Target removes chief executive in wake of devastating cyber attack

Target has removed chairman and chief executive Gregg Steinhafel in the wake of a devastating data breach that hurt the third largest USretailer's profits, shook customer confidence in the company and prompted congressional hearings.

The departure of the 35-year company veteran also follows Target’s botched multi-billion dollar expansion into Canada.

“After extensive discussions, the board and Gregg Steinhafel have decided that now is the right time for new leadership at Target,” the company’s board said in a statement.

Mr Steinhafel had been Target’s chief executive since 2008.

The Minneapolis-based company named chief financial officer John Mulligan as interim chief executive, and Roxanne Austin, a member of Target's board of directors, as interim non-executive chair of the board.

Target’s shares fell as much as 3 per cent in morning trading.

The retailer disclosed in December that a cyber attack had resulted in the theft of at least 40 million payment card numbers and 70 million other pieces of customer data.

Mr Mulligan has been the company’s chief spokesman on the issue, testifying at several congressional hearings where he was grilled for details about Target’s security operations, how it learned of the breach and how quickly it notified the public.

Apart from the breach, Target has had to negotiate a weak retail environment.

The company’s push into Canada has also proven to be costlier than expected and sales have fallen far short of expectations. The company reported a loss of nearly $1 billion in Canada in 2013 on sales of $1.3 billion.

Overall, the company reported a 34 per cent drop in net profit last year to $1.97 billion.

The breach at Target was the second largest at a US retailer. The theft of more than 90 million credit card details over about 18 months was uncovered in 2007 at TJX Cos Inc , operator of the T.J. Maxx and Marshalls chains.

Mr Steinhafel's exit follows the departure of chief information officer Beth Jacob in March.

The company last week named high-profile information technology consultant Bob DeRodes as her replacement. . Target is still looking for a chief information security officer, a new role.

Reuters