Target CEO Brian Cornell is expected to stay in his role for another three years after the company scrapped its policy of retiring chief executives at age 65.
The policy change comes at a time when the retailer is struggling with challenges arising from high inflation and surplus inventory.
“In discussions about the company’s longer-term plans, it was important to us as a board to assure our stakeholders that Brian intends to stay in his role beyond the traditional retirement age of 65,” said Monica Lozano, the lead independent director of Target’s board.
Cornell, 63, has been serving as the company’s chief executive since 2014. He has played an instrumental role in scaling Target’s eCommerce business and delivery operations in the face of rising competition from Amazon and Walmart.
A year after his appointment, Cornell helped the company exit the Canadian market and oversaw the sale of Target’s pharmacy business to CVS, Reuters reported.
Now that Cornell is expected to stay at the helm, he is tasked with decluttering excess inventory in Target stores — a challenge as consumers are holding off on making discretionary purchases.
Last month, Target reported a 90% decline in its quarterly revenue due to steep discounting. The company’s stock is down by more than 29% this year.