Retail giant Target announced on Tuesday its plan to recruit nearly 100,000 employees for the upcoming holiday season, maintaining a consistent hiring trend over the past two years. The company is also set to roll out a series of price cuts and discounts starting in October, aiming to entice shoppers grappling with rising inflation.
With weak consumer spending and a precarious US economy looming over the horizon, industry experts anticipate a significant impact on this pivotal shopping period. Research firms predict a sales growth rate roughly half of what was observed in 2019. According to a recent report by Mastercard, U.S. retail sales are projected to see a modest 3.7% increase from November to December 24, compared to the robust 7.6% surge recorded in the previous year.
In contrast, online retail behemoth Amazon disclosed plans to hire a substantial 150,000 personnel for its holiday season operations in the preceding year, while retail powerhouse Walmart pledged to add 40,000 workers to seasonal and full-time positions. This year, Macy’s has indicated intentions to bring on board approximately 38,000 seasonal workers, both full and part-time, a slight dip from the 41,000 employees hired in 2022.
In a strategic move to lure customers back into physical stores, Target’s Chief Executive Brian Cornell unveiled a plan to introduce an array of products priced under $25, spanning categories like apparel, home goods, and essentials. Additionally, the corporation will kickstart a “Deal of the Day” initiative in October. These initiatives are a direct response to major shopping events, including Amazon’s two-day Prime Day (October 10-11) and Best Buy’s 48-hour flash sale scheduled for the same week.
Steve Sadove, Senior Adviser for Mastercard, posited that modern shoppers are likely to exhibit heightened selectivity, prioritizing value-driven purchases. The upcoming holiday season is anticipated to serve as a litmus test for retail giants, grappling with myriad challenges stemming from the persistent pandemic.
Undeterred by the challenges at hand, Target stands firm in its pledge to offer unmatched bargains for budget-savvy shoppers this holiday season. With the year-end festivities fast approaching, the retail landscape paints a gloomy picture for the industry. Yet, as companies demonstrate their agility in navigating the present circumstances, the future may hold more promise than initially foreseen.
Source: Reuters
