Target Hires First CEO From Outside the Company

Hoping to rebound from recent hack attacks, Target taps former PepsiCo executive, Brian Cornell, to be its new CEO.
5:00 | 07/31/14

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Transcript for Target Hires First CEO From Outside the Company
Okay. It is Thursday July 31 and York financial markets are open -- today's big numbers don't look too big there it's zero. I don't know why it. That is how many -- CEOs target has hired from outside the company. That is until today. I'm Dan Butler in New York tells a target sprint CEO Jeff back out on his join us on this Thursday morning. Mr. MacKey give us the details on this one I mean big number obviously not very president's era but a change in that regard there. Well and fifty odd years of existence targets managed to kind of grown talent from within. They got so screwed up -- the last -- they decided to go to the outside is on the fourth CEO at target. Since 1984. So we got more president sends them we got more a lot of things sends them but a man named Brian Cornell common and is gonna try to right their ship after the credit card debacle after sales declines at general loss of faith of the customer base. He's got a big job ahead of him. And he is replacing -- He is replacing Greg Stein -- who was good he was -- On -- basically there was a porch a mutiny some three months ago where are reportedly top exact at the firm. Wit to the board directors and said its hand more Roscoe someone's got to grow the company had lost confidence in him so they've been running with a temporary city over the last three months. That's I was kind of Dicey bet this -- the new guy seems like he's got the credentials is -- ten year Pepsi exact. And he also -- Sam's clubs to Wal-Mart for three years before at bats are certainly knows -- consumer products. What Hillary has his -- we'll we'll we'll talk immigrant from -- So with just about that botched data security thing was that kind of Pastrana broke the camel's back or has and -- target's up and doing all that well over the past couple of years. Well they would target somehow -- to lose one point six billion and counting and -- expansion into Canada. Which was pretty well botched soup to -- target grew over the years there -- -- Smart store count basis -- Wal-Mart but they grew. Carefully and meticulously depict the real estate and exact spots and then for the Canadian expansion they bought more than a hundred stores all in one fell swoop. Not many of which seem to fit the target model and so that's been just a disaster they evidently get that right. And so it was probably as straw that broke the camel's back you know -- as we've discussed before other retailers have been hit by these hacking attacks. And the CRs have survived but this was just kind of too much. They'd lost confidence they have they figured they needed to change at the top the company got a little insular and sometimes -- -- good. Yeah that's very that's -- is it should it look like and -- obviously the big number being zero and that view as you pointed out. They had been sort of grooming and elevating people throughout the company all those years so -- -- Brian Cornell he was at PepsiCo at Sam's Club. He was at PepsiCo's at Sam's Club -- five years old so we comes in China revved up -- this is a controversial choice. Given that in time you're gonna change things up to this degree by bringing -- an outsider. Again the preferred way Abrams down as is to bring it up with it from within so they understand the way the company works in this case. They needed the culture not to work the way it's worked so he's coming and -- with really a clean slate it's a nice opportunity -- to be as aggressive as possible. But it is a concern to folks who like target because of the -- shake cachet that they've had. In fashion and other goods there's some murmuring he's going on. That may -- that -- experience along with Sam's Club. Is gonna perhaps be a towel that mr. Cornell is going to move target further in the direction -- being just appeared discount -- Rather than bring in folks in for affordable fashion which they did so well with -- appeared in the 80s90s right. -- opposite that but the competitive marketplace you know certainly push -- aside -- it. The list -- -- kind of on a side note that what about PepsiCo what's going on because -- that's a huge company and at the -- has -- doing relatively well. And has been doing relatively well and that's why -- your 55 year old a glass of exact. You're looking around a company is -- wants to be an alpha dog and if you're not the alpha dog pound -- that the -- at the head of the sled. Your view never changes as they say so he wanted to have kind of -- a cleaner turf and so you into the outside to see this a lot over America. -- -- -- just don't do well and so he was -- in terms of his career to an outstanding opportunity to take over a really excellent franchise that's been down odds lock. Some of the things that he's gonna have to do our largest basic blocking and tackling get the company re motivated -- Boy it's a it's a nice core asset there's -- relieved that wrong fundamentally with target we're not talking about Kmart RadioShack here they're not desperate straits they've just been lagging. Or your favorite JC Penney -- all the time we like to talk about JC -- and we'll have to wait and see -- mr. courthouse got a really hit the target on this one. -- high eighties so I think you well I think he didn't direct it's the end of the week well I can mister -- for rattled -- it thank you -- have a -- Thursday you to do you -- keep of the latest headlines right here at -- -- -- the big number I'm Dan -- New York.

This transcript has been automatically generated and may not be 100% accurate.

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