Target (NYSE:TGT) Doubles Down on Customer-Friendly Strategy to Boost Sales

Bullseye on loyalty: Target's new 'friendly' pivot aims to win wallets—and Wall Street's favor.

The retail giant bets big on warm fuzzies over cold discounts. Will it pay off before the next earnings call?

Because nothing says 'shareholder value' like forced smiles at checkout. (Bonus jab: At least they're not trying to NFT their red shopping carts...yet.)

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The new plan for Target stores not only requires friendliness, but also the ability to accurately gauge distance by eyesight alone. No, really…the new policy at Target specifically requires it. Reports note that employees are now expected to smile, make eye contact, and greet or wave to every customer that comes within 10 feet of an employee. Further, anyone who comes within four feet of an employee must be asked how their day is going, or if they need help.

This oddly specific set of directives has an entire policy name, the 10-4 program. Apparently, this is an echo of a similar program—complete with measurements—that has been in place at Walmart (WMT) for decades. And apparently it works; several key consumer metrics have been shown to increase when customers are greeted or otherwise acknowledged in stores. With Target’s sales dropping over the last few years since their pandemic highs, the end result is a need to pull out any trick in the book.

For Some Reason, Now Hiring

Even as Target is rapidly laying off workers, it is actually hiring new ones. Reports note that Target’s corporate jobs are starting to see some hiring step back in, with over 200 corporate jobs available. However, these are oddly focused. Of the roughly 200 jobs available, 82 of them are in India, and the rest are focused on Minneapolis.

Interestingly, over half the listed jobs—around 130 of them—were posted after Target staged mass layoffs back on October 23. Positions include product designers, engineers, and data analysts, among others. These are considered “primary roles,” according to insider reports.

Is Target Stock a Good Buy?

Turning to Wall Street, analysts have a Hold consensus rating on TGT stock based on seven Buys, 13 Holds and five Sells assigned in the past three months, as indicated by the graphic below. After a 40.48% loss in its share price over the past year, the average TGT price target of $102.33 per share implies 13.61% upside potential.

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