Target Corp. Chief Executive Brian Cornell took another big step in reshaping the company Monday by elevating Chief Financial Officer John Mulligan to a new role and reaching outside the company for his successor.
Mulligan, a longtime Target executive who has been CFO since 2012 and was acting chief executive last year, was promoted to the new position of executive vice president and chief operating officer.
Cornell hired Cathy Smith, a former executive for Express Scripts and Wal-Mart, as Target's chief financial officer, starting Sept. 1.
Smith, 51, is the latest top-level executive Cornell has brought in from outside the company since he became chief executive a year ago.
"As our new CFO, Cathy brings significant business and retail expertise to Target," Cornell said in a statement. "Her background will be integral to accelerating our long-term growth strategy."
Cornell is himself the first chief executive at Target to come from outside the company. Since arriving last August, he has tapped Mike McNamara, a former Tesco executive, to be Target's chief information officer. He also has brought in Anne Dament from Safeway to be a senior vice president of grocery. Jackie Hourigan Rice, Target's chief risk and compliance officer and a former General Motors executive, was also hired last year during Cornell's watch.
The newly-created COO job reflects Cornell's eagerness to improve Target's operations. He told suppliers last week at an annual vendors summit that the retailer needs a lot of improvement in keeping shelves better stocked.
In the COO role, Mulligan will be in charge of stores and the logistics of supplying them, something that was previously one of the responsibilities of Kathee Tesija, the chief merchandising officer who is leaving the company. Target is in the midst of a comprehensive search to fill her position, which is crucial to the retailer, which prides itself on its cheap-chic reputation.
