Retail workers hoping for a foot in the proverbial door may not need to wait any longer as holiday hiring season is about to start.
First out of the gate with holiday hiring plans among the major discounters and department store retailers is Target, which said it plans to hire 100,000 seasonal workers across its stores and supply chain facilities. They will help with Order Pickup and Drive Up, stocking shelves and getting holiday purchases to its stores and customers as quickly as possible. The discounter said the hires will have “opportunities for growth and development. Seasonal roles often are a gateway to a continued career journey with Target.”
Target, which said that anyone interested may apply starting on Sept. 25, made the hiring disclosure in an announcement about holiday shopping plans. “From only-at-Target exclusives to the return of Target Circle Week and great deals every day, our plans are unmistakably Target and will add extra sparkle and delight to the holidays,” Rick Gomez, the retailer’s executive vice president and chief commercial officer, said.
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Target Circle Week deals run from Oct. 6-12, with each day featuring its popular Deal of the Day program. The one-day-only deals will return Nov. 1 through the rest of the season for Target Circle members. Target’s plans include 50 percent more new items than last year, including exclusive partnerships. The discounter’s partnership with British department store retailer Marks & Spencer will return, this time expanding beyond food and beverage items to include London-themed ornaments and mugs. And the retailer will introduce its new Bullseye shop section in about 200 doors, where most Target-themed holiday gifts are under $25.
This year’s seasonal hiring plans are in line with last year’s 100,000 workers, and represents roughly the same number hired for the last three years, but still down from the 130,000 seasonal hires in 2019.
Other major retailers are expected to disclose their plans later this month. Walmart hired 150,000 in 2021, but dropped that number to just 40,000 in 2022. The mass discounter over the years has also made investments in high-tech automation systems, moves that created efficiency and likely negated the need for substantial staff hiring over the holidays. Walmart last year did not disclose how many seasonal workers it hired.
Macy’s last year hired about 38,000 workers for the holidays, less than the 41,000 it recruited in 2022 and half of the 75,000 it hired in 2021. The retailer has been shrinking its store base over the years, and earlier this year said it would shrink the store network by 150 locations by the end of 2026. Some of those locations are expected to be part of a previous disclosure targeting 125 department store doors that had been put on temporary hold. And with fewer stores, it might not need as many hires for holiday 2024.
A Deloitte holiday forecast is predicting retail sales to grow 2.3 percent to 3.3 percent, totaling between $1.58 trillion to $1.59 trillion. E-commerce sales are expected to rise between 7 percent and 9 percent year-over-year, growing to between $289 billion and $294 billion this year.
Even with inflation holding steady and possibly starting to ease slightly, Bain & Co. is forecasting what it describes as a “subaverage” 3 percent growth in U.S. retail sales this holiday season. Apparel and accessories stores could see growth in the low single digits between 1 percent to 5 percent, while department stores could see a decline in the low single digits, down 1 percent to 5 percent. Areas that could help retailers boost sales include emphasizing value, regardless of price point, and delighting shoppers with up-skilled holiday staff and more fulfillment options, including fast shipping and easy returns, according to Bain.
Some data points, as well as commentary from retail CEOs during second quarter earnings conference calls last month, indicate that consumers are more mindful about where and how much they are spending. That means retailers will have to work smarter to get consumers to part with their hard-earned dollars.
Neil Saunders, GlobalData’s managing director, retail, said retailers will have one eye on the bottom lime, so he expects hiring should be about the same as last year, or slightly lower. “The truth is that with the rise of omni-channel and an increasing demand for good service, retailers can’t cut staffing levels by too much for fear of alienating customers,” he said.
Saunders expects that this holiday season will be reasonable and there will be some growth in spending that will benefit retailers. “However, retailers are going to have to work very hard to secure this by offering compelling products and great bargains,” he said. “Consumers are thinking more carefully about what they are buying and they still are not in the mood to splash out as they have done in recent years.”
“The demand for seasonal staff remains strong as retailers need to meet the surge in holiday traffic and maintain a positive customer experience. Digital workplace tools like WorkJam allow businesses to manage shifts more efficiently, making it easier to adapt to fluctuations in demand and optimize labor costs,” Steve Kramer, WorkJam’s CEO and co-founder said. He added that retailers can improve retention and satisfaction among those hired through a flexible work schedule, regular communication and training opportunities, particularly because engaged workers are “more likely to stay with the company beyond the holiday season.”
Piyush Patel, chief strategic business development officer for AI search platform Algolia, said, “Continued adoption to buy online and pick-up in-store means more people in fulfillment roles, more in luxury purchasing, more in delivery.”
What isn’t clear yet is how many seasonal workers parcel delivery firm UPS might hire this year. Last year, it hired more than 100,000 for the busy holiday season, but then ended up laying off 12,000 workers this past January. And Amazon, which just told its corporate staffers to return to the office five days a week starting next year, is gearing up for its October Prime Event in a few weeks. The e-commerce marketplace firm in April said it planned to chop jobs across sales, marketing and global services in its Amazon Web Services division. Amazon has yet to disclose seasonal hires for 2024. Last year, it hired 250,000 U.S. workers for the holiday season.
