Dive Temporary:
- Goal introduced Thursday that Jim Lee is the corporate’s new chief monetary officer, efficient Sunday. Lee, who might be a member of Goal’s management crew, will oversee accounting, investor relations, and monetary planning and evaluation, amongst different issues, the corporate stated in a press launch.
- He’ll change Chief Working Officer Michael Fiddelke, who had served as CFO since 2019 and was named COO in February. Fiddelke will now serve solely as COO. Fiddelke took on the twin position following the retirement of former COO John Mulligan.
- Lee joins Goal from PepsiCo, the place he labored for over 25 years in numerous roles. In his most up-to-date place as deputy chief monetary officer, his tasks included main the finance groups for PepsiCo’s worldwide enterprise and overseeing tax, investor relations and different features.
Dive Perception:
Lee joins Goal a month after the retailer noticed second-quarter gross sales rise 2.6% to $25 billion, up from $24.4 billion final yr. Each shops and digital channels noticed development, with drive up alone producing $2 billion throughout Q2.
“With many years main core finance features and nurturing development, Jim will complement the sturdy and tenured management presently in place on our finance crew,” CEO Brian Cornell stated in an announcement.
Lee’s compensation bundle consists of an annual base wage of $850,000. It additionally features a prorated annual money incentive of as much as 100% of the bottom wage, together with stock-based awards and a money sign-on bonus of $2.2 million. Lee will even obtain an award of inventory with a goal worth of almost $7 million in consideration for compensation left on the desk at his prior employer, in accordance with a regulatory submitting with the U.S. Securities and Alternate Fee.
In an organization weblog publish highlighting his appointment, Lee stated he’s excited to pivot from the patron merchandise business to retail. Lee additionally stated he’s been strolling shops in current weeks, taking psychological notes on issues he’d prefer to study extra about, together with what drives shopper loyalty for the big-box model and its shops.
“I’m a lifelong Goal shopper and a giant believer in the place Goal is headed as an organization,” Lee stated. “I feel its aggressive benefits — from the worth and differentiation it gives by way of issues like its owned manufacturers to a procuring expertise that generates such loyalty from its visitors — are a powerful basis for outsized development.”
Throughout a March monetary neighborhood assembly, Fiddelke stated the corporate was targeted on three development drivers – comparable gross sales, new shops and different income, with comps anticipated to function a major supply of development. Over the subsequent decade, Fiddelke stated, the corporate expects its whole income to develop by a median fee of about 4% a yr, in accordance with an occasion transcript. If that aim involves fruition, Fiddelke stated Goal will add greater than $50 billion of income on prime of the $107 billion it delivered in 2023.
Lee is approaching board simply forward of the essential vacation season. Earlier this week, the corporate introduced a number of operational and merchandising initiatives. They embody the return of Goal Circle Week from Oct. 6 by way of Oct. 12, a aim of hiring about 100,000 seasonal in-store and provide chain staff, and plans to supply a vacation assortment that’s 50% bigger than final yr.