Target has announced plans to reduce employee bonuses for 2024, with salaried staff set to receive only 87% of their annual bonus due to the company’s recent financial performance.
The bonuses were dependent on fiscal year 2024 performance, according to the company.
The retail chain reported better-than-expected results in Q4 of 2024. Target saw its net sales drop by 3.1% to $30.9 billion, while its comparable sales inched up by 1.5%.
For the full fiscal year 2024, Target’s net sales fell by 0.8% to $106.6 billion, while comparable sales rose by 0.1%.
However, despite the solid earnings, the company predicted a modest outlook due to the potential impact from tariffs and slow February sales.
The retail giant recently introduced an increased assortment of over 2000 baby and beauty products as part of its turnaround strategy, which includes improving the assortment of store offerings.
Target’s CEO Brian Cornell outlined a growth plan to achieve over $15 billion in sales by 2030 by driving sales through its third-party marketplace, expanding its in-house media company, and increasing the members on its loyalty program.
Cornell said: “Shoppers continue to seek differentiated options and distinctive shopping experiences without sacrificing value, and Target has the scale, strategy, and capabilities to support all the ways consumers shop and engage with brands.
“With gains in consumer traffic, continuing improvements in speed and reliability, and accelerating growth across digital capabilities, we are doubling down on initiatives that scale these capabilities and drive meaningful top-line and bottom-line growth.”
Additionally, the company anticipates that prices may increase for consumers due to added tariffs.
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