Defying economic uncertainty, retail powerhouse Target declared on Tuesday its intention to employ nearly 100,000 seasonal workers for the upcoming holiday season, mirroring its hiring approach of the past two years. In a strategic move, the U.S. retail giant also unveiled a plan to implement price reductions and discounts starting October, aiming to lure budget-conscious shoppers grappling with inflation.
Amidst subdued consumer spending and a wavering U.S. economy, industry analysts project significant ramifications for this pivotal shopping period, with sales growth anticipated to dwindle to nearly half the rate witnessed in 2019, according to research firms. A recent report from Mastercard outlined a forecast of a 3.7% rise in U.S. retail sales from November to December 24, a notable contrast to the robust 7.6% surge recorded in 2022.
In comparison, online retail behemoth Amazon disclosed plans to onboard 150,000 employees for its holiday season operations in the previous year, while retail titan Walmart committed to adding 40,000 personnel across seasonal and full-time roles. For the current year, Macy’s announced intentions to hire approximately 38,000 seasonal workers, comprising both full and part-time positions, marking a slight dip from the 41,000 employees brought on board in 2022.
In a bid to reinvigorate foot traffic in stores, Target’s Chief Executive, Brian Cornell, revealed the corporation’s strategy to introduce an array of products priced under $25, spanning categories like apparel, home goods, and essentials. Additionally, the company will inaugurate a “Deal of the Day” program in October. These initiatives serve as a direct response to major shopping events, including Amazon’s two-day Prime Day (scheduled for October 10-11) and Best Buy’s 48-hour flash sale in the same week.
Steve Sadove, Senior Adviser for Mastercard, contends that present-day shoppers are poised to exercise heightened selectivity, prioritizing value-driven purchases. The impending holiday season is anticipated to pose a formidable challenge for retail leaders, contending with multifaceted hurdles stemming from the prolonged pandemic.
Despite facing formidable challenges, Target stands resolute in its dedication to offer unparalleled bargains for budget-conscious shoppers as the holiday season swiftly approaches. The outlook for the retail sector may seem somber, but with companies adept at navigating the current landscape, the future holds potential beyond initial forecasts.
Source: Reuters
