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Target Pulls Financial Outlook Amid ‘Unprecedented’ Demand

Target mentioned it was withdrawing its money outlook and slicing again on strategies to remodel shops as it responds to “unprecedented” client demand in the experience of the coronavirus pandemic.

Target mentioned it has been enduring “unusually powerful targeted traffic and sales” and has adjusted the timing of strategic initiatives as a consequence.

“We are prioritizing the work which is in entrance of us to aid our workforce, retail outlet operations, and provide chain as households across the nation depend on Target for all the things they want in this hard environment,” chairman and chief govt officer Brian Cornell mentioned in a statement.

Target had introduced a program to remodel about 300 shops in 2020. The corporation is slicing that variety to about one hundred thirty and getting rid of the remainder until eventually future calendar year.

The corporation mentioned it noticed a surge in targeted traffic and product sales commencing in mid-March. Thirty day period-to-date, comparable product sales are up extra than 20% around past calendar year. Equivalent product sales for February were up 3.8%. Equivalent product sales in its essentials and food stuff and beverage section were up extra than 50%.

“Over the previous several months we have professional an unprecedented surge in targeted traffic and product sales as visitors depend on our shops and exact-working day expert services. Guaranteeing we can take treatment of our workforce and produce for the tens of millions of visitors who are counting on us continues to be our leading precedence,” Cornell mentioned.

The corporation also raised its hourly wage for complete-time and portion-time employees in its shops and distribution centers by $2 for each hour until eventually at minimum Could 2. It is also providing paid go away for employees who are 65 or more mature, expecting, or have fundamental healthcare problems.

“It’s turn out to be pretty very clear that we want to be disciplined about creating confident our shops and provide chain is centered on serving our visitors devoid of any unneeded distractions,” Cornell mentioned. “We’ll want to prioritize the move of food stuff, medication, and other essentials for the foreseeable potential.”

Paul Hennessy / Echoes Wire/Barcroft Media via Getty Visuals

coronavirus, money outlook, Target