Why Wages Are Not 'A Real Issue' For Target?

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Target Corporation
TGT
shares have seen a strong rally in the past few months fuelled by the expectations that the new CEO, Brian C. Cornell, will turnaround the company. So, what exactly is Target's turnaround strategy? Craig Johnson, president of Customer Growth Partners, was on Bloomberg to answer that question and to discuss whether wages are an issue for the company. The Turnaround Strategy "Well, there's a couple of different things, number one is he [Brian C. Cornell] is getting back to basics in terms of retail execution, Retail-101 , the basics in stocks, customer service," Johnson said. "The other thing he is trying to recapture the DNA of the company, which is smart style at great prices and focussing on the core customer." "That means a young mom with a couple of kids and maybe with dad in tow, focussing on what's important to her that's apparel, home and health and beauty aids, he is making that the priority." Wages Not A Real Issue When asked whether Target will feel the heat from other retailers to increase wages of its employees, Johnson replied, "That's an open question right now. They are, I don't know where they are with the exact wages, but they are noted for having very high quality people within the store and that has never been a particular issue." "Obviously they had the issue with the data breaches a year [in change] ago, but that had nothing to do with the frontline people. So, the customers service or the frontline people the cashiers, the stock […], people who work in the aisle those people have been, they do a great job and so I am not certain that wages at all are a real issue," Johnson concluded.
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