Target has announced a corporate restructuring plan that will see it ax several thousand jobs – but the focus will be at the headquarters level and not at the company’s 1,800+ retail locations.
In order to “fuel growth and drive profitability”, Target is looking to cut costs to the tune of $2 billion.
“These savings will be realized through operations, technology and process improvements; supply chain and sourcing efficiencies; and corporate restructuring,” says the company.
This will include some job cuts, which will come primarily from corporate locations in Minneapolis and India – which employ around 26,000 people in all – according to Reuters.
“Following a thorough, strategic review of our business, coupled with a careful evaluation of the changing retail landscape, we have identified the key initiatives that will put Target on a clear path to growth,” said Chairman and CEO Brian Cornell in a statement. “We’re focused on our future and building the capabilities that will take us further, faster. Redefining Target will require a renewed emphasis on prioritization and innovation, and above all else, putting our guests first in everything we do.”
Apart from the corporate restructuring, Target has also announced a new focus on a “channel-agnostic” approach – meaning more focus on online sales and technology.
“The retailer is taking a channel-agnostic approach to growing its business, driving a total Target experience across stores, online and mobile. Guests who shop Target in stores and online generate three times the sales compared to guests who shop in stores only. Continued enhancements in technology, supply chain and inventory management will create a shopping experience that is rooted in ease and inspiration. This will help spur Target’s continued annual growth in digital channel sales of 40 percent, as well as contribute to a total projected sales growth of 2 to 3 percent and comparable sales growth of 1.5 to 2.5 percent in 2015,” said the company in a press release.
Target says it’ll invest at least $1 billion in tech.
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