Target Corporation (TGT) no doubt has had a tough past few weeks.
The Minneapolis-based retailer first waded into some tricky politics by using its first quarter earnings report to warn about risks to its stores from retail theft and violent crime.
And then things really blew up when Target said it will pull some merchandise from its LGBTQ Pride collection because of threats from extremists, a decision that drew lots of criticism, including from this writer.
But lost in the mayhem is a message Target has been trying, sometimes badly, to convey to the broader public: The company is focusing on improving the working conditions of its store employees through wages, benefits, and operations.
First of all, nothing Target, a company that generates more than $100 billion a year in revenue, does is completely altruistic. But the fact of the matter is that working in retail is not easy or glamorous; the global pandemic certainly reinforced that reality.
So Target needs to find ways to attract and retain workers, especially when operating in a digital world that requires them to do much more than just ringing up items at the checkout.
“We're also intently focused on creating easier and more efficient ways for our team to deliver on our strategy and fuel our ongoing growth ambitions,” CEO Brian Cornell told analysts.
More Money and Training
Over the past few years, Target has raised its wages to $15 to $24 an hour across the country, well above the federal minimum wage and that of many states.
The retailer also talked up Dream to Be, which offers free tuition for workers to gain degrees at more than 40 schools, colleges and universities. To develop future managers and executives, Target has rolled out what it calls a “cohort based peer learning model,” in which participants receive classroom instruction, one-on-one coaching, and on-the-job practice. Walmart Stores Inc. (WMT) is doing something similar.
“We are focusing this year on training and development for our team with an emphasis firmly centered on retail fundamentals,” chief operating officer John Mulligan recently told analysts. “Our goal is to reinforce the reliability and consistency of our shopping experience as we help our team members to succeed in their current job and build the right skills to prepare for the next one.”
But the most interesting thing Target has done of late has been operational. In today’s omnichannel world, stores are not just stores but also distribution hubs to fulfill online orders.
Asking Employees To Do More and More
Workers at stores pick merchandise off the shelves and backrooms and package them, including for next day delivery. Consumers can also pick up their orders at counters inside the store or at the curb.
And now Target is offering consumers the ability to return items without leaving their cars. The retailer has also invested in store-within-store concepts like Ulta Beauty, which requires extra training and duties for some employees.
In short, the retailer is keenly aware that the work of store employees has exponentially expanded in both quantity and complexity. So Target has been attempting to ease some of those workloads. For example, the process of filling online orders, especially for next day delivery, will shift to sortation centers the retailer is building across the country.
“Every store this year is engaging in assessments to reinforce consistently strong execution,” Mulligan said. “These assessments are centered on the factors most essential to … delivering a consistent experience ranging from staffing and scheduling to inventory management, in-store signing, digital fulfillment, guest and team member safety, and the checkout experience.”
Notice the phrase “guest and team member safety.” Whether crime has grown worse since the pandemic is debatable, but the fact remains that store employees, depending on the location, have to put up with a lot of stuff. Employees already have enough to do for Target without worrying about their physical safety.
In pulling the LGBTQ merchandise, Target had no good business reason to do that other than a genuine concern that some people might harm employees and customers.
That’s a decision at least one person appreciates.
“Hi, I AM a queer, trans target employee," a person named Jai tweeted. "And I would (personally) prefer the company be 'safe rather than sorry' [because] I don't get paid enough to get threatened, assaulted, or possibly gunned down at work over a swimsuit."
