Retail

Target to give employees bonuses after strong holiday season, extends Covid-related benefits

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Key Points
  • Target said it will spend $200 million on another round of bonuses for employees and will extend its coronavirus-related benefits.
  • It will give $500 bonuses to all hourly workers and $1,000 to $2,000 bonuses to those in leadership roles, such as store directors.
  • The big-box retailer recently reported a strong holiday season, with comparable sales up 17.2% in November and December.

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VIDEO3:1203:12
Target to pay out fifth round of bonuses during the pandemic

Target said Monday it will spend about $200 million on another round of employee bonuses and extend its coronavirus-related benefits after its strong holiday season.

The discount retailer will give $500 bonuses to all hourly workers and bonuses of $1,000 to $2,000 to store directors and others in leadership positions. It said it has spent $1 billion more on employee benefits and pay in fiscal 2020 than in 2019.

Target has been one of the beneficiaries of pandemic trends, as shoppers consolidate trips, fill up bigger baskets and use curbside pickup. That pattern continued over the holidays, boosting the company's comparable sales 17.2%, while its e-commerce sales more than doubled in November and December.

This is the fifth time Target has given additional pay to workers during the pandemic. It also accelerated plans to raise its starting wages to $15 an hour in July.

It also has extended pandemic-related benefits for its workers, such as pay for those who need to quarantine or stay home from illness, access to virtual doctor visits and free backup care for employees' family members.

Target shares have risen 66% over the past year, bringing its market value to $96.1 billion. Analysts expect the company in early March to report fiscal 2020 earnings of $9.22 per share on sales of $92.71 billion, according to a survey by Refinitiv.

VIDEO5:0305:03
Hightower's Stephanie Link breaks down Target's holiday same-store sales jump