Target to give employees bonuses after strong holiday season, extends Covid-related benefits

An employee outside a Target store in Clifton, N.J.

Adam Jeffery | CNBC

Target said Monday it will spend about $200 million on another round of employee bonuses and extend its coronavirus-related benefits after its strong holiday season.

The discount retailer will give $500 bonuses to all hourly workers and bonuses of $1,000 to $2,000 to store directors and others in leadership positions. It said it has spent $1 billion more on employee benefits and pay in fiscal 2020 than in 2019.

Target has been one of the beneficiaries of pandemic trends, as shoppers consolidate trips, fill up bigger baskets and use curbside pickup. That pattern continued over the holidays, boosting the company’s comparable sales 17.2%, while its e-commerce sales more than doubled in November and December.

This is the fifth time Target has given additional pay to workers during the pandemic. It also accelerated plans to raise its starting wages to $15 an hour in July.

It also has extended pandemic-related benefits for its workers, such as pay for those who need to quarantine or stay home from illness, access to virtual doctor visits and free backup care for employees’ family members.

Target shares have risen 66% over the past year, bringing its market value to $96.1 billion. Analysts expect the company in early March to report fiscal 2020 earnings of $9.22 per share on sales of $92.71 billion, according to a survey by Refinitiv.

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