Target Appoints Ex-Walmart Executive as Supply Chain Chief in Turnaround Plan
Target's Leadership Changes and Supply Chain Strategy
May 19 (Reuters) - Target on Tuesday named former Walmart executive Jeff England as its chief supply chain officer, as CEO Michael Fiddelke bolsters the retailer's management team in his push to drive efficiency and restore sales growth.
CEO Michael Fiddelke's Turnaround Efforts
Fiddelke, who took over as Target's top boss in February, has pledged to turn around the company after several quarters of weak sales. The company had announced a roughly $6 billion plan to improve inventory, in-store experience and delivery times.
Jeff England's Appointment and Background
England will succeed company veteran Gretchen McCarthy, and join Target at the end of this month from building material supplier QXO, where he is currently the chief supply chain officer. He was at Walmart between 2004 and 2022, holding several roles, including senior vice president for supply chain.
Recent Executive Hires
His appointment follows that of Cara Sylvester as chief merchandising officer and Lisa Roath as chief operating officer under Fiddelke since February.
Supply Chain Initiatives and Store Operations
Fiddelke told investors in March that the company saw "opportunity for efficiency within supply chain" as it looked to improve in-stock levels and scale up same-day delivery from its roughly 2,000 stores in the U.S.
Opening of Houston Receive Center
On April 29, Target opened its first "receive center", or an upstream warehouse, in Houston to help store inventory from vendors across the country to ensure it can maintain in-stock levels while preventing stores and distribution centers from becoming overcrowded.
Investments in Employees and Pricing Strategy
The company is also trying to invest more towards store employees, cutting back on some corporate roles. It also reduced prices on about 3,000 products earlier this year.
Upcoming Quarterly Results and Market Outlook
Target reports quarterly results on Wednesday amid a heavy retail earnings week as investors look for commentary on the consumer spending environment amid high inflation and supply chain volatility due to the Iran war.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Leroy Leo)
