Recommended Reading - Target's inner circle - Fortune

Jennifer Reingold wrote a terrific story for Fortune entitled, Target's inner circle, published March 18. The story examines the unusual approach the, soon-to-be-retired, CEO of Target TGT (NYSE), Robert Ulrich (earlier blog) and his long time number two, and soon-to-be successor, Greg Steinhafel have followed to manage the company. According to Reingold,

...Ulrich has transformed a Midwestern discounter into one of the most admired and imitated companies in the world. Target now ranks 33rd on the Fortune 500 - making it bigger than Microsoft, Pfizer, and PepsiCo, and more than double the size of Cisco Systems.

...Though everyone knows Target (TGT, Fortune 500), hardly anyone's even heard of Ulrich. ...Even Ulrich's own employees often don't recognize him during his twice-monthly store walks, when he strolls the aisles dressed in Target's standard red shirt and khakis. Neither he nor his company has ever before graced the cover of a major magazine - highly unusual for a corporation its size. In fact, Ulrich has deliberately stayed so far under the radar that Bob Thacker, a former Target marketing executive now at OfficeMax, dubbed him the "silent Sam Walton." Says Thacker: "He has no public persona."

In a world of high profile CEOs, Ulrich's approach is refreshing and overall has been quite successful.

Check it out.

Addendum to Previous Post on Target

Alexandra Biesada of Hoover's Bizmology had a different take on my previous blog post on Isaac Mizrahi's departure from Target and move to Liz Claiborne. Biesada suggested,

Great news for Liz, but bad for Target? Maybe not.

... (Referring to the appointment of Steinhafel as new CEO) Surely he has some ideas up his sleeve. (The industry buzz says Target has UK fashion designer Jonathan Saunders waiting in the wings as its next GO International designer.)

So rather than look at Mizrahi’s pending departure as a loss for Target, consider it an opportunity for the chain — which lately appears to have lost its way — to shake things up in the fashion aisle.

You decide.

Target Undergoes Double Whammy in One Month

Target TGT (NYSE) seems to be having a tough month. First the company announces slower sales and anticipates slower sales going forward. This is all taking place while Pershing Square Capital, run by hedge fund activist William Ackman, amassed nearly 10% of the company's stock and continues place pressure on management. Then in early January, the company announces its long time and successful CEO, Bob Ulrich, will resign as CEO on May 1, 2008. Ulrich will remain chairman until the end of fiscal 2008. In his place, the company promoted Greg Steinhafel, the current president, to be the new CEO. Now comes news that well known creative designer Isaac Mizrahi, who has been so important in Target's success will be leaving Target to help revive Liz Claiborne. According to NPR's Marketplace,

The retailer apparently tried hard to keep the cheap-chic designer but wasn't willing to match Claiborne's offer.

Let's hope Steinhafel has something up his sleeve to help the company.

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