MINNEAPOLIS — Brian Cornell has committed to stay on as chairman and chief executive officer at Target for about three more years, beyond the retailer’s traditional retirement age of 65, the company said on Wednesday. But Arthur Valdez, executive vice president and chief supply chain and logistics officer, does plan to retire from Target. He will be succeeded by Gretchen McCarthy, who most recently served as senior vice president, global inventory management.

Brian Cornell

“In discussions about the company’s longer term plans, it was important to us as a board to assure our stakeholders that Brian intends to stay in his role beyond the traditional retirement age of 65,” said Monica Lozano, the lead independent director on Target’s board of directors. “We enthusiastically support his commitment and his continued leadership, especially considering his track record and the company’s strong financial performance during his tenure. Since joining Target in 2014, Brian has worked to transform Target into an omnichannel leader by driving a guest-centric, purpose-driven strategy. The board is pleased that Brian has committed to continue leading Target’s strategy and driving its multi-year, long-range plan alongside his talented leadership team.”

With Cornell’s commitment to stay on, Target’s board eliminated its retirement policy, which was designed to initiate a discussion regarding the possible retirement of its CEO at the age of 65.

“Being a Target team member has been the high point of my career, and I’m energized about leading the company in the years ahead as we build on the growth we’ve already accomplished,”Cornell said. “By taking care of our guests, our team, our communities and our shareholders, Target has added nearly $40 billion in annual revenue since I joined the company, and in many ways, we’re just getting started. Our success is fueled by the best team in retail, and I am confident our culture will continue to propel our company forward. I appreciate the board’s confidence, the opportunity to keep serving our guests, and the chance to continue leading Target in the years ahead.”

Target said that McCarthy will succeed Valdez and join Target’s leadership team, effective immediately. Valdez and McCarthy have been partnering closely to ensure a smooth transition, according to the company, and Valdez will continue working with the Target team in an advisory role through April 2023.

Since joining Target in 2016, Valdez has played a critical role in transforming its global supply chain and logistics network, advancing Target’s ability to offer a best-in-class omnichannel experience for guests, the company said. McCarthy, an 18-year Target veteran, has held numerous leadership positions across the company. She brings a deep understanding of Target’s business operations, with experience spanning supply chain transformation, merchandise planning and buying. During her tenure at Target, she has built a global team, modernized inventory management technology resources, led through supply chain volatility during COVID-19 and navigated inventory optimization efforts.

“Arthur brought deep expertise to Target, and his leadership drove significant innovation across our supply chain, fueling Target’s omnichannel growth,” Cornell said. “On behalf of the entire Target team, I thank Arthur for his contributions and wish him well as he transitions to retirement.

“Gretchen will be an excellent addition to our leadership team. She is stepping into her role as a proven leader who will bring a deep understanding of our business operations, and a highly collaborative, solution-oriented approach to leadership. She and her global team will continue to drive our supply chain strategy to deliver for our guests and support strong enterprise growth.”