In a widely anticipated move, Target Corp. said Wednesday that Bob Ulrich will retire as chief executive effective May 1 and will hand over the reins to President Gregg Steinhafel. Ulrich, who will reach the company's mandatory retirement age of 65 in April, will remain as board chairman through Jan. 31, 2009, when the company's 2008 fiscal year ends.
Neither executive was available for comment Wednesday.
Steinhafel takes the helm at a challenging time for Target and other retailers as consumers curb spending in the face of higher prices for food and fuel combined with tighter credit. The stock has been trading at 52-week lows and is down nearly 30 percent from July highs of more than $70 per share. It closed Wednesday at $49.92.
December holiday sales figures will be released today, and analysts expect sales to fall 2 to 5 percent.
Target telegraphed its succession plans in 1999 when it promoted Steinhafel to president and then again last year when it named him to the board of directors. Known as the company's top "style cop," Steinhafel, 52, has deep roots as a merchandiser.
Target did not indicate when it would name Steinhafel's replacement as president.
Retail analysts don't expect any major shifts in the discount retailer's direction.
"This seems to be one of the smoothest transitions in the last several years among large retailers," said Jeff Klinefelter, an analyst with Piper Jaffray & Co. in Minneapolis. "There was seemingly never any controversy, no serious debate, no horse race between the candidates. It was a smooth, deliberate, gradual transition."