Target Sales Just Shocked Wall Street. Here’s How CEO Brian Cornell Did It.

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I lead Forbes' CEO Network and cover the Forbes Under 30, technology, entrepreneurs, billionaires and Venture Capital. Podcast Host and Founder of the Forbes Opportunity Zones Summit.

As I wrote in October: To compete against Amazon, Target and other chains embraced the one resource the digital giant lacked— thousands of physical stores. Thanks to billions in tech upgrades, Cornell and his peers transformed thousands of massive stores, long viewed as expensive and fast-aging liabilities, into hyperlocal distribution hubs that are now powering in-person and digital shopping alike."A few years ago, everyone said stores were obsolete.

More speed requires more skill. Retail jobs, traditionally high in stress and low in pay, are now more challenging—and rewarding—under this new hybrid of physical and digital shopping. As Walmart's Chief People Officer Donna Morris told FORBES in October:"You can be digital, but you've got to deliver digitally with a human." As a result, after decades of neglect, workers are benefiting.

National chains like Target and Walmart are upping minimum wage for thousands of workers to $15 an hour and increasing benefits. As retail workers become critical in supplying people with food, medicine, and supplies during the pandemic, companies are upping paid sick leave, childcare, and education benefits. They are also investing in diversity and inclusion and pledging millions to support underserved communities.

 

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