Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Target shakes up online leadership with eye on rivals

Published 09/23/2016, 09:21 PM
Updated 09/23/2016, 09:30 PM
© Reuters. File photo of employees working at a Target store at St. Albert
AMZN
-
WMT
-
TGT
-

By Nandita Bose

CHICAGO (Reuters) - Target Corp (N:TGT) said on Friday its chief digital officer has left the company amid a company overhaul of its e-commerce operations to boost online sales and better compete with larger rivals such as Amazon.com Inc (O:AMZN).

Target said Jason Goldberger, who had been with the company for four years, will leave immediately. His role will be split between Chief Information Officer Mike McNamara and Chief Merchandising Officer Mike Tritton.

McNamara will be responsible for the website and digital strategy and Tritton will take over the pricing and promotional functions of the job.

"Taking this body of work in a new direction will help advance our efforts in these key areas during a pivotal time for Target," Chief Executive Brian Cornell said in a statement.

Goldberger's departure is the second high-profile exit at Target in less than a month. Chief Marketing Officer Jeff Jones left the company last month and joined Uber Technologies Inc [UBER.UL].

The leadership shake up at Target comes as its rivals gear up to better compete with Amazon. Wal-Mart Stores Inc (N:WMT) last month splashed out over $3 billion to acquire e-commerce startup Jet.com.

Target's online sales contribute about 3 percent to its overall revenue. Recognizing the need to boost growth, the Minneapolis-based retailer spent $1.4 billion in 2015 to improve its e-commerce business.

Target also said it will spend $1.8 billion this year and $2 billion a year starting in 2017 to improve its e-commerce operations.

Target's online revenue grew 31 percent in 2015, below the 40 percent growth Chief Executive Brain Cornell promised investors. For the second quarter, online sales grew 16 percent, a deceleration from 23 percent in the first quarter.

© Reuters. File photo of employees working at a Target store at St. Albert

Brick-and-mortar sales have also suffered, with Target reporting its first quarterly drop in comparable sales in two years during the second quarter. The company lowered its forecast for the rest of the year, saying it expects sales to be flat to down 2 percent in the two remaining quarters.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.