Target Ceo Resigns 5 Months After Holiday Data Breach

[psycopk]

 

The embarrassing computer attack and weak sales at a critical time shined a harsher light on other stumbles under Steinhafel’s six years as CEO, including a money losing expansion into Canada and a persistent weakness in traffic as shoppers moved online.

Steinhafel’s resignation leaves a void at the top of one of the largest U.S. retailers at a time of deep change in shopping habits, a weak economic recovery, especially among low-income shoppers, and questions over whether internal failures at Target made it an easy target for the data thieves.

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Steinhafel, 59 years old, will step down immediately and be replaced on an interim basis by Chief Financial Officer John Mulligan while Target TGT -3.35%  seeks a new chief, the company said. Roxanne Austin, a current board member, will take over Steinhafel’s chairman role, also on an interim basis.

Target spokeswoman Dustee Jenkins said Steinhafel’s decision to step down was just made recently after extensive discussions.

Target’s board has been meeting monthly since the data breach, where 40 million credit and debit cards and personal information of 70 million people was stolen, was disclosed in mid-December.