The Retail Power 10
Some are entrepreneurs who built their companies from the ground up, turning one idea into a billion-dollar global empire. Some came up through the ranks, earning the trust and admiration of those around them with each passing year. And still others came in later — hired guns — bringing with them an expertise and skill set that sets them apart. All are alike in their ability to create new opportunities and take their businesses to the next level — no easy feat in today’s marketplace.
We call this select group of leaders “Retail’s Power 10.” Determined and ambitious, these executives continually look beyond the day to day and see a much larger picture. It’s that vision that helps them — and their companies — succeed in today’s fast-changing world.
To qualify for our list, we set a few simple ground rules: The individual must be chief executive of a U.S.-based retail company and be regarded as an industry leader.
Michael Duke
CEO
Wal-Mart Stores Inc.
Bentonville, Ark.
Appointed CEO of the world’s largest retail company in February 2009, Michael Duke quickly proved himself not afraid to make the tough calls, from scaling back the chain’s overambitious SKU rationalization program to reshuffling top executives. The 15-year Wal-Mart veteran (previously, he spent 23 years with Federated Department Stores and May Department Stores) is, by all accounts, low-key, friendly and unassuming, with a penchant for problem solving and strategic thinking. An industrial engineer by training and a self-confessed retailer at heart, the 60-year-old Duke loves the details of retail. Nothing escapes his attention when he makes a store visit.
A strong believer in Wal-Mart’s ability to make the world a better place to live in, Duke hasn’t shied away from social issues and has stepped up the chain’s philanthropic profile. And he has proven himself every bit as “green” as predecessor Lee Scott, launching ambitious sustainability initiatives that involve players as diverse as local farms and government and university leaders.
Although the Wal-Mart chief thrives on dealing with the nitty-gritty, he keeps his eye on the prize as he seeks out ways to grow his enormous company in a post-recession environment. Opening stores is one part of the strategy. Becoming a power player in e-commerce is another. International expansion is also key. Indeed, Duke’s drive to turn Wal-Mart into a truly global company — and the extent to which he succeeds — will likely determine his legacy and, in all likelihood, Wal-Mart’s itself.
Gregg W. Steinhafel
CEO
Target Corp.
Minneapolis
When it comes to mass merchandising that is both stylish and affordable, Gregg W. Steinhafel leads the company that has hit the bull’s eye more often than any other retailer.
Over the last 30 years, Steinhafel has progressed from a trainee in the merchandise aisles of Target Corp. to the top seat in the boardroom. He became president and CEO in May 2008, in the throes of the longest-lasting recession since WWII. Steinhafel has faced up to a number of challenges in his short tenure, from steering his company safely through the turbulent economic climate to overcoming a proxy fight with activist investor William Ackman. Through it all, he kept his focus on Target’s point of distinction: its merchandising. The decision to expand the chain’s food offerings and bring in more fresh produce has fueled rising sales.
Asked about his key accomplishments during the last couple of years, Steinhafel, 55, told Chain Store Age he is extremely proud of the “tremendous amount of resilience” demonstrated by his team throughout the economic crisis.
His vision for Target includes smaller-format stores with an edited merchandise assortment to cater to dense urban markets where real estate options are typically constrained, as well as international expansion. Within three to five years, he will likely lead Target across the border into Canada, Mexico or Latin America.
Terry Lundgren
CEO
Macy’s Inc.
Cincinnati
For all his accomplishments, Terry J. Lundgren may be best remembered for this: making the department store relevant again to American shoppers. Tall, debonair and precisely tailored, Lundgren, 58, has breathed new life into the format, updating stores and bringing in exclusive brands and celebrity names to give Macy’s an edge. From Martha Stewart’s home furnishings collections to Madonna’s Material Girl line, exclusive brands and store labels now account for some 42% of the chain’s revenues.
Long known for his fashion savvy and engaging manner, the Southern California-born executive has also emerged as a tough negotiator and determined businessman in recent years. Lundgren took heat from some shoppers when, after orchestrating Federated Department Stores’ $17 billion acquisition of May Department Stores in 2005, he went on to rebrand the entire portfolio as Macy’s (only Bloomingdale’s kept its nameplate). But he held his ground, confident in his belief that a national brand would have greater clout with vendors and designers, open up new and more compelling advertising and marketing opportunities and result in more centralized (and less costly) operations.
Lundgren was not only proved right, but he also showed his critics that local tastes can be accommodated in a national chain. In 2008 he unveiled My Macy’s, a program designed to tailor a portion of merchandise to local market preferences. The localization initiative is seen as key to Macy’s improved performance and revitalization. At press time, the year 2010 was shaping up as one of the best for the company, with its stock up considerably. Sales and profits climbed steadily in the first three quarters of the year, with same-store sales up 4.9% and total revenue up 7%.
Brian Dunn
CEO
Best Buy Co. Inc.
Richfield, Minn.
When 50-year-old Brian Dunn took the reins of the world’s largest consumer electronics chain in June 2009, the sector was in one of its biggest slumps ever. But Dunn, a Best Buy career man who started his long climb up the corporate ladder as a store associate in 1985, fought back aggressively, revamping stores at home while driving expansion abroad, re-energizing the company’s consumer-focused and employee-empowering customer-centricity model and opening Best Buy Mobile shops at malls nationwide.
More than anything else, however, it is Dunn’s “connected world” strategy, which leverages the growing interplay between televisions, computers and mobile phones, that has set the tone for his watch and B