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The Big Money Show looks at the latest earnings from major retailers like Target, TJ Maxx and Lowes.
objective On Monday, it took steps to streamline its retail model by pouring more money into front-line store employees while cutting about 500 back office and supply chain jobs.
The retail giant said in an internal memo seen by FOX Business that it will reduce the number of store districts, which are regions in which Target stores are grouped, to facilitate the payroll of more workers and hoursas well as guest experience training for store staff. The news was first reported by CNBC.
Target’s layoff plans are expected to affect about 100 people at the store district level and about 400 at the company’s supply chain locations, according to the internal email sent to employees by director of stores Adrienne Costanzo and director of supply chain and logistics Gretchen McCarthy.
“We have already shared the news with directly affected team members and will support them during this transition with a variety of resources and benefits,” the memo said.
TARGET’S NEW CEO TAKES CONTROL Amid falling sales and unrest in MINNEAPOLIS
Target has suffered from sluggish sales in recent years and aims to reverse that trend. (Michael Nagle/Bloomberg via Getty Images)
The change “fuels our ability to put significantly higher payroll in our stores, primarily in labor and overtime where it’s needed most, but also in guest experience training for every team member in each store,” the executives wrote.
The announcement does not change workers’ starting pay, according to a Target spokesman, who declined to specify how much money is being invested in the stores.
Target CEO Michael Fiddelke, who took the top job earlier this month, indicated in October that the company would cut about 1,800 corporate positions as big box retailer suffers its first major layoff in nearly a decade.
OBJECTIVE BETTING ON THE $5M STORE RENOVATION PLAN TO RECOVER SALES
| Ticker | security | last | change | % change |
|---|---|---|---|---|
| TGT | TARGET CORP. | 115.52 | -0.03 |
-0.03% |
Fiddelke hopes to lead a successful turnaround effort that will drive growth at Target as the retailer’s sales have fallen in recent years.
On Tuesday, the company announced changes at the executive level. Cara Sylvester was named director of merchandising and Lisa Roath was named director of operations.
Fiddelke said in a memo to employees after taking over that his priorities will include tuning Target merchandise mix while improving the retailer’s stores and website to make shopping easier and more engaging.
OBJECTIVE REDUCES PRICES ON THOUSANDS OF ITEMS TO RECOVER WALKING SALES
Target CEO Michael Fiddelke took over the retail giant earlier this month. (Elizabeth Flores/The Minnesota Star Tribune via Getty Images/Getty Images)
Fiddelke also said the company plans to use technology to streamline operations and personalize the customer experience, indicating that the company plans to invest more in its employees and strengthen ties to the communities in which it operates.
“Priority 1 to 10 is accelerating Target’s growth,” Fiddelke said in an emailed statement to FOX Business earlier this month, adding that the company is “moving with urgency and focus.”
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Daniella Genovese of FOX Business and Reuters contributed to this report.
