Report: Product mix, creativity at Target suffered under Steinhafel
Minneapolis – Target Corp. reportedly experienced difficulties in areas including product mix and corporate creativity under ousted CEO Gregg Steinhafel. According to the Wall Street Journal, these difficulties preceded any problems relating to Target’s fall 2013 data breach or expansion into Canada and helped lead to Steinhafel’s essentially forced resignation.
Anonymous Target executives and employees say that where Target had once benefited from assortments that varied from store to store, Steinhafel instituted much more rigid controls over product mix. Target also started relying more heavily on consumer staples and goods from suppliers who would pay higher placement fees, rather than trying to offer new and unique items.
In general, marketing and merchandising became more bureaucratic. The data breach and loss of profits caused by Target’s Canada expansion exacerbated existing issues. On May 2, a number of executives who had stopped bringing grievances to Steinhafel told the Target board they would leave if he did not. Steinhafel announced his resignation on May 5. Steinhafel declined to comment in the article.
Delhaize names Supervalu exec as CEO Delhaize Americas
Brussels, Belgium – Delhaize Group has appointed Kevin Holt as CEO for Delhaize America. Holt, formerly president of retail operations at Supervalu, will also become a member of the Delhaize Group executive committee and will start effective July 7 and lead the group’s U.S. operations.
Holt comes to Delhaize Group with more than 20 years of retail leadership experience in operations, strategy and information technology. Prior to Supervalu, he served for three years with Sears Holding Company and 14 years with Meijer, working in various leadership positions including executive VP of retail operations and senior VP of IT/services and strategic planning. Before moving into the retail industry, Holt spent nine years at NCR.
DeMoulas fires CEO, execs
Tewksbury, Mass. – Demoulas Supermarkets Inc. has fired CEO Arthur T. Demoulas. The retailer also fired director of operations Bill Marsden and VP of grocery Joe Rockwell.
Demoulas had been waging a public battle with his cousin Arthur S. Demoulas, a stakeholder and director of the company, about finances. Arthur T. Demoulas has claimed that his cousin seeks to raise prices and lower wages. The cousins have also publicly disagreed about agreements with suppliers and vendors.