The push to bring employees back comes as the chain faces a more challenging business environment. Target has struggled with sluggish sales and tougher competition, raising questions about how it can re-energize both customers and employees ahead of the crucial holiday season.
With pressure on discretionary spending — Target’s bread and butter — selection and store experience are crucial, Gomez said on a recent earnings call.
Target reported in August that same-store sales were down more than 3% for May, June and July. Walmart said sales for the same three months rose nearly 5% from a year ago.
Michael Fiddelke, Target’s incoming CEO and chief operating officer, acknowledged on a recent earnings call that the chain needs to do more to rebuild its reputation for style and design, especially in home goods, while also improving the in-store shopping experience and advancing the company’s technology.
“We saw explosive growth during the pandemic, and on the heels of that growth, we focused a bit too much on core assortments and lost some of our fashion and design leadership,” he said.