Target taps Jeff England as supply chief

Target has hired former Walmart executive Jeff England to run its global supply chain and logistics operation as Chief Executive Michael Fiddelke pushes a broader turnaround at the retailer. The appointment, announced May 19, takes effect May 31, and England will report to Lisa Roath, Target’s chief merchandising officer. The move comes as Target tries to improve in-stock levels, fulfillment speed and cost discipline while sales and store traffic remain under pressure. Investors are watching whether those operating fixes can hold as the company works through a prolonged demand slump. ### Who is Jeff England, and why did Target hire him now? Jeff England spent 18 years at Walmart, where he held senior supply-chain and operations roles before leaving for other retail leadership posts, according to Target’s announcement and Reuters. Target said England will become executive vice president and chief global supply chain and logistics officer on May 31. Reuters reported the hire is part of Fiddelke’s effort to bolster management as he seeks to restore sales growth after several weak quarters. (corporate.target.com) Michael Fiddelke said in Target’s release that supply-chain capability is central to the company’s “next phase of growth.” The company said England’s remit includes its end-to-end supply chain and logistics network, covering inventory flow and fulfillment across stores and digital operations. (corporate.target.com) ### Why is supply chain such a focal point for Target’s turnaround? Target has tied part of its recent margin improvement to lower inventory shrink and supply-chain gains, according to coverage of its latest results. PYMNTS reported gross margin improved to 26.6% from 26.2%, citing lower shrink and supply-chain improvements. That gives management a measurable operating gain even as demand remains soft. (corporate.target.com) CNBC reported that Target is still dealing with lower customer traffic and a sales slump despite management’s turnaround efforts. Reuters said Fiddelke, who became chief executive in February, has pledged to turn around the company after several quarters of weak sales. The combination has put extra weight on execution inside stores, distribution and fulfillment. (pymnts.com) ### If margins improved, why are investors still focused on traffic? Target’s recent results showed that margin repair and customer demand have not moved together. PYMNTS said the company recorded a 13th straight quarter of declining sales, while CNBC reported continued traffic weakness. That means operational improvements have not yet produced a return to sustained customer growth. (money.usnews.com) Investing.com reported that investors are watching gross margin trends and inventory management for signs that markdown pressure is easing and merchandise is becoming more relevant. That scrutiny has centered on whether recent gains reflect durable execution improvements or a shorter-term repair in expenses and shrink. (pymnts.com) ### What does England’s appointment change inside the company? Lisa Roath will be England’s direct manager, according to Target’s May 19 statement, placing the role close to merchandising decisions as well as logistics execution. That structure links product flow, inventory planning and in-stock performance more directly to the merchandise strategy that Target is trying to sharpen. (investing.com) The company said England’s start date is May 31. Reuters reported the hire as part of a management build-out under Fiddelke, who is trying to improve efficiency while reversing weak sales. ### What comes next for Target and for investors following the stock? May 31 is the first concrete date in the changeover, when England is due to assume the supply-chain post. (corporate.target.com) Investors will then look to future quarterly updates from Fiddelke, Roath and England for evidence on traffic, inventory flow, in-stock levels and margin performance. Target said England will join the company at the end of May, giving the retailer a new operations chief ahead of its next reporting cycle. (money.usnews.com)