Target is hiring 130,000 seasonal workers as the holiday approaches and the company adjusts to new shopping habits.
Target employees will work on same-day curbside and in-store pickup of online orders compared with the first six months of 2020.
More workers will man the distribution centers compared with the last holiday season to keep the stores full of the most popular items.
Some Target employees will be in charge of cleaning and safety. Workers will be cross-trained so they can shift from one task to another as needed, from disinfecting shopping carts to assisting at curbside pickup during peak hours.
According to Target CEO Brian Cornell, its approach to staffing and serving customers over the holidays will promote flexibility. He expects “certain trends from earlier this year will continue during the holiday season,” such as customers aiming to feel safe at stores and looking for good value.
“Certainly, we continue to see the guests gravitate towards the ease and convenience and contact-free ways to shop through our digital channels,” he stressed.
Holiday sales are expected to increase slightly this year based on holiday forecasts. Consumers are believed to be responding to an uncertain economy or pulling back due to the recession.
Consulting firm Deloitte sees holiday sales increasing by 1% to 1.5% this year but noted it may change based on the willingness of high-income consumers to splurge and whether lower-income families control their spending.
Cornell refused to offer a prediction for the usually busy shopping season. However, he stressed the retailer will make changes due to the pandemic, such as starting holiday deals in October.
“We do expect this to be a very different holiday season,” he said. “We expect guests to start shopping earlier and shop throughout the season. We’re not expecting long lines on Black Friday morning. But we certainly expect a very engaged consumer and a Target guest who’s looking forward to celebrating the holiday season.”
Meanwhile, Target’s chief human resources officer, Melissa Kremer, explained that current Target employees can work additional hours and perform duties outside of their usual department, such as responding to online orders. Over 90% of the retailer’s online orders are processed at stores.
Last year, Target signed up 130,000 seasonal workers for the holidays, an increase from 120,000 workers in 2018. Around 40% of the new workers are retained as employees.
Target recorded bigger sales during the pandemic, particularly in the second quarter, which ended Aug. 1.
Target sales
Target sales increased by 80% amidst the coronavirus pandemic, beating the forecast of Wall Street for its fiscal second quarter.
Target attracted millions of new customers online and established a record for same-store sales that pushed profits up by 80.3% to $1.7 billion.
Sales online and at stores operating for at least a year rose by 24.3% during the quarter ended Aug. 1. Meanwhile, same-store sales increased by 10.9% while the company’s digital sales almost tripled from a year earlier. Shares rose by about 11% Wednesday morning.
According to CEO Brian Cornell, their mix of merchandise and online options matched the needs of customers who looked for safe and convenient ways to make purchases amidst the coronavirus pandemic. Target is deemed an essential retailer during lockdowns in the US.
“Throughout the year and over the last few years, we’ve built tremendous trust with the guest,” he said on the call. He said that relationship with customers has “been one of the big drivers behind our success.”
