Target boosts store staffing investment; cuts 500 roles to improve customer experience

• Target is cutting about 100 positions at the store district level and 400 across supply chain sites while redirecting funds to add more labor hours and guest experience training for frontline store employees
• The company has faced declining customer satisfaction as shoppers report Target has lost its edge in attentive service and trendy merchandise that once earned it the 'Tarzhay' nickname
• Annual sales have remained roughly flat for four years as Target struggles with increased operational complexity from fulfilling online orders in stores and stiffer competition from rivals like Walmart

Summary: Target Boosts Store Staffing Investment While Cutting 500 Roles

Key Developments:

Target announced a strategic restructuring to improve customer experience, investing more in frontline store staffing while eliminating approximately 500 positions across distribution centers and regional offices. The cuts include roughly 100 store district-level roles and 400 supply chain positions.

Strategic Changes:

The retailer is reducing the number of store districts overseeing its nearly 2,000 locations and redirecting funds toward additional labor hours and new guest experience training for all store employees. Current starting wages ($15-$24 per hour depending on location) will remain unchanged. Target declined to specify the total investment amount.

Business Context:

These changes mark one of the first major initiatives under new CEO Michael Fiddelke, who assumed the role this month after serving as CFO and COO. Target has struggled with four consecutive years of flat annual sales and faces mounting challenges including:

• Customer complaints about messy stores, out-of-stock items, and long checkout lines
• Lost competitive edge in attentive service and trendy merchandise
• Consumer backlash over various political and social stances
• Increased competition from rivals like Walmart
• Weakened consumer spending on discretionary items amid economic pressures

Management Priorities:

Fiddelke's key CEO priorities include restoring Target's reputation for style and design, ensuring consistent customer experiences, and simplifying increasingly complex store operations. Store managers now juggle traditional retail alongside substantial fulfillment operations for curbside pickup and home delivery.

Market Implications:

The restructuring signals Target's acknowledgment of operational weaknesses and represents an attempt to reverse years of stagnant growth by refocusing on core customer service fundamentals.