Target appoints Pepsi executive Brian Cornell as CEO
Cornell, 55, will be responsible for accelerating Target's performance and developing its e-commerce business, the No. 3 U.S. retailer said on Thursday.
His top priorities when he takes over on Aug. 12 will also include improving traffic and sales at Target's U.S. and Canada stores, spokesperson Dustee Jenkins told Reuters.
Target removed Gregg Steinhafel, CEO since 2008, in May after a data breach during the key holiday season led to the theft of at least 40 million payment card numbers and 70 million other pieces of customer data.
Steinhafel's exit also followed Target's botched multi-billion dollar expansion into Canada.
Cornell resigned earlier this week as head of PepsiCo's Americas Foods, the largest of its four divisions, after leading the business for more than two years.
The business, which reported $25 billion in revenue in 2013, makes Frito-Lay chips and Quaker Oats among other products.
Cornell previously spent three years at Wal-Mart Stores Inc where he ran the Sam's Clubwarehouse chain. He was also the CEO of arts and crafts chain Michael's Stores Inc for two years, according to PepsiCo's website.
Cornell had been a contender to succeed PepsiCo CEO Indra Nooyi, according to the Wall Street Journal, which reported his appointment earlier on Thursday. (http://on.wsj.com/1xCMUqk)
He will receive an annual base salary of $1.3 million and will be granted stock options worth as much as $3.75 million, Target said in a filing.
The company did not make Cornell available for an interview.
John Mulligan, who led the company on an interim basis after Steinhafel's exit, will move back to being full time CFO.
Target opened 124 stores and three distribution centers in Canada last year in its first venture outside the United States.
The ambitious launch gave Target a hefty market presence immediately, but created major logistics headaches that had many consumers complaining about barren shelves. Customers were also upset by steeper than expected prices.
Target reported a loss of nearly $1 billion in Canada on sales of $1.3 billion last year.
The company's shares were down marginally in premarket trading.
The stock fell 11 percent in the weeks following the breach, but has made up for most of those losses since then to close at $61.38 on the New York Stock Exchange on Wednesday.