Target's New CEO: 'We Need To Be Cool Again'
MINNEAPOLIS (WCCO) - Target is working to regain customer trust--and its signature style--after last year's data theft nightmare.
Target's new CEO, Brian Cornell, the first from outside the company, took over last month, and already he has a plan to put Target back on the bullseye.
When Cornell spoke to 14,000 of his employees in Minneapolis this week, he was honest--he said the company had missed the mark with shoppers.
"We need to be cool again," he said.
Target was once known for cheap chic--affordable yet fashionable clothes and housewares, but then the company started focusing on groceries and competing with Wal-Mart on price.
"I think we become cool again by really understanding trends, understanding where the guest is going and really anticipating and meeting their needs," he said. "I'll go back to the core brand positioning--expect more, pay less ... and we might have tipped the balance towards pay less."
Like Home Depot, Target is rethinking the security of its customers' personal information.
Last year, hackers stole 40 million debit and credit card numbers, sending shoppers fleeing and profits tumbling--down 62 percent from the year before.
Cornell said data security is now a top priority.
"I think the company's always been serious about data security, but I think we all realize this is a significant retail issue today," he said. "We've got to make sure data security is something we think about every day, every week at Target."
Target is the nation's fourth largest retailer, behind Wal-Mart, Kroger and Costco. It's now also competing with Amazon. That's why Target has launched a start-up tech firm inside its headquarters to create apps and improve its website, which now accounts for less than 3 percent of sales.
"Going forward, we really believe mobile will be the front door of our brand," Cornell said. "I see moms shopping our stores with a cart in one hand, usually with a child inside the cart. But in their other hand, they've got this smart phone, and it's guiding a lot of their choices."
The company is making choices too: launching a new concept called Target Express--stores one sixth the size of a normal one.
"It's really about meeting the needs of our guests in an urban center," Cornell said.
Target is also trying to get its fashion mojo back, partnering with Tom's Shoes and fashion designer Joseph Altuzarra.
Cornell is spending time meeting employees and seems to be quickly boosting morale.
"I hope others are [thinking] about the fact that Target's back," he said.
