Advertisement

Target Plans To Cut Thousands Of Jobs, Save $2 Billion During Business Transformation

At a meeting with investors, Target Chairman and CEO Brian Cornell and his leadership team revealed a new vision designed to transform business operations and consumers’ perception of the brand.

Over the next two years, Target plans to save $2 billion by improving technology and processes; streamlining supply chain and sourcing efficiencies; and restructuring the corporate workforce through significant job cuts.

During the restructuring process, thousands of employees within Target’s headquarters in Minneapolis, Mo., will be laid off. This move is expected to help the retailer operate with greater speed and agility, according to Target executives. New, centralized teams will be created based on employee expertise.

Advertisement

“While we’re in the early days and there’s no doubt that transformation can be challenging, we’re taking the steps necessary to unleash the potential of this incredible brand,” Cornell said. “I’m encouraged by our early momentum, and am confident that by implementing our strategy, simplifying how we work, and practicing financial discipline, we will ignite Target’s innovative spirit and deliver sustained growth.”

In 2015, Target plans to spend up to $2.2 billion on new initiatives, including $1 billion on technology and supply chain operations.

To inspire innovation and growth across the entire enterprise, Target also plans to focus on:

  • Improving omnichannel capabilities: Target guests who shop both in-store and online generate three times the sales of those who only shop in stores, according to a company press release. The retailer also expects to see digital channel sales grow by 40% and boost total sales between 1.5% and 2.5% in 2015. As a result, the retailer plans to focus on creating a complete brand experience across stores, e-Commerce and mobile.
  • Style, Baby, Kids and Wellness categories: These merchandise categories are being prioritized in 2015, with Target focusing on providing differentiated brands and products. In 2014, these four categories accounted for 25% of Target’s total sales.
  • Repositioning grocery: In order to compete more effectively with Walmart and other retailers that are expanding into grocery, Target is repositioning its grocery offerings to be more appealing to shoppers.
  • Tailoring assortments: Target is striving to create a more “guest-centric” experience by offering locally relevant products based on demographics, climate, location and other factors. By strengthening its data and analytics capabilities, the retailer also plans to further personalize digital experiences, loyalty programs and promotions.
  • New store formats: Over the next year, Target plans to open new stores using the TargetExpress and CityTarget formats, which are smaller formats designed to cater to more dense urban areas. 

 

Featured Event

Join the Retail Trendcaster Webinar Series to uncover key 2025 retail trends, from AI and personalization to social commerce. Gain expert insights, data-driven predictions, and actionable takeaways to stay ahead in a rapidly evolving market.

Advertisement

Advertisement

Retail Trendcaster Webinar Series
Days
Hours
Minutes
Seconds

Uncovering What’s Next in Retail

March 17-19, 2025  |  Free On-Demand Digital Event

Q1 is a pivotal time for retail, with experts analyzing holiday sales and forecasting trends. Join Retail TouchPoints’ Retail Trendcaster webinar series for insights on consumer spending, AI, personalization, social commerce, and more—helping you focus on what truly matters in 2025.

Brought to you by
Retail TouchPoints
Register Now
Retail TouchPoints is a brand of Emerald X LLC. By clicking the button and submitting information, you acknowledge and agree that your information may be shared with corporate affiliates of Emerald X LLC, and other organizations such as event hosts, speakers, sponsors, and partners. Please read our Privacy Policy and our Terms Of Use for more information on our policies.

Access The Media Kit

Interests:

Access Our Editorial Calendar




If you are downloading this on behalf of a client, please provide the company name and website information below: