Over the past few years, Target (TGT) has seen its sales weaken amid inflation and controversy over some of its policies.
In Target’s first-quarter earnings report, it revealed that its comparable store sales declined by 3.8% year-over-year. Recent data from Placer.ai also found that the number of customers visiting Target stores per location decreased by 4.8% year-over-year during the quarter.
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The lower consumer demand comes amid heightened concerns about inflation and the threat tariffs pose to further increase prices for everyday goods. Target is also still facing outrage for scaling back its diversity, equity, and inclusion initiatives in January, a decision that has caused several consumer boycotts.
Related: Target has another big problem amid alarming customer behavior
During an earnings call in May, Target CEO Brian Cornell said the company will open a new Enterprise Acceleration Office to simplify its operations. Target will also make several organizational changes to “bring even more clarity and speed” to how it conducts business and advances its strategy.
“With the Enterprise Acceleration Office, we’re changing how we operate, create the conditions for our team to advance our priorities more quickly, and remain adaptable to the changing landscape for our business,” said Cornell during the call.
Target employees get a major warning
Amid this new effort, Target is pushing more of its corporate employees to return to working in person, scaling back remote work.
On July 10, Target employees in merchandising and sourcing received an email that warned them they will be expected to work from the company’s Minneapolis headquarters office three days a week, starting Sept. 2, according to a recent report from Twin Cities Business.
Over the past few weeks, multiple Target corporate departments have received similar notifications.
“More time together, in the office, will help us grow our business faster, solve problems quickly, and build stronger relationships,” wrote Target Chief Commercial Officer Rick Gomez in the email.
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He also said that employees will have the freedom to create their own schedules and choose which three days work best for them and their teams to work in the office.
“Our goal here is to align around a common expectation that allows us to maximize the potential of our hybrid, remote, and global commercial team and move forward with clarity, connection, and purpose,” wrote Gomez.
In a statement to Twin Cities Business, a Target spokesperson highlighted that employees enjoy in-person work.
“Team members tell us they see the benefit from the in-person connection and collaboration that’s a part of being in the office,” said the spokesperson. “At this point, individual leaders are empowered to make decisions for their teams based on company guidance as well as what’s best for the role they play in our business.”
Target joins a controversial workplace trend
The move from Target comes as many companies such as Amazon, JP Morgan Chase & Co., and Dell have also recently cut back remote work, even going as far as requiring employees to return to working in the office five days a week.
Many companies have cited increased “innovation” and “collaboration” as the reasons for returning to in-person work full time.
More Labor:
- Amazon CEO warns employees of a harsh new reality
- IRS sends stern warning to employees after layoffs
- Google sends a harsh message to employees after layoffs
These efforts, however, can potentially backfire for companies, as many U.S. employees are not ready to erase remote work, which offers benefits such as improved work satisfaction, increased productivity, and financial savings.
According to a recent survey from FTI Consulting, 88% of remote workers said they would be willing to work in the office for at least some portion of the week, with 33% indicating no more than two days.
“We have all seen the headlines about the return-to-office mandates by some of the nation’s largest employers, with some companies reporting that they expect all of their workers, with few exceptions, to return to the office full time in 2025,” said Senior Managing Director Josh Herrenkohl in the report. “But our research shows that their ability to implement this mandate is not cut-and-dry, and employers risk losing talent if RTO mandates are enforced.”
As more U.S. employers enforce return-to-office mandates, office foot traffic is still below pre-pandemic levels. According to recent data from Placer.ai, nationwide office visits last month were down just 27.4%, compared to June 2019. However, visits were up 8.3% compared to June 2024.
Related: Amazon gives employees a harsh ultimatum amid layoff fears
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