Operational changes aim to improve in-store experience
:contentReference[oaicite:0]{index=0} announced plans to increase staffing levels in its stores while cutting about 500 jobs across distribution centers and regional offices, as it works to address customer complaints around empty shelves, out-of-stock items and long checkout lines.
In an internal memo obtained by CNBC, the retailer said the changes are designed to simplify how stores are managed and to redirect resources toward front-line employees. Improving the shopping experience is a central priority for new CEO Michael Fiddelke, who took over the role earlier this month.
Fewer districts, more hours on the sales floor
Target said it will reduce the number of store districts, the geographic groupings that oversee its nearly 2,000 locations, freeing up funds to increase labor hours in stores. Of the roughly 500 job cuts, about 100 will come from district-level roles, with the remaining 400 affecting supply chain sites and regional offices.
The company said the move will allow it to invest more payroll directly into stores, primarily through additional staffing and training focused on guest experience. Target declined to disclose how much extra funding will be allocated but confirmed that hourly wages will remain unchanged, ranging from $15 to $24 depending on location.
Leadership reshuffle under new CEO
Alongside the staffing changes, Target announced several leadership updates. Cara Sylvester will become chief merchandising officer, while Lisa Roath will succeed Fiddelke as chief operating officer. Rick Gomez, the company’s chief commercial officer, will depart, and Jill Sando will retire.
Target also reaffirmed its outlook for the fourth quarter and the full fiscal year ended Jan. 31. It expects fourth-quarter sales to decline by a low single-digit percentage and full-year adjusted earnings per share to range between $7 and $8, compared with $8.86 the prior year.
Pressure from customers and competitors
The retailer has struggled to regain momentum after several years of flat sales and cut 1,800 corporate roles last year. Shoppers and investors have criticized weaker customer service and merchandising, while Target has also faced boycotts tied to political and social decisions.
At the same time, competition has intensified from rivals such as :contentReference[oaicite:1]{index=1}, while consumers have become more cautious about discretionary spending amid a tougher economic environment.
Simplifying a more complex store model
Fiddelke has said Target must simplify store operations that have grown more complex as employees juggle in-store service with online order fulfillment. The company has already shifted parts of its e-commerce strategy by designating certain stores to handle shipping orders while others focus solely on in-store shoppers.
Target is expected to provide more details on its broader turnaround strategy when it reports holiday-quarter earnings and hosts an investor event on March 3.
