Target to hire 100,000 workers for holiday period, but sales may disappoint
A Mastercard report on Tuesday showed US retail sales could rise only by 3.7% for the period beginning November to December 24
19 September 2023 - 16:27
byAnanya Mariam Rajesh
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A Target store in Manhattan, New York City. Picture: ANDREW KELLY
Bengaluru — Target said on Tuesday it would hire nearly 100,000 employees for the holiday season, like the past two years, and offer discounts for the competitive shopping period as early as October.
The plan comes against the backdrop of predictions that sales growth during the crucial holiday period in the US could be just half of what it was last year due to higher prices denting consumer spending and worries of a recession.
A Mastercard report on Tuesday showed US retail sales could rise only by 3.7% for the period beginning November to December 24, compared with the 7.6% growth seen in 2022.
Last week, a report from career consultancy firm Challenger, Gray & Christmas showed that weaker spending coupled with increased labour costs would result in US retailers hiring the lowest number of seasonal workers in 2023 since 2008.
In 2022, Amazon.com had announced plans to hire 150,000 employees for the holiday season, while retail bellwether Walmart had said it would add 40,000 workers in seasonal and full-time roles.
Macy's said on Monday it would hire more than 38,000 full and part-time seasonal workers, fewer than the 41,000 workers it had announced to hire in 2022.
Target’s holiday hiring numbers have been the same as “retailers who have been facing tough (inventory theft) shrink issues” have been hiring partly also to keep the situation under control, said Jessica Ramirez, senior analyst at Jane Hali and Associates.
Major retailers, including the big-box retailer, have warned of a hit to profit resulting from inventory theft.
In a bid to draw shoppers, Target said it would start offering items under $25 across categories, including apparel, home goods and essentials, and host a “deal of the day” programme from October.
The programme is its response to similar shopping events at retail giants such as Amazon, which is kicking off its second Prime Day for the year on October 10-11, and Best Buy, which is having a flash 48-hour sale on those days.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Target to hire 100,000 workers for holiday period, but sales may disappoint
A Mastercard report on Tuesday showed US retail sales could rise only by 3.7% for the period beginning November to December 24
Bengaluru — Target said on Tuesday it would hire nearly 100,000 employees for the holiday season, like the past two years, and offer discounts for the competitive shopping period as early as October.
The plan comes against the backdrop of predictions that sales growth during the crucial holiday period in the US could be just half of what it was last year due to higher prices denting consumer spending and worries of a recession.
A Mastercard report on Tuesday showed US retail sales could rise only by 3.7% for the period beginning November to December 24, compared with the 7.6% growth seen in 2022.
Last week, a report from career consultancy firm Challenger, Gray & Christmas showed that weaker spending coupled with increased labour costs would result in US retailers hiring the lowest number of seasonal workers in 2023 since 2008.
In 2022, Amazon.com had announced plans to hire 150,000 employees for the holiday season, while retail bellwether Walmart had said it would add 40,000 workers in seasonal and full-time roles.
Macy's said on Monday it would hire more than 38,000 full and part-time seasonal workers, fewer than the 41,000 workers it had announced to hire in 2022.
Target’s holiday hiring numbers have been the same as “retailers who have been facing tough (inventory theft) shrink issues” have been hiring partly also to keep the situation under control, said Jessica Ramirez, senior analyst at Jane Hali and Associates.
Major retailers, including the big-box retailer, have warned of a hit to profit resulting from inventory theft.
In a bid to draw shoppers, Target said it would start offering items under $25 across categories, including apparel, home goods and essentials, and host a “deal of the day” programme from October.
The programme is its response to similar shopping events at retail giants such as Amazon, which is kicking off its second Prime Day for the year on October 10-11, and Best Buy, which is having a flash 48-hour sale on those days.
Reuters
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