One way we do this is by consolidating your merchandise


24-Oct-2017 14:39

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By the end of his two hours in the store, Cornell had some germs of what only a few months later, as we’ll see, are significant changes he is planning. But Cornell is the first Target CEO to be recruited from outside the company, and fittingly, he is already bringing a jolt of fresh energy to the country’s third-largest retailer (behind only Wal-Mart and Costco).“I got such great, genuine feedback from them,” Cornell says of the Dallas visit.What Cornell sacrificed in pomp and circumstance, he made for up in candid opinions.The shoppers had a bevy of comments and complaints.

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Net income as a percentage of sales has fallen from 4.5% to 2% during the same period, according to S&P Capital IQ, and gross profit margins have slipped. A former senior Pepsi Co executive and CEO of Sam’s Club, he has made a name for himself in the retail world with a seemingly contradictory set of traits: He’s a dyed-in-the-wool data guy who likes nothing more than nosing around a store and getting a feel for what’s going on.As he puts it, providing advance warning ensures stores are “going to be beautiful—but it’s not reality.”A firm grip on reality is only the beginning of what Target needs today. The doubly deadly result: The retailer is no longer winning on style or on price. As of December, 37% of Americans had browsed in a Target store or its website in the preceding four weeks, according to data from Kantar Retail. That means millions of shoppers have abandoned Target.