Target (NYSE:TGT)said Thursday that it is taking a different staffing approach this holiday season as it gears up for a rush of shoppers at stores and on its website: It will trim back seasonal hires and give more hours to existing employees.
In all, the discounter said it expects current store staff — about 300,000 people in total — will work 5 million more hours during the holiday season. That translates into more than $75 million of additional pay, it said.
Target still plans to hire about 100,000 seasonal employees — but that’s smaller than the more than 130,000 that it hired for each of the past two holiday seasons, the company said.
The big-box retailer, which has more than 1,900 stores and about 350,000 employees, launched an app this summer that makes it easier for store workers to pick up an occasional shift. It allows staff to choose times or swap hours on demand, adjusting for other obligations like parenting or attending a college class.
"The pandemic highlighted our team members’ needs for flexibility," said Target’s chief human resource officer, Melissa Kremer.
Retailers, including Target, are preparing for a holiday season that’s expected to be both busy and riddled with complications. Sales in November and December are projected to grow at least 7% year over year, according to three different forecasts by Bain & Co. Deloitte and Mastercard SpendingPulse.
However, industry analysts say customers should expect to see fewer deals, more out-of-stocks and shipping delays as pandemic-fueled supply chain challenges ripple across the globe.
TGT shares grabbed $2.28 to $244.05.
