Target to Lower Headcounts

Target Corporation (TGT - Snapshot Report), the operator of general merchandise and food discount stores in the United States , recently announced that it is lowering its headcount in the marketing department by nearly 8% or about 85 employees, as a part of its re-organizational program.

There are approximately 1,100 employees working in the marketing department. The Minneapolis-based company notified that the employees will be given full payment and all other benefits through Dec 14 of this year, and thereafter they will receive severance payment, and health care benefit for one year.

Target will also assist the affected employees in looking for new jobs. The company has been cutting jobs and reducing its inventory amid recession. Earlier, in Jan 2009, Target had eliminated 1,000 positions at its headquarters.

The discount retailers are faring better than specialty retailers, as cash-strapped consumers are trading down to cheaper brands and focusing more on necessary items. However, Target remains an exception as it derives much of its revenue from discretionary items like sporting goods and toys, home furnishings and décor, apparel and accessories.

In order to lure customers, Target has recently declared an increase in the number of freely shippable products on its website by more than 100,000. The company notified that, effective Nov 1, 2009, a customer spending $50 or more for any of these items will get the benefit of free shipping.