Target national sales meeting part pep rally, part introspection

Is holiday shopping really just right around the corner? For retailers like Target, it is.

Some 13,000 red-shirted Target store and corporate headquarters employees packed Target Center in downtown Minneapolis Wednesday for a combination pep rally, party and critical self-examination of Target's performance and future during its annual national sales meeting.

CEO Brian Cornell got a warm reception from his troops. He said there have been a lot of tough decisions in the past year, notably Target's withdrawal from Canada and the dismissal of thousands of employees.

"I know for everyone here it's been a challenge," he said. "The change has been tough. But I hope we all recognize it's absolutely the right thing for the business. It's going to allow us to be more agile, make quicker decisions and unlock growth."

The CEO said the company's sales, customer traffic, stock price and other vital signs are much better now and that Target has turned the corner in its transformation.

But Cornell said Target must improve its performance on several retail fundamentals, especially keeping stores better stocked with the essential items customers expect to find.

"We got to make sure we can fix out-of-stocks, particularly on core essential items," he said.

As he said it, huge screens behind Cornell flashed photos of empty shelves at Target stores.

"I know today that on everyone's mobile device, you've got one of these pictures," he said. "I see them all the time."

Cornell apologized to store staff for not paying enough attention to retail fundamentals and vowed that's going to change.

"Some elements simply don't work the way they should.," he said.

Despite the challenges, Cornell says he wants to raise spirits at Target: "I want this to be a fun place to work, some place you're proud of. A place where you get energy and you're enthusiastic each and every day and you feel good about what you're doing."

The sales event itself is a big deal, and meant to be a lot of fun. This year's entertainment featured Shakira, Luke Bryan, Florida Georgia Line and Imagine Dragons. There was also a Target-themed quiz featuring Paula Poundstone, and other panelists from public radio's "Wait, Wait ... Don't Tell Me!" quiz show.

But there was business talk, too.

Chief Operating Officer John Mulligan said Target's distribution network must be transformed to better serve customers when, where and how they want — in stores and online — providing them with everything from in-store pickup to same-day home deliveries.

"Our core operations must keep pace with new ways of serving our guests, the ways our guests want to interact with us," Mulligan said.

He said Target is now more in control of its future.

"We're not sitting back on our heels, doing what we've always done, resting on what used to work so well," he said.

Target plans to transform 25 of its Los Angeles stores with some new ideas, including shopper advisors, curbside pickup and Ikea-like floor displays that feature fully decorated living spaces. Target says it wants to see what happens when stores pull together all the experiments tried in individual stores.

Target is also developing a concept store at an undetermined location. The retailer said the store would be the "ultimate blend of the physical and digital."