- Target posted a strong second quarter with $ 23 billion in revenue
- Bonuses come on top of an enticing $ 15 per hour minimum wage
- Walmart too is seeing sales growth, driven in part by an uptick in online sales during the COVID-19 pandemic
Big-box retailer Target announced Monday members of its workforce would get a $ 200 bonus for putting in the hours during extraordinary times.
“In a year like no other, I’m proud of what this team has accomplished and grateful for the care and connection they’ve provided our guests and communities,” Melissa Kremer , Target’s chief human resources officer, said in a statement.
The incentive comes amid expectations of what holiday shopping during the pandemic could look like. A report released last month by British accounting firm Deloitte found retail sales during the 2020 holiday season are expected to come in between $ 1.4 trillion and $ 1.5 trillion from November through January, a year-on-year gain of about 1.5%. For the 2019 holiday season, sales increased 4.1% from the previous year.
The US Census Bureau finds sales for retail and food services last month were up 5.4% from the same period last year. The Minneapolis-based retailer reported total revenue of $ 23 billion during the second quarter, a 24.7% increase from the same period last year. Digital sales rose nearly 200%.
“Target’s success this year is a direct result of our team members turning our purpose into action and meeting our guests’ changing needs day after day.” Kremer added.
Target is not alone in posting growth during the pandemic. Walmart during the second quarter reported $ 138 billion in revenue, an increase of 5.6% from the same period last year. The company’s e-commerce sales grew 97%.
Target this year has already awarded around $ 1 billion in bonuses this year, including an increase in its minimum wage to $ 15 per hour, against a federal minimum wage of $ 7.25 an hour. While retailers are expected to add more people during the payrolls to keep up with holiday sales, Target noted that it was not offering any forward guidance given the uncertainty from the pandemic.