Target Raises Minimum Hourly Wage to $11, Commits to $15 Minimum Hourly Wage by End of 2020
September 25 2017 - 8:01AM
Business Wire
Retailer Reiterates Third Quarter and Full-Year
Sales and EPS Guidance
Target Corporation (NYSE: TGT) today announced plans to raise
its minimum hourly wage for all team members to $11 in October,
along with a commitment to increasing the minimum hourly wage to
$15 by the end of 2020. This significant investment in its team
will allow Target to continue to recruit and retain strong team
members and provide an elevated experience for its guests and in
the communities it serves.
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Target Raises Minimum Hourly Wage to $11,
Commits to $15 Minimum Hourly Wage by End of 2020 (Graphic:
Business Wire)
“Target has a long history of investing in our team members. We
care about and value the more than 323,000 individuals who come
together every day with an absolute commitment to serving our
guest,” said Brian Cornell, CEO and chairman of Target. “Target has
always offered market competitive wages to our team members. With
this latest commitment, we’ll be providing even more meaningful
pay, as well as the tools, training and support our team needs to
build their skills, develop professionally and offer the service
and expertise that set Target apart.”
By moving to an $11 minimum hourly wage this fall, Target will
provide pay increases to thousands of team members across the
country before the holiday season. This increase will also apply to
the more than 100,000 hourly team members that Target is hiring for
the holiday season. The commitment to move to a minimum hourly wage
of $15 will be implemented between now and the end of 2020.
Investing in its Team
On average, Target employs 160 team members per store and offers
career planning and development opportunities, with one in four of
our store leaders having come from hourly positions within a Target
store. Also, more than 60 percent of Target team members live
within five miles of the store where they work. Target has been
recognized for its efforts to invest in its team, including ranking
on Fortune’s list of the World’s Most Admired Companies and
DiversityInc’s list of Top Companies for Diversity and being named
one of the Top 50 Companies for Executive Women.
Target currently pays market competitive rates above the federal
minimum wage at all stores nationwide. Target’s last major wage
increase was in 2016, when the company moved to a $10 minimum
hourly wage. A minimum hourly wage of $11 is higher than the
minimum wage in 48 states, and matches the minimum wage in
Massachusetts and Washington. Additionally, Target offers a variety
of schedules to meet the needs of its diverse population and works
with its teams to build schedules around their availability. With
input from its team members, Target posts store schedules in
advance, allows store team members to trade and pick up shifts at
their store location, and doesn’t do on-call or snap scheduling at
its stores.
Target offers a number of benefits for its team members,
including a 10 percent merchandise discount at Target and
Target.com and an additional 20 percent health and wellness
discount on fresh fruits and vegetables, all Simply Balanced
products and C9 merchandise. Comprehensive health and wellness
programs are available for eligible team members, including
healthcare benefits, paid parental leave, paid short-term
disability and free access to life resources such as nurse, mental
health support, financial counseling and legal services. The
company also offers financial resources for its team members,
including Target Credit Union, a dollar-for-dollar 401(k) match for
eligible team members, tuition reimbursement for GED,
Undergraduate, Graduate and Masters Degrees and tuition discounts
at many accredited schools.
Guidance Update
Target today reiterated its most recent sales and EPS guidance
for third quarter and full year 2017. Consistent with the Company’s
second quarter 2017 earnings release, Target expects both third
quarter and fourth quarter 2017 comparable sales growth will be
within the range the Company experienced in the first and second
quarters of 2017, and expects its full-year 2017 comparable sales
growth will be in a range around flat, plus or minus 1 percent.
For third quarter 2017, the Company continues to expect both
GAAP EPS from continuing operations and Adjusted EPS of $0.75 to
$0.95. For full-year 2017, the Company continues to expect GAAP EPS
from continuing operations of $4.35 to $4.55, and Adjusted EPS of
$4.34 to $4.54. The 1 cent difference between the full-year
guidance ranges for GAAP EPS from continuing operations and
Adjusted EPS is due to the income tax matters excluded from
Adjusted EPS in the first half of the year.
Third quarter and full-year 2017 GAAP EPS from continuing
operations may include the impact of additional discrete items
which will be excluded in calculating Adjusted EPS. The only
additional discrete item of which the Company is aware is a
possible net benefit from income tax matters not related to current
period operations in an amount that cannot presently be
estimated.
Miscellaneous
Statements in this release regarding third quarter, fourth
quarter and full-year 2017 earnings per share and comparable sales
guidance are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements
are subject to risks and uncertainties which could cause the
Company’s actual results to differ materially. The most important
risks and uncertainties are described in Item 1A of the Company’s
Form 10-K for the fiscal year ended Jan. 28, 2017. Forward-looking
statements speak only as of the date they are made, and the Company
does not undertake any obligation to update any forward-looking
statement.
About Target
Minneapolis-based Target Corporation (NYSE: TGT) serves guests
at 1,816 stores and at Target.com. Since 1946, Target has given 5
percent of its profit to communities, which today equals millions
of dollars a week. For more information, visit
Target.com/Pressroom. For a behind-the-scenes look at Target, visit
Target.com/abullseyeview or follow @TargetNews on Twitter.
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version on businesswire.com: http://www.businesswire.com/news/home/20170925005691/en/
Target CorporationJenna Reck, 612-761-5829Public RelationsorJohn
Hulbert, 612-761-6627Investor RelationsorTarget Media Hotline,
612-696-3400
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