Target doubles employee bonuses after strong profits

Target is doubling its bonuses this twelvemonth aft profits hit nan company's expectations during fiscal twelvemonth 2023. 

The Minneapolis-based unit behemoth is readying to salary 100% of eligible 2023 bonuses to salaried employees, nan institution confirmed to FOX Business. Last year, it was 50%.

Target confirmed that nan company's prize building hasn't changed but that it is expanding payouts owed to its profit outcomes moreover though income dipped. 

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"The prize structure is informed by goals group astatine nan opening of nan fiscal year, and includes income capacity and profit outcomes," Target spokesperson Brian Harper-Tibaldo told FOX Business. "Based connected Target’s capacity successful 2023, including nan $2 [billion] successful further profit maturation our squad delivered that exceeded nan goals we group astatine nan opening of nan year, we’re rewarding our squad accordingly." 

An worker pushes Target Corp. shopping carts extracurricular a shop successful Emeryville, California, connected February 28, 2020. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

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The institution didn't disclose really galore of its labor are eligible but that nan accrued payouts don't use to hourly workers, who dress up nan mostly of its much than 400,000 employees. 

"Like galore companies, Target offers a prize scheme for prime employees, including leaders successful our stores and proviso concatenation operations, that is designed to reward their capacity successful driving our results," Harper-Tibaldo said. 

It was still a challenging twelvemonth for nan company, which faced a diminution successful in-store visits and a dip successful income astatine stores unfastened for astatine slightest a year. 

Michael Fiddelke, Target's CFO and COO, said nan institution is still "planning cautiously" heading into 2024, fixed nan consumer-spending patterns nan institution has seen complete nan past 2 years. 

"More specifically, connected nan discretionary broadside of our business, moreover arsenic we person seen improving trends complete nan past 2 quarters, wide request remains soft," he said.

The institution expects same-store income to diminution betwixt 3% and 5% successful nan first quarter.