Retailers are gearing up for the busiest season of the year. After Macy’s (M - Free Report) and Kohl’s (KSS - Free Report) , Target Corporation (TGT - Free Report) also intends to hire seasonal workers for providing a great shopping experience to customers across its 1,839 stores. The company plans to hire around 1,20,000 associates, a 20% increase compared with the prior year.
All the workers employed after Sep 16 will get a minimum hourly wage of $12. Apart from this, seasonal employees will get other perquisites like 10% discount on products, and an additional 20% off on merchandise such as fruits, vegetables and other items. Hiring events will be organized at all Target stores from Oct 12 through Oct 14.
Holiday season is a crucial time for retailers as it accounts for a sizeable chunk of yearly revenues and profits. Retailers try to attract customers with early-hour store openings, huge discounts and promotional strategies. Clearly, gradual wage acceleration, steady job growth, improving consumer sentiment and sound economic fundamentals are working in tandem for the sector. Moreover, National Retail Federation’s projection of a tick-up in U.S. retail sales of at least 4.5% this year raises optimism.
Target, which shares space with Costco (COST - Free Report) , is deploying resources to enhance omni-channel capacities, introducing new brands, remodelling or refurbishing stores and expanding same-day delivery options to expedite the shopping process. In addition, the company adopted an aggressive cost reduction strategy, rationalization of supply chain, and technology and process improvements. With the expansion of Order Pickup and Drive Up services and increasing ship-from-store capabilities the company also felt the need to strengthen its workforce.
In fact, Target’s strategies to adapt to the fast-changing retail landscape is surely paying off well as is evident from its share price performance. So far this year, the Zacks Rank #2 (Buy) stock has surged 35% compared with the industry’s 26% growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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