The woman who put the “T” in Tarjay is stepping down from her role as chief merchandising officer and adding some uncertainty about the retailer’s direction under the leadership of chairman and CEO Brian Cornell.
Kathee Tesija, executive vice president, chief merchandising and supply chain officer at Target, is stepping down from that position effective July 6 with no successor immediately named. She will remain with the company in an advisory capacity for a year and an internal and external search is underway for her successor.
Her departure is hardly surprising considering Target has undergone a significant senior leadership transformation and strategic shift since Brian Cornell became chairman and CEO in August 2014 to replaced former Chairman, President and CEO Gregg Steinhafel who left the company earlier that year in the aftermath of the 2013 holiday season data breach.
During her 30 year career, Tesija worked closely with Steinhafel. She, more than any other Target executive during the past decade, helped articulate what the company’s “expect more, pay less” brand promise looked like to shoppers when they visited Target stores or Target.com.
By offering a relentlessly differentiated product assortment and striking deals with established and emerging designers, Tesija and the merchant team she led ensured Target was a destination for the fashionable and cost conscious regardless of the product category.
Her departure comes amid an ongoing transformation and leadership change over at Target that has seen the company abruptly exit Canada and restructure to eliminate management layers at its home office, a move designed to accelerate decision-making.
The company is also looking to embark on a new food strategy, full details of which have yet to be revealed, and recently sold its pharmacy business to CVS Health in an unconventional deal that creates an unusual competitive dynamic for Target’s related health care product categories.
Against this backdrop and considering how closely aligned Tesija was with Cornell’s predecessor, it would not be unreasonable to imagine the two had some philosophical differences about Target’s path forward. Nevertheless, Cornell had kind words to share regarding Tesija’s contributions to Target’s success.
“During Kathee’s nearly 30-year career at Target, she has earned a reputation as an outstanding merchant and business leader who has been instrumental in Target’s growth and our recent efforts to regain our momentum,” Cornell said. “Her leadership and countless contributions helped establish Target as one of America’s favorite retailers. Over the past several months, Kathee and I have had many discussions about the business and together have decided that it is the right time for her to transition to an advisory role.”
Cornell said Tesija’s will spend the next few months contributing to key enterprise initiatives and ensuring a smooth transition of her responsibilities while a successor is located.
“On behalf of the entire Target team, I want to thank Kathee for all she has done on behalf of our company, brand, and team,” Cornell said.