025 with a decline in net and comparable-store sales, which were down 2.8% and 3.8%, respectively. The retailer also saw a drop in traffic and average ticket size, which both contributed to these results. Nearly all categories recorded declines in sales, but food and beverage saw a slight boost. This is the retailer’s third consecutive quarter of negative net sales results.
