Target cut 25,000 jobs in the past year, even as it increased its store count | MarketWatch
In their latest annual report, Target revealed a significant reduction in their workforce for the second year in a row. As of early February, they had 415,000 employees, down by 25,000 or 5.7% from the previous year. This follows a cut of 10,000 jobs in the prior fiscal year. What’s interesting is that this downsizing is happening even though Target has been consistently increasing its number of stores for the past nine years.
Now, let’s talk stocks. Target’s stock took a hit, dropping 13.7% in the fiscal year to February 3, and tumbling 22.6% the year before. This decline is partly due to a post-pandemic slump and rising inflation, which led customers to spend less on non-essential items. In contrast, Walmart’s stock went up by 23.3% over the past two fiscal years, while the S&P 500 index gained 11.9%.
Despite the job cuts, Target has been expanding its physical presence. They added eight stores in the past year, bringing the total to 1,956 stores. However, they also closed nine stores in various states due to concerns over organized retail theft.
Interestingly, even with these closures, Target’s store count in New York and California still increased, while it decreased in Washington and Oregon. Over the year ending in January 2023, Target added 22 stores and has been on an upward trend in store count since January 2015.
As for the stock market, Target’s shares fell 1.8% in recent trading and have been on a six-session losing streak, the longest in 10 months……….
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Rising Dough
In the context of Target’s workforce reduction and store expansion, how might the balance between physical store presence and workforce efficiency impact a company’s overall financial performance and market perception? Consider the role of strategic decision-making in retail business operations.
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