Archived ABC: Target Reports Declining Revenue in First Quarter

[shortstuffishere]

We are actually cutting hours atm. A TL told me we haven't made sales in like two weeks.

 

[Rustyshackelford]

I think the way it works is, corporate is divvying up payroll from places that are doing well to places that are sort of dumpster fires. Here in SC, ever since our bathroom decision, we went from being +-5% ahead of corporate's sales goal, to just last week being the first time we had a day where we weren't tens of thousands off of our sales goal. (And our sales goals are usually measured in 10's of thousands of dollars) The fact that we have hours at all is only from corporate reallocation. Even though I agree with the policy and its intentions, I can't help but point out that they are using us in Evangelical red states, as the sacrificial lambs to appease a customer base that just isn't here. But, that's life.

 

[Greenandred]

Apparently Wal-Mart had a good quarter. Of course some people are claiming this is because of the bathroom policy, but I don't think it's true.
Wal-Mart surprises with higher-than-expected Q1 revenue and profit

 

[Produce Queen]

So far this month we're -200k from forcast. B volume PFresh. It's really really slow lately.

 

[Greenandred]

With the sluggish sales and the expanded selection of chicken and steak from the reset in P-Fresh, we have experienced a lot of qmos in our donation area of the freezer. I try whenever possible to offer it up to the team at a rock bottom discount but don't always get takers. Hopefully sales go up soon. Today our volume seemed steady.

 

[TM2]

So they set sales goals yearly, and along with those goals come the allocated hours. Hours in a monthly bank, but that bank goes up or gets reduced depending on each weeks sales. If you're with 3% of goal on either side, there's no change. More than 3% above or below sales for a week and the hours bank for the month adjusts accordingly. What most stores are doing now is cutting quite a bit in anticipation that they'll have to in order to make goal.

 

[POG997]

So they set sales goals yearly, and along with those goals come the allocated hours. Hours in a monthly bank, but that bank goes up or gets reduced depending on each weeks sales. If you're with 3% of goal on either side, there's no change. More than 3% above or below sales for a week and the hours bank for the month adjusts accordingly. What most stores are doing now is cutting quite a bit in anticipation that they'll have to in order to make goal.

This is what my store is doing. The backlash against the bathroom policy took our district somewhat by surprise and necessitated some very sudden and drastic payroll cuts last month, so this month we've been running on bare minimum staffing to make sure that there are hours left at all at the end of this month if sales don't pick up. Luckily they have been trending up the last little bit so hopefully next month will be less drastic.

 

[RedDog]

Apparently Wal-Mart had a good quarter. Of course some people are claiming this is because of the bathroom policy, but I don't think it's true.
Wal-Mart surprises with higher-than-expected Q1 revenue and profit

Target had the better quarter, Walmart 1% increase in same store sales and Target a 1.5% increase in same store sales. Both did better than expected. Targets revenue drop was from no longer having pharmacies or clinics. The bathroom thing will have the same effect as the same last dozen boycotts, that is to say none.

 

[SoftlinesSleuth]

My store has to cut almost 400 hours and we haven't made sales in a couple weeks. We're down to 5 closers for the whole sales floor and not calling in to replace people. Usually we have 7-12 people depending on the day. Zone and reshop are getting out of control.

 

[BlueSide]

Apparently Wal-Mart had a good quarter. Of course some people are claiming this is because of the bathroom policy, but I don't think it's true.
Wal-Mart surprises with higher-than-expected Q1 revenue and profit

Yes, but let's not forget that Walmart projected 0% growth for itself lol.

So far this month we're -200k from forcast. B volume PFresh. It's really really slow lately.

😱 were -14k and 10 of that is from this week.

 

[Rolling CAFS]

Payroll is tricky...you flex up and down based on sales and hours used vs scheduled. Our store has a no OT work what you're scheduled policy. Sales are generally made and the last week of the month due to hours flexing up we tend to extend and add. Scheduling is all up to your store and how they distribute and bank hours. We have a weekly Call me if needed sign up sheet to cover call outs and those are the first ones called . Target isn't doing as bad as they'd have you think.

 

[TeamRed]

I haven't noticed foot traffic being down... We are busier than ever. The only slow days for us are usually Monday nights not many people seem to shop those days for some reason.

 

[redeye58]

Balancing current payroll needs against last year's sales is like twerking on a tightrope: the results aren't pretty & someone's always gonna fall.

 

[Cullsfordays]

I know at least at our store for the last month or so we've only been making sales ~60% of the time and supposedly we're doing better than most stores in our group. I do know that we're down quite a bit from last years sales.
My guess is that corporate is trying to divvy up hours between all stores but I'm scared of another Canada incident.

 

[tgtguy]

I am in the South and our sales have been awful. As of now, we have only made sales three days this month. If you are lucky enough that they don't cut your hours....you are told that you have to leave on time.Stores in my district are in the same boat. Hopefully, the whole bathroom issue will calm down shortly.

 

[Blackbutler42]

I no longer work at Target but the last few times I went to visit my store it seemed a little slower than usual.

I also live in the deep south were many people are southern baptist. As far as I know hours are okay. The guest service girl got like 30 hours

 

[craycray]

😡 Target more worried about who uses the bathroom, than taking care of their own employees welfare. They cut the hours from every dept in the store. We get lower pay checks as a result now with this negative press my 401k is down 11%.😡😡😡

 

[Flow Warrior]

Our hours are being cut... Yet flow seems to be staying just as long as they always do without any cuts or being told to leave early. Doesn't seem right.

I need to transfer to your store. Your STL and ETL-log dont want to push freight so they let them stay. Mine has no problems.

 

[Hardlinesmaster]

From spot Corp:
Investor Contacts, News, Stocks & Events | Target Corporate

 

[Infinim]

Need to keep in mind that districts themselves have one large payroll pot. It's dished out to all stores based on the year before. If some stores make sales, and others don't then hours need to be adjusted down to compensate. So your store could be hitting all their sales forecasts, but the other stores aren't. The other stores are cut back, and if that isn't enough or they have hit the bare minimum function mode, and if that happens then the other stores in the district chip in their hours. In the end the districts need to keep the sales😛ayroll ratio in balance.

It isn't just a STL wanting that large bonus (there are 100 points that make up the bonus for STL/ETLs, and payroll is a small amount of it) it's the DTL needing to gain control of their area so their boss doesn't crap on them. In the corporate world, those who are on that high of a level can be forced out pretty quickly. So they play the politics and run their areas by the standard Spot wants them to. As soon as one falls out of favor, that Group or District Leader maybe pushed out for that big shot making their forecasts from Random major chain, Amazon or something.

 

[HardlinesFour]

It's worth noting.. that almost every retail chain is doing bad at the moment. Consumers just aren't spending money...

 

[Greenandred]

Just got home. We seemed very busy tonight.

 

[Unsilent]

It's worth noting.. that almost every retail chain is doing bad at the moment. Consumers just aren't spending money...

It's more that retail's trend is going online, and will continue to do so as millennials and beyond will never know a world without Amazon. There was a Marketplace segment about how Generation X was pretty much the last to spend their youth as mall rats. Physical retail space is slowly but surely going the way of the dodo, with the exception of the highest-end retail, or retail that provides an inimitable customer experience.

Half of guests in electronics are looking for things Spot just does not or will not carry, and my only real recourse in helping them out is directing them towards Amazon.

 

[redeye58]

It's worth noting.. that almost every retail chain is doing bad at the moment. Consumers just aren't spending money...

Add to the mix that more younger adults are going back home/staying with parents longer because of college debt/high rent/inability to find a job with a living wage.
As a result, the younger generation isn't buying large appliances, cable, cars, etc when they can simply borrow Mom & Dad's.
The only purchases they DO make are gaming systems, smart phones, et al.