Group 1 - Target demonstrated strong e-commerce growth during the early pandemic, increasing revenue by $30 billion over five years, but has struggled to maintain growth due to various challenges [1][5] - The company's stock performance has been poor, declining approximately 32% this year, while the S&P 500 has risen [2] - Target is implementing strategic changes, including the establishment of an "enterprise acceleration office" and a transition to a new CEO, to improve efficiency and drive growth [2][6] Group 2 - Rising interest rates and consumer focus on essentials have negatively impacted Target, as it relies more on discretionary spending compared to competitors like Walmart [5] - Issues such as in-store theft and customer complaints about long lines have further hindered revenue growth, with net sales down 0.8% and earnings per share down 0.9% in the latest full year [6] - Recent positive trends include increased store traffic and sales, along with plans to streamline online order fulfillment to enhance customer service [6][7]

Core Insights - Target is implementing a new directive for in-store employees to enhance customer interaction by mandating smiles, eye contact, and greetings within a specified distance to boost sales during the holiday season [1][2][4] Group 1: Customer Experience Initiatives - The initiative, referred to as the "10-4 program," aims to improve customer experience across nearly 2,000 Target locations nationwide [2] - Employees are instructed to greet or wave to shoppers within 10 feet and to offer assistance if customers come within 4 feet [1][6][13] - Target's Chief Operating Officer, Michael Fiddelke, emphasizes the need for a consistent guest experience, focusing on clean stores and faster online delivery [3] Group 2: Sales Performance and Strategy - Target has experienced sluggish sales, with comparable sales down 1.9% year-over-year in Q2 2025, including a 3.2% decline in-store, while digital sales increased by 4.3% [7] - The company is investing approximately $4 billion this year in new stores, remodels, technology, and supply chain upgrades to regain customer loyalty [11] - Target's stock has decreased over 30% this year, contrasting with a 14% gain for the S&P 500, as consumers prioritize necessities and competitors like Walmart enhance their offerings [13]

This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Dive Brief: Walmart has deployed inventory-tracking sensors across its supply chain through a collaboration with Wiliot, providing more data for the retailer's artificial intelligence push. Data from Wiliot's ambient Internet of Things sensors aim to help Walmart improve its supply chain efficiency, inventory accuracy and cold chain compliance via real ...

Core Insights - Walmart has introduced new AI tools aimed at enhancing the holiday shopping experience for customers [1][2] Group 1: New Features - The Walmart app now includes an In-Store Savings feature that shows items on sale at specific locations, an enhanced search feature for in-store stock availability, and a shopping list feature that organizes items by aisle [2][4] - The AI-powered digital assistant, Sparky, can now assist users in planning parties by generating curated lists of necessary items based on the occasion [3] - Additional features include AI-generated audio clips summarizing premium beauty product descriptions, a Shop the Background feature for adding items from images to the cart, and a Dynamic Showroom feature for visualizing different room setups with selected furnishings [4] Group 2: Customer Engagement and Spending - Walmart's senior vice president, Tracy Poulliot, noted that customers using the app while shopping in stores tend to spend 25% more on average compared to those who do not use the app [5] - A PYMNTS survey indicated that 32% of respondents have used or are willing to use generative AI for shopping, highlighting a growing trend in AI adoption among consumers [6] Group 3: Future Developments - Walmart CEO Doug McMillon emphasized the importance of AI in the company's strategy, stating that as Sparky evolves, it will become smarter and more personalized, serving as a primary tool for discovery, shopping, and managing orders and returns [7]

Core Insights - Target Corp. is undergoing its first major restructuring in nearly a decade, announcing the elimination of 1,000 positions and the decision not to fill 800 additional open roles as part of a plan to simplify operations [4][8] - The company has faced communication issues during this process, including a technical glitch during a Zoom meeting meant to inform employees about job cuts, leading to frustration among staff [2][3][4] - Target's recent struggles include sluggish sales and challenges related to its diversity policies, which have affected its public image and consumer spending [9] Company Actions - The job cuts will impact various teams, including merchandising, product management, accounting, and cybersecurity, with affected employees receiving severance pay [10] - Employees were informed of their job status via email after a disrupted Zoom meeting, which highlighted the company's communication shortcomings [3][4] - A phishing exercise mistakenly sent to employees added to the stress of the situation, prompting an apology from Target's security manager [6] Industry Context - Target is part of a broader trend among major corporations, including Amazon and UPS, that are reducing workforce numbers to cut costs and streamline operations [8] - The company is attempting to recover from a decline in sales that began after a pandemic-related surge, exacerbated by inflation and changing consumer behavior [9]

Core Insights - The company is undergoing a restructuring process, with a total of approximately 1,800 corporate jobs being affected, including 1,000 existing positions and 800 unfilled postings, indicating a focus on streamlining operations and initiating change [1] - The company has recognized potential operational bloat, a common issue across the industry, as many firms added redundancy during the pandemic to ensure supply chain stability [2][3] - The decision to cut corporate jobs is seen as a normal business practice, with other retailers like Walmart also making similar moves [4] Business Fundamentals - The job cuts will not impact customer-facing roles, meaning seasonal hiring and in-store employee numbers will remain unaffected [5] - Success in the upcoming holiday season will depend on inventory management, product selection, and customer experience, with retailers needing to ensure they have adequate stock [6][8] - Retailers are expected to offer more spread-out deals during the holiday season as consumers seek value and manage spending to avoid large credit card bills in January [10] Supply Chain and Pricing - Most holiday goods orders were placed earlier in the year, with products arriving in July and August, positioning retailers well for the holiday season [9] - Certain product categories may see price increases due to tariffs, but retailers are hesitant to raise prices unless absolutely necessary [11] - Companies are exploring ways to manage costs with suppliers to avoid passing on price increases to consumers, although some price adjustments may be unavoidable [12]

Core Insights - Target Corporation plans to lay off approximately 1,800 corporate employees, marking its first major cutback in nearly a decade, in an effort to improve stagnant sales and enhance operational efficiency [4] - Incoming CEO Michael Fiddelke highlighted that excessive layers and overlapping work have hindered decision-making, making it challenging to implement new ideas [4] - The layoffs will affect about 8% of the corporate workforce, including the elimination of 800 open positions, primarily impacting managerial roles while preserving store and supply chain positions [4] Financial Performance - Target's share price has decreased by nearly one-third this year, amid 11 consecutive quarters of weak or declining comparable sales [3][4] - The company is under pressure from U.S. tariffs on imports, which adds to its financial challenges [3] - Target maintained its annual forecasts in August after a reduction in May, attributing the adjustments to weak demand for discretionary items such as apparel and electronics [3]

Core Insights - Walmart is implementing a new performance-based pay structure for its frontline hourly workers in the US, moving away from across-the-board raises based solely on years of service [1][2][3] Group 1: New Pay Structure - The new plan incorporates factors such as attendance, teamwork, and overall store performance into the evaluation for raises, allowing for adjustments of up to one percentage point based on these metrics [4][9] - Employees with varying lengths of service will have different baseline raises, with those who joined in the last six months eligible for a 1% raise, while those with over ten years of service can receive a baseline raise of 4% [5][12] Group 2: Performance Evaluation - The performance evaluation consists of three equally weighted factors: attendance and shift completion, behavioral contributions to the team, and overall store performance in sales and customer satisfaction [9][10] - Employees are rated as "exemplary," "successful," or "opportunity," with the highest ratings leading to the maximum performance-related adjustment of one percentage point [10][11] Group 3: Implementation and Feedback - The new system is fully active and will collect data from November 1 to January 20, after which raises will be calculated for the following year [13] - The structure aims to provide clearer feedback to workers, linking their pay more closely to day-to-day performance [13]

Core Insights - Target is laying off approximately 1,000 corporate employees and eliminating 800 open positions to enhance decision-making speed and drive growth under new CEO Michael Fiddelke [1][7] - The layoffs will primarily affect US-based roles, especially in leadership positions, with 80% of cuts occurring in the US and accounting for 8% of the global headquarters team [2] Group 1: Leadership and Strategy - Michael Fiddelke, who will take over as CEO in February, aims to streamline operations by reducing management layers and fostering a faster, more innovative corporate environment [1][10] - The company has initiated the Enterprise Acceleration Office to simplify processes and improve cross-functional collaboration, which Fiddelke has been overseeing since its launch [4][10] Group 2: Financial Performance - In the latest fiscal quarter, Target reported $25.2 billion in sales, a decrease of 0.9% year-over-year, attributed to reduced merchandise spending by consumers [11] - Comparable store sales fell by 1.9%, with in-store sales dropping over 3%, while online sales increased by just over 4% [12] - Operating income for the quarter was $1.3 billion, reflecting a decline of approximately 19.4% compared to the previous year [12] Group 3: Employee Impact - Affected employees will receive benefits and pay through early January, in addition to any severance packages offered [3] - Fiddelke acknowledged the difficulty of the decision but emphasized the need for these changes to position the company for future success [10]

Core Insights - Target has faced significant challenges in 2025, including economic pressures, changes in consumer behavior, high labor costs, inflation, and competition, but has also encountered unique obstacles related to its DEI initiatives and Pride products [1][3] Group 1: DEI Policy Changes - In January, Target made controversial cuts to its diversity, equity, and inclusion (DEI) policies, including withdrawing from the Human Rights Campaign survey, which tracks LGBTQ+ corporate practices [2] - The decision led to consumer backlash, resulting in boycott threats, a decline in sales, and reduced foot traffic in stores [3] Group 2: Financial Performance - According to Target's Q10 filing for Q2 2025, net sales decreased by 0.9% year-over-year to $25.2 billion, while comparable sales fell by 1.9%, driven by a 1.3% drop in traffic and a 0.6% decrease in average transaction amounts [3] Group 3: New Initiatives - To regain customer trust, Target has begun testing the sale of THC-infused beverages in select liquor stores in Minnesota, marking a significant move for a retailer of its size [5][6] - Target is the first major retailer to enter the THC beverage market, which has been largely avoided by national chains, indicating a potential shift in industry dynamics [6]