How Target’s New CEO is Working to Regain Customers’ Trust NORAH O'DONNELL: Target is trying to regain customer trust and its signature style after last year's data theft nightmare. Target, or Tarjay's, new CEO, the first from outside the company, took over last month. And Ben Tracy sat down with him for an interview you'll see only on CBS This Morning. [Brian Cornell speaking to a large audience] BRIAN CORNELL: The future of Target-- well, it has to start with growth. We will become a growth company. [CHEERING] BEN TRACY: When Target's new CEO, Brian Cornell, spoke to 14,000 of his employees in Minneapolis this week, he was honest. He said, the company had missed the mark with shoppers. BRIAN CORNELL: We need to be cool again. BEN TRACY: Target was once known for cheap chic-- affordable yet fashionable clothes and housewares-- but then started focusing on groceries and competing with Walmart on price. How did Target lose its cool? BRIAN CORNELL: Well, I think we become cool again by really understanding trends, understanding where the guest is going, and really anticipating and meeting their needs. I'll go back to the core brand positioning-- expect more, pay less. And it's making sure there's always that balance, and we might have tipped the balance towards pay less. BEN TRACY: Like Home Depot, Target is rethinking the security of its customers' personal information. Last year, hackers stole 40 million debit and credit card numbers. That sent shoppers fleeing and profits tumbling, down 62% from the year before. He says data security is a top priority. Why did it take an event like that for the company to get so serious about data security? BRIAN CORNELL: I think the company's always been serious about data security, but I think we all realize this is a significant retail issue today. And we've all got to step up. I wake up every single day thinking about data security. So it is a major priority for us. For me, for our leadership team, for our board, we recognize how important that is. BEN TRACY: Target is the nation's fourth largest retailer, behind Walmart, Kroger, and Costco. It's now also competing with Amazon. That's why Target has launched a startup tech firm inside its headquarters to create apps and improve its website, which now accounts for less than 3% of sales. About 2% to 3% of your sales are done online. Does it need to be more than that? BRIAN CORNELL: Going forward, we really believe mobile will be the front door of our brand. More and more, I see moms shopping our stores with a cart in one hand, usually with a child inside the cart, but in their other hand, they've got this smartphone. And it's guiding a lot of their choices. BEN TRACY: The company is making choices, too. They're launching a new concept called Target Express-- stores 1/6 the size of a normal one. BRIAN CORNELL: Well, it's really meeting the needs of our guests in these urban centers. BEN TRACY: Target is also trying to get its fashion mojo back, partnering with Tom's Shoes and fashion designer Joseph Altuzarra. MAN: Hi, Mr. Cornell. BRIAN CORNELL: How are you? Brian. MAN: How are you, Brian? A pleasure. Mike-- BEN TRACY: Cornell is spending time meeting employees and seems to be quickly boosting morale. Is there one or two things you would really like to accomplish in the next year that you would say this has been a success? BRIAN CORNELL: I hope your reporting, I hope others are writing about the fact that Target's back. BEN TRACY: For CBS This Morning, Ben Tracy, Minneapolis. HOST: We have to tell Mr. Cornell-- I didn't know that they are left anywhere. I didn't know they had lost their cool. We were all talking about-- we all loved it. Is there anybody doesn't like Target? NORAH O'DONNELL: Tarjay. HOST: But it's good.