Target Corporation (NYSE:TGT) announced today that it will be hiring 80,000 to 90,ooo temporary workers for the holiday season. The number is slightly lower than the 92,000 seasonal workers hired by the retail company last year.
Although the company plans to hire fewer seasonal employees this year, Target Corporation (NYSE:TGT) explained that 30 percent of the temporary workers hired during the holiday season were retained for full-time positions. This means the retail company has more employees to drive its sales.
A report from the Wall Street Journal cited that retail executives estimate that their sales outcome for the holiday season this year will remain the same as last year.
Target Corporation (NYSE:TGT)’s decision to hire fewer seasonal workers this year indicates that the company is less optimistic and more cautious.
On the other hand, Kohl’s Corporation (NYSE:KSS) is more optimistic as the company plans to hire more temporary workers for the holiday season. The company plans to add 41 temporary workers for each of its stores in the United States. There are 1,146 Kohl’s stores all over the country. This means, the company will be hiring more than 50,000 temporary workers, as the company plans to hire additional 5,700 workers in its distribution centers and 30 employees to fill positions for its credit operations.
At Kohl’s, temporary workers will be able to work for a maximum of 20 hours per week. Generally, store duties include cash register, merchandising, stocking, unloading trucks, freight processing, and many others. The company started hiring this month.
According to Doug Hart, partner at the retail practice accounting and consulting firm BDO USA, generally the level of confidence in the seasonal business is indicated by the retailers’ holiday hiring.
In addition, Hart said based on the survey conducted by his firm, the chief financial officers within the retail industry project a 3.6 percent increase in same-store sales during the first six months of the 2013 fiscal year. The estimate is close to their 3.5 percent expectation last year.
Hart said, “Retailers aren’t counting their dollars just yet. Forecasts are cautious, as retailers closely watch unemployment, election results, and inventory levels–any of which could throw a wrench in holiday results.”
On the other hand, a survey conducted by the Hay Group, a management consultancy firm, revealed that 57 percent of companies in the retail industry expect to hire the same number of seasonal help this year, while the remaining 43% plan to hire more workers.
