Tuesday morning names SuperValu, Guitar Center execs to board
Dallas – Tuesday Morning Corp. has named Sherry M. Smith, who most recently served as executive VP and CFO of SuperValu Inc., and Frank M. Hamlin, who currently serves as executive VP of marketing at Guitar Center, as independent members of the company’s board of directors, effective immediately.
Hamlin will serve on the Nominating and Governance Committee and Smith will serve on the Audit and Compensation Committee.
"We welcome Frank and Sherry to the Tuesday Morning board of directors, which continues to add high-caliber, deeply experienced executives to its ranks," said Steven R. Becker, chairman of the board. "Frank’s proven retail marketing expertise and Sherry’s financial acumen will serve the company extraordinarily well, and we look forward to their contributions."
Target taps new information chief amid continued security enhancements
Effective May 5, Bob DeRodes will lead Target’s information technology transformation as EVP and chief information officer, as the retailer continues to recover from the data breach late last year.
Target also provided details on additional security enhancements it has made following that breach — which reportedly resulted in the theft of 40 million credit and debit card records and 70 million other records of customer details — and shared plans to incorporate MasterCard chip-and-PIN technology across its REDcard portfolio.
DeRodes will assume oversight of the Target technology team and operations, with responsibility for the ongoing data security enhancement efforts as well as the development of Target’s long-term information technology and digital roadmap. The company is continuing its active search for a chief information security officer and a chief compliance officer.
“Establishing a clear path forward for Target following the data breach has been my top priority. I believe Target has a tremendous opportunity to take the lessons learned from this incident and enhance our overall approach to data security and information technology. Bob’s history of leading transformational change positions him well to lead our continued breach responses and guide our long-term digital strategy,” said chairman, president and CEO Gregg Steinhafel.
DeRodes comes to Target with more than 40 years of experience. He has been a senior information technology adviser for the Center for CIO Leadership, the U.S. Department of Homeland Security, the U.S. Secretary of Defense and the U.S. Department of Justice. In addition, DeRodes has provided independent advisory services to corporations, private equity firms and boards. DeRodes has also held top technology positions at a number of industry-leading, multinational companies including CitiBank, USAA Federal Savings Bank, First Data, Home Depot and Delta Air Lines. He also serves on the board of directors for NCR Corporation.
“I look forward to helping shape information technology and data security at Target in the days and months ahead. It is clear to me that Target is an organization that is committed to doing whatever it takes to do right by their guests,” said DeRodes.
Since the initial confirmation of the data breach, Target has been conducting an investigation. During that time, the company has taken what it calls “significant actions” to further strengthen security across the network, including — but not limited to — the development of point-of-sale management tools, review and streamlining of network firewall rules and development of a comprehensive firewall governance process; reviewing and limiting vendor access; and a coordinated reset of 445,000 Target team member and contractor passwords, broadening the use of two-factor authentication, expansion of password vaults, disabled multiple vendor accounts, reduced privileges for certain accounts, and developing additional training related to password rotation.
Target has also deployed a new initiative as part of its accelerated transition to chip-and-PIN-enabled REDcards. Beginning in early 2015, the entire REDcard portfolio, including all Target-branded credit and debit cards, will be enabled with MasterCard’s chip-and-PIN solution. Existing co-branded cards will be reissued as MasterCard co-branded chip-and-PIN cards. Ultimately, through this initiative, all of Target’s REDcard products will be chip-and-PIN secured.
Earlier this year, Target announced an accelerated $100 million plan to move its REDcard portfolio to chip-and-PIN-enabled technology and to install supporting software and next-generation payment devices in stores. The new payment terminals will be in all 1,797 U.S. stores by this September, six months ahead of schedule. In addition, by early next year, Target will enable all REDcards with chip-and-PIN technology and begin accepting payments from all chip-enabled cards in its stores.
“Target has long been an advocate for the widespread adoption of chip-and-PIN card technology,” said John Mulligan, EVP and CFO for Target. “As we aggressively move forward to bring enhanced technology to Target, we believe it is critical that we provide our REDcard guests with the most secure payment product available. This new initiative satisfies that goal.”
$1 trillion in retail store sales thanks to digital
Digital interactions influence 36 cents of every dollar spent in the retail store, or approximately $1.1 trillion, according to the latest study from Deloitte Digital. The study also found that by the end of 2014, that number will climb to 50%, or $1.5 trillion of total store sales.
The study, "The New Digital Divide," quantifies the extent to which consumers’ use of desktop and laptop computers, tablets and smartphones influences brick-and-mortar store sales.
"Mobile and online transactions represent only a sliver of total retail revenue potential," said Kasey Lobaugh, principal, Deloitte Consulting LLP and Deloitte Digital’s chief retail innovation officer. "Retailers that narrowly focus on digital commerce — rather than the full journey that leads to a purchase — often fail to recognize how their customers shop and make decisions in the store. The result is a digital divide between what consumers do and what retailers deliver. This gap not only threatens overall revenue, but also requires retailers to reset the way they measure and invest in digital efforts."
Deloitte Digital’s data indicates that mobile-influenced sales in the store have reached $593 billion. Deloitte Digital also found that consumers using a device during their shopping journey make a purchase at a rate 40% higher than those who do not use a device. It also found a dramatic impact on traffic, spending and loyalty from digital shoppers: 84% of store visitors use their devices before or during a shopping trip; 22% of consumers spend more as a result of using digital; 75% of respondents said product information found on social channels influenced their shopping behavior and enhanced loyalty.
"Each interaction is an opportunity for a retailer to enhance the customer experience and tell its brand story," said Jeff Simpson, director, Deloitte Consulting LLP and co-author of the study. "However, retailers often measure success solely on how many widgets they sell through their web or mobile sites. For example, retailers might regard online shopping cart abandonment as a failed conversion when in reality, it may represent a customer who started their wish list in the online basket, but chose to purchase the items in the store. In that case, digital engagement may have led to a sale in the physical store. This impact is much higher when measured holistically across the organization and regardless of channels, rather than force-fitted to a single point of purchase."
The survey was commissioned by Deloitte Digital and conducted online by an independent research company between Nov. 15 and Nov. 22, 2013. The survey polled a national sample of 2,006 random consumers. Data was collected to be representative of the U.S. Census for gender, age, income and ethnicity. The national random sample and samples of smartphone owners and device owners have a margin of error of plus or minus 2-3 percentage points; the sample of tablet owners has a margin of error of plus or minus 3-4 percentage points.