Name: Target CEO's Plan to Keep Stores Open
Uploaded: 2019-12-11
Duration: 4 min 15 s
Description: Brian Cornell is leading a three-year $7 billion turnaround plan.

 Brian, there is so much change going on in the retail industry these days, and everybody is plotting their strategy. What is your plan for Target? We've decided to play the long game. And back in February, we announced the fact that we're going to invest $7 billion over the next few years to remodel stores, to build new small formats and urban centers and on college campuses, to invest in digital and technology to enhance our supply chain capabilities, and to build new brands. So we're really planning for the Target of tomorrow. When you heard the news that Amazon is buying Whole Foods, how did that development influence your thinking? For me-- and I think, for our entire team-- it validated a strategy we've been talking about for three years. And it validated the fact that stores still matter. And even for Amazon, I think, their recognition that a physical presence is important. And proximity to the consumer is important. So it really validated our strategy and the fact that we believe, going forward, physical and digital will be important. But didn't you rethink some of your expansion plans and say hey, maybe we should be beefing up our grocery line. Maybe we should do more to innovate our digital operations. Did that conversation happen in your boardroom? Well, those conversations happen all the time. And I think, if anything, we're more focused. We've got a greater sense of urgency. We have to put a premium on execution. And we recognize we have the right strategy in place. But now, there's a premium on execution. We've got to move as quickly as possible. And we want to make sure we're playing our game and continuing to build the Target brand. It seems that whenever Amazon moves into a new area, they're changing our definition of what is retail. And many retailers are trying to innovate their business models. What about a Target? Well, we're innovating across our entire business-- AI and machine learning and CGI. Well, those are all the things we're working on right now. So we've made major investments in data and analytics and making sure that we have the right technology to support our business going forward. So innovation is alive and well, but it's all focused around how we meet the needs of today's guests. Tell us a little bit more about technology and innovation and how you are doing more with technology to engage with your consumers who are doing so much more online shopping. We recognize that today, sometimes, you have time to shop in our stores. Sometimes, you might be at your desk. You place your order. You want to come by and pick it up. Other days, you might actually want us to run it out and put it in your trunk or deliver it right to your home. So we've got to make sure our model is adapting to the way consumers shop. So do you think you're moving fast enough? So we're moving as quickly as we can. We want to test and learn and innovate and adapt. But we also need to recognize we've got to bring the entire organization with us. Well, looking at Target stock, it looks like your investors would like to see more from Target-- bolder moves, maybe an acquisition, maybe some new innovations with technology. What do you need to do better? Well, I think we've got to execute, and we've got to put proof points on the board. So I expect the second quarter to be a time when we're going to demonstrate to our shareholders we're making progress. And we'll focus in Q3 and Q4 and in 2018 to make sure we're advancing and executing that strategy. So let's fast-forward. Three years from now, your expansion plans would have been all done. What will we be saying about the status and the relevance of Target? Target's going to be one of the future winners in retail. And while others are closing their doors and cutting back and trying to save their way to the next quarter, we're investing for the future. 

Target CEO's Plan to Keep Stores Open

Retail

Brian Cornell is leading a three-year $7 billion turnaround plan.

Brian. There is so much change going on in the retail industry these days, and everybody is plotting their strategy. What is your plan for Target? We decided to play the long game, and back in February we announced the fact that we're going to invest $7 billion over the next few years, too. Remodel stores to build new small formats and urban centers on college campuses, to invest in digital and technology, to enhance our supply chain capabilities and to build new brands. So we're really planning for the target of tomorrow. When you heard the news that Amazon is buying whole foods, how did that development influenced your thinking for me? And I think for our entire team, it validated a strategy we've been talking about for three years, and it validated the fact that store's still matter. And even for Amazon, I think their recognition that a physical presence is important and proximity to the consumer is important. So it really validated our strategy and the fact that we believe going forward, physical and digital, be important. But didn't you at rethink some of your expansion plans and say, Hey, maybe we should be beefing up our grocery line. Maybe we should do more to innovate our digital operations. That conversation happen in your boardroom? Well, those conversations happen all the time, And I think if anything, we're more focused. We've had a greater sense of urgency. We have to put a premium on execution, and we recognize we have the right strategy in place. But now there's a premium on execution. We've got to move as quickly as possible, and we wanna make sure we're playing our game and continuing to build the target brand. You know, it seems that whenever Amazon works into moved into a new area, they're changing our definition of what is retail. And many retailers are tryingto innovate their business models. What about a target? Well, we're innovating across our entire business. Aye, aye. And machine learning and C g I. Well, those are all the things we're working on right now. So we've made major investments in data and analytics and making sure that we have the right technology to support our business going forward. So innovation is alive and well, but it's all focused around how we meet the needs of today's guests. Tell us a little bit more about technology and innovation and how you are doing more with technology to engage with your consumers who are doing so much more online shopping. We recognize that today sometimes you have time to shop in our stores. Sometimes you might be at your desk. You place your order. You want to come by and pick it up. Other days, you might actually want to run it out and put it in your trunk or deliver it right. You're home. So we've got to make sure our model is adapting to the way consumer shop. So do you think you're moving fast enough? So we're moving as quickly as we can. We want a test and learn and innovate and adapt. But we also need to recognize we've gotta bring the entire organization with us. Well, looking at target stock, it looks like your investors would like to Seymour from target. Ah, bolder moves, maybe an acquisition, maybe some new innovations with technology. What do you need to do better? Well, I think we've been execute and we've gotta put proof points on the board. So I expect the second quarter to be a time when we're gonna demonstrate to our shareholders. We're making progress, and we'll focus in Q three and cue for 2018 to make sure we're advancing and executing that strategy. So let's fast forward. Three years from now, your expansion plans would have been all done. What will we be saying about the status and the relevance off target? Target's going to be one of the future winners in retail. And while others air closing their doors and cutting back and trying to say their way to the next quarter, we're investing for the future.