For a long time, Brian Cornell was the executive who rescued Target. He took a chain that had lost its magic and found a way to make it special again.
That included some incredibly bold risks. He was the executive who decided to move away from many big-name brand partnerships and go with creating owned and operated brands.
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Basically, if that move had failed, the company would’ve sunk hundreds of millions into products nobody wanted. Instead, Cornell understood that as long as something had the Target seal of approval, customers would accept it.
For many of the years he has been in charge, Target (TGT) has been flying high. Cornell navigated the Covid pandemic as well as any executive. But he was not prepared to be punished for trying to be inclusive.
Target has faced boycotts and lost customers over bathroom policies, its Pride month merchandise collection, and all sorts of other issues right-wing companies used to paint the company as “woke.”
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In most cases, it wasn’t actually about what Target chose to do. Instead, it was about virtue signaling to conservatives.
No matter the reason, the boycotts and constant local labeling have cost the company some sales. And now, with Cornell into the final year of serving as CEO, is making some bold moves to protect his legacy.
Image source: MDoculus/Getty Images
Target wants its mojo back
Cornell knows he has to lay out a long-range plan to bring Target back. He talked about his goals during the chain's first-quarter earnings call.
“At Target, our road map for growth serves as a guide for bringing the best of our brand to life each day. This includes our assortment of on-trend affordable products and an experience that prioritizes ease, convenience, and a personal touch with every interaction, all at an incredible value.
“These are the things that make Target, Target, and we remain confident that our strategy will allow us to continue bringing joy to millions of American families while, importantly, paving the way for long-term profitable growth” he said.
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That's saying a lot without much in the way of specifics. He did offer consumers a sort of bribe to come back to the chain, and it's a smart one, given the economic times.
“For the summer season, we're offering more than 10,000 new items, starting at just $1. In the popular Bullseye's Playground, we will continue offering items at $1, $3, and $5. And we're expanding this assortment to include beauty items as well as trending snacks and beverages,” he added.
Cornell, Target bet big on pricing and value
Consumers tend to boycott brands they don't really need. It's easy to boycott Bud Light because it's not that different from any other light beer brand.
Once people see value in a product, they tend to ignore any morality. (That's why Chick-fil-A has been massively successful, despite the hateful things done and said by its corporate owners.)
Cornell is betting that if Target can deliver value, its right-wing customers will forget that the chain supports dignity for transgender people.
“We're also finding new ways to move faster and operate differently, given that uncertainty and the pace of change are higher than ever,” he shared.
He noted that speed and flexibility will help with the impact of tariffs.
“The merchandising team has been working tirelessly to mitigate the impact of tariffs. And the difficulty level has been incredibly high, given the magnitude of the rates we're facing and a high degree of uncertainty on how these rates and impacted categories might evolve,” he added.
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In the end, Cornell, who is retiring before the end of 2025, is betting that value brings back the “Tar-zhay” good feelings.
“As a company that's aimed to deliver great products and outstanding value, we're focused on supporting American families as they manage their budgets. We have many levers to use in mitigating the impact of tariffs, and price is the very last resort. Our strategy is to remain price competitive by leveraging the capabilities, long-standing relationships, and the scale that set us apart for many of our retail peers,” he said.
