As the holidays approach, retailers have begun ramping up their hiring of seasonal workers. Target announced its plans last week to hire 100,000 workers, while Walmart announced its plans to hire an additional 40,000.
The expansion of the two company’s workforce builds on last year’s hires, where Target added 130,000, and Walmart announced it was hiring 150,000 workers for the holiday season. Walmart also brought on another 20,000 to help alleviate supply chain bottlenecks.
Retailers have continued to raise hourly wages and benefits while increasing scheduling flexibility.
Target and Walmart will distribute the new hires into positions ranging from store and customer service associates to full-time truck drivers. In April, Walmart increased its potential first-year pay for truck drivers to $110,000 to bolster its supply chain efforts. Both companies expect 30-50% of the seasonal hires to transition to part-time or full-time roles in the new year.
After considering inflation, sales growth is expected, albeit at a more modest rate of 1-3%. Seasonal promotions will start earlier this year, and discounting will continue through the holidays to alleviate excess inventory.