Target will reportedly double bonuses for salaried employees this year in a show of financial strength, despite a tough year for the retailer, which reported declines in store traffic and same-store sales for the first time since before the pandemic. There is.
Target plans to pay employees 100% of their eligible bonuses in 2023, an increase of 50% from the previous year, said a person familiar with the matter, speaking on condition of anonymity. bloomberg.
The Minneapolis-based chain has more than 415,000 employees, most of them hourly and distribution center workers. However, it is unclear how many people will be affected by the bonus increase.
The increased pay does not apply to hourly employees, and senior executives have a separate bonus structure, several people told Bloomberg.
According to Bloomberg, the cash bonus will be paid at the end of March.
“The bonus structure is based on goals established at the beginning of the fiscal year and also includes sales and profit results,” a Target spokesperson told the Post.
“We will reward our teams accordingly based on their 2023 target performance, including the team’s achievement of $2 billion in additional profit growth above the goals we set at the beginning of the year,” the spokesperson added.
The move comes as Target seeks to combat three consecutive quarters of declining sales. However, the company reported earlier this month that it made more profit in the fourth quarter of 2023 than in the same period last year, thanks to an increased inventory of discounted stocks.
The company blamed strong Black Friday and Cyber Monday spending for the three months ending December 31, 2023, as shoppers gravitated to newly launched collections, including Kendra Scott jewelry and its private label Figmint range. It added that the company boosted sales in the holiday quarter during the month. kitchen utensils.
Target also recently revealed its least expensive brands that aren’t appealing to customers fed up with inflation. The in-house brand is called “Dealworthy,” and it consists of a product line that mostly costs less than $10, 50 percent cheaper than other brands sold at Target, which has about 1,900 stores nationwide.
Many of the more than 400 items that make up Dealworthy, which will be released throughout 2024, are priced at less than $1.
Target has rolled out a paid membership program to rival Walmart’s Plus membership and Amazon Prime for customers with more cash.
For five weeks starting April 7, the Target Circle 360 program will launch at a special membership price of $49 per year, allowing shoppers to get same-day delivery on orders of $35 or more, Target revealed in its latest earnings report. did.
After five weeks of special sales, Target Circle 360 is offering shoppers $99 a year, plus an annual birthday gift, free shipping, an extra 30 days to return items beyond the standard 90-day return policy, and more. make you available for benefits.
For reference, an Amazon Prime membership costs $139 per year and a Walmart Plus membership costs $98 per year.
