Target is introducing bonuses and seeking to retain staff ahead of what is expected to be an unusual holiday shopping season.
Amid labor shortages affecting businesses across the United States, the retail giant will offer new benefits — both monetary and non-monetary.
According to CNN Business:
Target (TGT) said Wednesday that its turnover rate for hourly workers was lower this year compared with 2019, even after accounting for new hires. The retailer is also adding 100,000 new temporary employees to meet holiday shopping demand and offering its existing workforce five million additional hours of work during the busiest stretch of the year.
… This year, Target has been giving employees more flexible schedules and training them in different positions, Mulligan said, which has helped open up additional hours for those who want more work.
CNN Business adds that Target’s hourly bonuses will occur during expected surges in shopping:
During the holidays, Target will give $2 more per hour to store staff who work every Saturday and Sunday from November 20 to December 19, plus December 24 and December 26. Supply chain workers will receive an extra $2 an hour for two week periods they work from October 10 to December 18.
“The way we achieve our staffing goals is [to] retain the team we have,” explained Target chief operating officer John Mulligan during an earnings call on Wednesday, noting that employees’ average hours are “running significantly higher this year in comparison to past years.”
As The Daily Wire recently reported, Walmart — another retail giant and the largest private employer in the United States — is similarly optimistic ahead of the holiday season.
On Tuesday, the company reported a 9.2% increase in sales between its third quarters in 2020 and 2021, while total revenue increased 4.3% to $140.5 billion. To bypass supply chain bottlenecks affecting businesses throughout the nation, Walmart began chartering its own ships — resulting in 11.5% higher inventory levels.
Like Target, Walmart is also attempting to hire 150,000 workers to deal with holiday demand.
“Our momentum continues with strong sales and profit growth globally. Our omni-channel focus is pushing digital penetration to record levels,” explained Walmart chief executive Doug McMillon. “We gained market share in grocery in the U.S., and more customers and members are returning to our stores and clubs around the world. Looking ahead, we have the people, the products, and the prices to deliver a great holiday season for our customers and members.”
Amid a high-inflation environment, consumer-facing brands have been able to remain profitable by raising prices. Through this tactic, Tyson Foods — the second-largest meat and poultry producer in the United States — saw improved margins in their most recent quarter.
“The inflation we incur needs to be passed on,” explained Tyson chief financial officer Stewart Glendinning. “Some of the inflation for us has been substantial.”
On Tuesday, the United States Census Bureau revealed that American retail and food services sales rose by 1.7% between September and October. Between August and September, sales rose by 15.4% from the same period last year.