Despite reporting its first sales drop in years earlier this month, Target is reportedly doubling salaried employees’ bonuses this year.
The big-box retail giant will pay employees’s eligible 2023 bonuses in full — up from 50% last year, sources told Bloomberg, adding that bonuses typically peak at 175% of the eligible amount. While the bonus increase applies to salaried employees, it reportedly does not apply to hourly employees, and Target’s senior executives have a separate bonus payout structure. The bonuses will be issued at the end of the month.
“Like many companies, Target offers a bonus plan for select employees that is designed to reward their performance in driving our results,” a Target spokesperson told Quartz in a statement. “The bonus structure is informed by goals set at the beginning of the fiscal year, and includes sales performance and profit outcomes.”
Based on the retailer’s 2023 performance, including an additional profit growth of $2 billion “that exceeded the goals we set at the beginning of the year, we’re rewarding our team accordingly,” the spokesperson added.
Earlier this month, Target stock surged to its highest point in almost a year thanks to beating Wall Street’s expectations on its profit forecast. Target said profits in its fourth quarter had increased by 58% as the retailer cut costs, tightened inventory, and saw a fall in freight and supply chain expenses. Target’s revenue also beat Wall Street’s expectations.
The retailer also announced plans for a new loyalty program, Target Circle, that would be a “roadmap for growth aimed at meeting consumers where they are, reigniting sales, traffic and market share gains.” The company said during a meeting with investors the program would have an “evergreen price” of $49, and benefits of the program would include a 5% discount on purchases and delivery orders, and one-hour delivery for customers.