Talking Points: Target's Job Cuts & New Digital Focus
MINNEAPOLIS (WCCO) -- Last week, the news broke that Target Corp. plans to lay off several thousand employees at its Minneapolis and Brooklyn Park corporate headquarters.
The layoffs will happen over the next two years as part of a restructuring of the company. Target says it will take the $2 billion it saves from the costcutting and invest it back into the company. The result, the company says, will be a greatly improved shopping experience for consumers.
Target says 98 percent of its customers shop digitally, and part of the company's new focus is to update its website and develop new shopping apps like the popular Cartwheel.
As for shipping, the company has already slashed the minimum order for free delivery from $50 to $25. Right now, only 139 Target stores are equipped to ship online orders, but the company plans to up that to 350 stores.
David Brennan, a marketing professor with the University of St. Thomas, said that Target could have a much larger digital presence.
"Amazon, obviously, is first. Walmart is right up there," he said. "Target is really lacking or lagging in this particular area."
As for the in store shopping experience, food is getting a new emphasis. There will be a push for more organic and local products.
And while Super Targets won't be going away, most of the new Target stores that will be the smaller Target Express stores.
Watch the full interview with Professor David Brennan below.