Holiday Hiring and Sales Expectations
As the holiday season approaches, retailers are gearing up for what could be a challenging period. Target, one of the largest retail chains in the United States, recently announced that it plans to employ approximately 100,000 seasonal workers this year, a number in line with the last three years. This decision comes despite concerns about frugal spending patterns from inflation-wary shoppers.
Data from Deloitte suggests that holiday retail sales are expected to grow at their slowest pace in six years. This indicates that consumers may be more hesitant to open their wallets during the key shopping period. However, Target remains optimistic and intends to meet the demands of its customers by bringing in additional staff.
The majority of the seasonal hires at Target will be working in the company’s stores and supply chain facilities. This aligns with the strategies of other retailers, such as Bath & Body Works, which also plans to hire 30,000 seasonal workers for the holiday season. In fact, consultancy firm Bain & Company predicts that overall seasonal hiring will be similar to last year.
To attract value-seeking shoppers, Target is planning to introduce more affordable holiday items. This includes offering more than half of their holiday toys for under $20 and stocking stuffers priced under $5. This move aligns with Target’s earlier efforts to reduce prices on popular items throughout the year, a strategy that helped raise the company’s full-year profit forecast.
In addition to competitive pricing, Target will also be launching its deals week program, called Target Circle, starting from October 6th. This program is aimed at providing additional discounts and promotions to customers during the holiday season.
Another major retailer, Best Buy, is also getting ready for the holiday rush. The electronics retailer plans to kick off its holiday season with multiple sales events, including exclusive member sales starting from September 27th to 29th. This early start is a response to the growing trend of customers beginning their holiday shopping well before the traditional start of the season.
Overall, retailers are making strategic moves to adapt to the changing landscape of holiday shopping. By offering affordable items and launching sales events, they hope to entice consumers to spend despite concerns about inflation and economic uncertainty. However, only time will tell if these efforts will be enough to drive strong sales during the holiday season.
