Target hires an Amazon vet to manage its supply chain
February 29, 2016 03:48 PM
Target Corp. has hired an Amazon.com Inc. veteran to head its supply chain operations.
Target, No. 16 in the Internet Retailer 2015 Top 500 Guide, hired Arthur Valdez as its executive vice president and chief supply chain and logistics officer. Valdez, who starts March 28 at Target’s headquarters in Minneapolis, had been with Amazon (No. 1 in the Top 500) since September 1999, starting as director of operations and rising to his most recent position as vice president of operations.
In announcing the hire, Valdez’s new boss, Target chief operating officer John Mulligan, indicated that the e-commerce veteran’s goal will be to strengthen the marriage between the retailer’s digital and physical operations.
“Arthur’s leadership and experience will be a tremendous asset as we continue to drive improvements in end-to-end processes, including leveraging our almost 1,800 stores to deliver a seamless experience for our guests,” he said.
Valdez’s hiring comes a week after Target reported a 31% year-over-year spike in online sales in fiscal 2015, with e-commerce accounting for 3.4% of overall sales, up from 2.6% in 2014.
On Target’s Q4 2015 earnings call, Mulligan cited the increasing use of the retailer’s retail locations to fulfill online orders during the holiday shopping season.
“We have been building our flexible fulfillment capabilities for several years, and this holiday season highlighted the power of these capabilities to serve our guests and drive business performance,” he told analysts on the call, according to a transcript from Seeking Alpha. “Even though the traditional view of Cyber Monday doesn't even include brick-and-mortar, Target stores set an all-time record for order pickup on that day with more than four times the volume compared with last year.”