As retailers brace for a potential slowdown in holiday sales growth this year, Target Corp. (TGT) is making a bold move: hiring 100,000 seasonal employees. This hiring strategy, consistent with Target’s approach over the past three years, comes as the retail sector prepares for the slowest holiday sales growth in six years, according to Deloitte data.
The majority of these seasonal workers will be stationed in Target’s stores, with some also assigned to its supply chain facilities. This move follows Bath & Body Works’ (BBWI) announcement last week to hire 30,000 seasonal employees, matching its 2023 figures.
With inflation concerns looming, consumers are likely to be more cautious during this crucial shopping season. Target is aiming to attract value-conscious shoppers by offering more affordable holiday items, including over half of its holiday toys priced under $20 and thousands of stocking stuffers under $5.
Earlier this year, Target reduced prices on over 5,000 popular items, which led 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 October 6th.
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.
