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In the face of a predicted slowdown in retail sales growth this holiday season, Target Corp. has announced its intention to recruit approximately 100,000 seasonal employees.
What Happened: Target’s hiring strategy is consistent with its approach over the last three years. This decision is made as the retail sector prepares for the slowest holiday sales growth in 6 years, according to Deloitte data, Reuters reported on Monday.
The seasonal staff will be assigned to Target’s stores and supply chain facilities, with the majority being stationed in stores. This follows Bath & Body Works announcement last week to hire 30,000 seasonal employees, mirroring its 2023 figures.
With inflation worries looming, consumers are likely to be more cautious during the crucial shopping season. Target aims to attract value-conscious shoppers by offering more affordable holiday items, including over half of holiday toys priced under $20 and thousands of stocking stuffers under $5. Earlier this year, Target reduced prices on over 5,000 popular items, leading to a raised full-year profit forecast after reporting positive quarterly comparable sales. The company also announced the commencement of its deals week program, Target Circle, from Oct. 6.
Why It Matters: Target has been on an upward trajectory since last November, rallying nearly 77% from its October low. The company’s strong second-quarter financial results and raised outlook have fueled analyst optimism. Target has increased its full-year 2024 adjusted EPS outlook to a range of $9.00 to $9.70, up from the previous range of $8.60 to $9.60.
CNBC's "Mad Money" host Jim Cramer declared that Target is back on track after a period of struggle, following an earnings report that surpassed market expectations. This positive outlook could play a crucial role in Target’s performance during the holiday season.
Read Next:
Image via Wikimedia Commons/ Mjs92984
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Adds background and hiring plan details
Sept 16 (Reuters) - Target TGT.N said on Monday it would employ about 100,000 seasonal workers, in line with the last three years of holiday hiring, as the retailer gears up for the all-important shopping period.
Holiday retail sales are expected to grow at their slowest pace in six years, according to data from Deloitte, as persistent inflationary pressures have exhausted consumer savings and turned shoppers more frugal.
The holiday shopping season accounts for more than half of U.S. retailers' annual revenue. To lure in buyers, Target also said on Monday it would introduce more affordable holiday items and bring back its partnership with British retailer Marks & Spencer.
The retailer said the seasonal hires were for its stores and supply chain facilities, with majority of them working at its stores.
With customers expected to begin their holiday shopping early while looking for additional discounts in categories ranging from groceries to homegoods, retailers in the United States have been launching discounts and beefing up promotions.
Target also announced that its Target Circle week will start from Oct. 6, a week later compared to the last year.
Lat month, Target raised its full-year profit forecast after reporting upbeat quarterly comparable sales, betting on its price cuts that helped in lifting demand at its stores.
Bath & Body Works BBWI.N said last week that it will hire 30,000 seasonal workers for theholiday season.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Sonia Cheema and Maju Samuel)
(( AnujaBharat.Mistry@thomsonreuters.com ;))
Keywords: HOLIDAYSHOPPING-TARGET/HIRING (UPDATE 2, PIX)
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