Ulrich to Step Down As Target CEO

By Gita Sitaramiah, Pioneer Press, St. Paul, Minn.

Jan. 9–Target Corp. head Bob Ulrich will retire as chief executive effective May 1, the company said this afternoon.

Current Target president Gregg Steinhafel was named to succeed Ulrich. Ulrich, who turns 65 in April, will remain as chairman through the end of fiscal 2008.

“The board has tremendous respect for Bob’s exceptional leadership and the remarkable performance Target has achieved under his direction,” said Jim Johnson, vice chairman of the Executive Committee of Target’s board of directors. “His skill and integrity have created a highly successful organization and talented executive team which are admired throughout the retail industry.

“We are completely confident in Gregg’s ability to continue this legacy, positioning Target to deliver profitable growth for many years to come,” Johnson said in a statement.

Ulrich began his career as a merchandising trainee in 1967 at Dayton’s, a former division of Target Corp. He subsequently held a variety of jobs in stores and merchandising. He was named president of Target Stores in 1984 and became chairman and chief executive officer of the division in 1987. In 1994, Mr. Ulrich was named chairman and chief executive officer of the corporation. Under Ulrich’s leadership, Target has nearly tripled its sales and U.S. store presence and has increased its net earnings nearly nine-fold.

“During Bob’s tenure, Target has achieved outstanding financial results and become one of the most recognized and valuable brands

in the world,” said Steinhafel.

Financial results have been more troubling of late. Target has seen sales growth slow and investors haven’t been keen on the stock. Target shares closed at $49.77 today, 30 percent off their 52-week high.

Steinhafel, 52, joined Target in 1979. He was named executive vice president, merchandising in 1994. He was promoted to his current position, president of Target, in 1999 and became a member of the board of directors in 2007.

In addition to merchandising, Steinhafel also previously had responsibility for stores and global sourcing. Most recently, Steinhafel has led all functions related to merchandising, as well as Target’s distribution network, technology services organization and legal team, including assets protection and government affairs.

“Our board and I have great confidence in Gregg as the next chief executive officer of Target,” Ulrich said. “Gregg’s considerable knowledge of our culture and history after 28 years with the company, his personal commitment to building a world-class team, and the innovation and energy he brings to Target every day make him uniquely qualified to lead Target and drive its continued profitable growth in the current global retail environment.”

Steinhafel is a graduate of Carroll College and Northwestern University’s Kellogg School of Management. He is a member of the board of The Toro Co., the Retail Industry Leaders Association and Tree House, a Minnesota-based non-profit organization.

Target Corp. currently operates 1,591 Target stores in 47 states.

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