This article has been updated since its initial publish date with more information.
Some of Target‘s seasonal employees will notice a major difference between this year and last year’s holiday season when it comes to their pay. As reported by Forbes, in late 2021, the department store giant pushed for “bumping up the pay of holiday employees working the busiest shifts,” by adding an “extra $2 per hour” to their paychecks.
Now, in 2022, some of the same workers, the outlet writes, will have to “settle for raffle tickets” instead, as only workers at select Target stores across the US will benefit from the extra pay. Here’s everything we know:
Last Year, Target Gave Holiday Workers A Bump In Pay. This Year: Raffle Tickets https://t.co/ostzJKlWdl
— Forbes (@Forbes) November 4, 2022
Target’s Raffle Tickets & Small Prizes Instead of Extra Pay
In the stores left out of the extra pay group, Forbes explains, some employees may get a chance to win “small prizes” for taking on the more demanding shifts, but not additional pay. Target also confirmed this when speaking to the publication, noting that the Minneapolis-based chain raised starting wages to $15 to $24 an hour, and that team members, including seasonal workers, have “access to perks such as flexible scheduling and well-being benefits.”
Differences Between 2021 & 2022 Holiday Retail Jobs
When thinking about the difference between late 2021 and 2022 for Target, it's also important to remember "how much has changed in the retail labor market in 12 short months," as Forbes points out. Edward Yruma, a senior research analyst at Piper Sandler, told the outlet, "What retailers had to do [last holiday season] was effectively overstaff. The absenteeism was off the charts. Holiday work is tough, and attracting seasonal workers was particularly difficult last year."
Target did keep its goal for seasonal hiring constant in 2022, as it said it would again hire 100,000 seasonal workers. The company reported a nearly 90% year-over-year drop for its most recently reported quarter, and Forbes notes that this was largely the result of "slashing prices to clear shelves of things like grills and patio furniture that people no longer needed now that going to restaurants once again became a thing."
On Target's latest earnings call in August 2022, Target CFO Michael Fiddelke said, "If we hadn’t dealt with our excess inventory head on, we could have avoided some short-term pain on the profit line, but that would have hampered our longer-term potential." He added, "While our quarterly profit took a meaningful step down, our future path is brighter."
When thinking about inflation and the upcoming holiday season, Yruma told Forbes, "It’s been a set of circumstances that’s been unprecedented," adding, "But by and large, the consumer is still in good shape. It’s not going to be the holiday we had last year, but on a relative basis, it should be decent."
