Target exec chosen as new CEO of Shipt

Shipt, the grocery delivery business owned by Target Corp., on Tuesday tapped Target executive Kamau Witherspoon as its next chief executive.

Witherspoon, who has been senior vice president of operations at Target since 2018, will succeed Kelly Caruso in March. Caruso was a 22-year veteran of Target before taking charge of Shipt in early 2019.

The leadership change comes during a crucial time for Shipt after the delivery company experienced explosive growth in the pandemic but has faced rising competition since.

"Kamau's vast experience leading teams and operations at scale will help drive Shipt's continued growth and deepen the commitment to its team, partners, customers and shoppers," John Mulligan, Shipt board chairman and Target chief operating officer, said in a statement. "Under Kelly's strategic leadership, Shipt has experienced more growth than at any point in its history."

In his recent role at Target, Witherspoon was responsible for the company's operational planning and prioritization, partner operations, M&A integration and process improvement initiatives across supply chain, stores and properties.

Before that, Witherspoon served as chief restaurant excellence officer for the KFC US division of Yum! Brands and senior vice president of operational performance and readiness at UnitedHealth Group.

"The incredible growth Shipt has realized reflects the strength of its differentiated business model and the value its network of personal shoppers delivers," Witherspoon said in a statement.

After it was acquired by Target in 2017, Shipt has continued to be run independently from its company headquarters in Birmingham, Ala., though Target's influence can be seen throughout Shipt.

Witherspoon will report directly to Mulligan, a continuation of company procedure. Since Caruso was appointed to lead Shipt in 2019, the company has grown quickly, fueled by rapid adoption as customers were reluctant to go to stores themselves at the start of the pandemic.

In 2020, Shipt tripled its network of independent shoppers to 300,000. Last September, Shipt said the company saw a tripling in year-to-date orders compared to the same period in 2019.

Last year, Shipt announced its largest expansion in three years, with nearly 1,000 store locations added. It also introduced personalization options for its platform so users can enter dietary preferences and designate their favorite shoppers.

Caruso has shared with administrative staff that she believed it was the right time to step down. She has decided to spend more time with her family, travel and explore some creative passion projects. After she steps down from Shipt's leadership, she will help in an advisory role for the company until April.

"Leading the Shipt business and team has been one of the true highlights of my career," she said.

Witherspoon will relocate to Birmingham this year.