When Brian Cornell became Target's CEO in 2014, the company was in desperate need of a turnaround. The retailer was plagued by supply chain problems, trying to recover from a major data hack and struggling to compete with e-commerce giants like Amazon.
In today's episode of Leadership Next, Cornell talks about some of the key decisions he's made that have led Target to now be ranked number 32 on the Fortune 500, including a particularly unpopular announcement in 2017 that the company would spend $7 billion to rehab Target stores across the country. In the age of Amazon, investors were doubtful that spending money to improve brick and mortar was worthwhile. But today it's clear that investment has paid off. And as Cornell tells hosts Alan Murray and Michal Lev-Ram, despite the rise of online shopping, 73% of retail sales last year took place in physical stores.
In today's conversation, Cornell details how consumer spending has changed since the height of the pandemic, and how shoppers seem to be responding to the current economy. He explains why he feels it's so important for Target to improve wages and benefits for store associates. And, he talks about the importance of culture to the company's success.
Also in today's episode hear from Fortune Senior Writer Phil Wahba who has been reporting on Target for nearly a decade. Wahba fills us in on the state of Target when Cornell took over and how the CEO's leadership has transformed the company.
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