UPDATE 1-Target looks to double bonuses this year, Bloomberg News says
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March 21 (Reuters) - Big-box retailer Target is doubling the bonuses for its salaried employees this year, Bloomberg News reported on Thursday, citing people familiar with the matter.
The company will pay 100% of employees' eligible 2023 bonuses, up from 50% last year, the report said, adding that the increased payouts do not apply to hourly employees and senior executives would have a separate bonus structure.
"Based on Target's performance in 2023, including the $2 billion in additional profit growth our team delivered that exceeded the goals we set at the beginning of the year, we're rewarding our team accordingly," the company said in a statement.
The bonus increase comes as Target expects a recovery in sales in 2024 after it posted upbeat holiday-quarter profit, helped by lower freight and supply-chain costs, healthy inventory and lower markdowns.
The retailer, whose shares have gained almost 20% this year, is in the middle of launching a new membership program to boost spending at its stores.
As of Feb. 3, the company employed about 415,000 full-time, part-time and seasonal team members, according to a regulatory filing. (Reporting by Granth Vanaik in Bengaluru; Editing by Arun Koyyur)
