Target (TGT) announced that it will hire around 100,000 seasonal workers for the holidays, consistent with the past three years. This announcement comes despite expectations that consumers may be more cautious with spending during the holiday season due to inflation.
Target Plans to Woo Budget-Conscious Shoppers
In line with these concerns, a Reuters report citing Deloitte data suggests holiday sales are projected to grow at their slowest pace in six years. Target’s seasonal hires will primarily work in its stores and supply chain facilities. To further adapt to the changing consumer landscape, the retailer plans to offer 50% more affordable holiday items than last year, such as toys under $20 and stocking stuffers under $5.
Building on its strategy to appeal to budget-conscious shoppers, Target’s Circle Week, which provides deals and savings, will be held from October 6 to October 12. This initiative is expected to draw in shoppers looking for early holiday bargains.
Why Is the Holiday Season Important for Target?
The holiday season is a seasonally strong period for retailers like Target as they experience robust sales during this period. In fact, according to Reuters, the holiday season makes up more than 50% of the annual revenue for retailers in the U.S.
As a result, according to the TipRanks “Bulls Say, Bears Say,” analysts bullish on TGT stock expect the retailer to benefit from its “omni-channel model that integrates both online and offline sales, supported by its ongoing efforts in same-day delivery services to cover 80%+ of the U.S. population.”
What Is the Future of TGT Stock?
Analysts remain cautiously optimistic about TGT stock, with a Moderate Buy consensus rating based on 17 Buys, 10 Holds, and one Sell. Over the past year, TGT has increased by more than 25%, and the average TGT price target of $173.58 implies an upside potential of 14.7% from current levels.
