Target Reallocates Labor to Enhance Customer Experience Amid Job Cuts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy TGT?
Source: seekingalpha
- Labor Restructuring: Target (TGT) is reallocating labor resources by increasing store staffing to address customer complaints while cutting 500 jobs in distribution centers and regional offices, thereby enhancing in-store customer service quality and responsiveness.
- New CEO Strategy: New CEO Michael Fiddelke emphasizes a significant organizational shift aimed at achieving sustainable long-term profitable growth by increasing capital expenditures to $5 billion, marking a pivotal change in company strategy.
- Enhancing Customer Experience: The company plans to provide a more consistently elevated experience across all stores and digital platforms while reducing the mix of “brown box” fulfillment to allow for more customer interaction in high-traffic stores.
- Optimizing Fulfillment Strategy: By increasing online order volume at lower-traffic stores and decreasing it at higher-traffic locations, Target (TGT) can accelerate delivery times while simultaneously improving the customer experience at more profitable stores.
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Analyst Views on TGT
Wall Street analysts forecast TGT stock price to fall
26 Analyst Rating
8 Buy
14 Hold
4 Sell
Hold
Current: 112.690
Low
80.00
Averages
98.83
High
126.00
Current: 112.690
Low
80.00
Averages
98.83
High
126.00
About TGT
Target Corporation is a general merchandise retailer selling products to its guests through its stores and digital channels. The Company offers customers, referred to as guests, everyday essentials and fashionable, differentiated merchandise at discounted prices. The majority of its stores offer a wide assortment of general merchandise and food. Its merchandise categories include apparel and accessories, beauty and household essentials, food and beverage, hardlines, and home furnishings and decor. Most of its stores are larger than 170,000 square feet, offer a variety of general merchandise and a full line of food items comparable to traditional supermarkets. Its digital channels include a wide merchandise and food assortment, including many items found in its stores, along with a complementary assortment sold by the Company and third parties. Its brands include A New Day, Ava & Viv, Cloud Island, Favorite Day, and others. It serves guests at nearly 2,000 stores and at Target.com.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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