Target and the Final Exit of Bob Ulrich (TGT, WMT)

Target Corporation (NYSE: TGT) announced this morning that its board of directors has appointed president and CEO Gregg Steinhafel as the company’s chairman of the board, effective February 1.  Steinhafel will succeed Bob Ulrich,who was given much of the credit from 2002 to 2007 when Target did so well against Wal-Mart Stores Inc. (NYSE: WMT).

Ulrich was praised for creating a better shopping experience.  But a recession changes things, and now shoppersjust have to accept the bargain shopping more than "an experience" dueto their finances.

There had been plans for Ulrich to retire from the board of directorsat the end of the 2008 fiscal year.  The company had already announced it. Ulrich ends a 41-year career with thecompany, although he will be designated as chairman emeritus.  At 65-years of age, this does not seem anything sinister.  But, again, the reaction to this would have been far different in early 2008 or in 2007.  To prove the point, we have only seen 900 shares trade hands before the open.

Lee Scott is also on the way out at Wal-Mart.  Another notorious captain is jumping ship.

Jon C. Ogg
January 15, 2009