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Target is giving 350,000 workers an extra $200 bonus for the holidays

Target announced on Monday it will give 350,000 workers a $200 holiday bonus this year to show appreciation for efforts during the COVID-19 pandemic. Yahoo Finance’s Brian Sozzi joins Zack Guzman to break down the details.

Video Transcript

ZACK GUZMAN: I want to highlight some major moves in terms of giving frontline workers a big boost here in the season. That would be Target announcing they're going to be giving a bonus here to about 350,000 workers across the company.

And joining us for more on that is Yahoo! Finance's Editor at Large, Brian Sozzi. And Brian, I mean, it's a boost. A boost is always a good thing here.

BRIAN SOZZI: Yeah, let's put some more paper or greenbacks in the worker-- in the hands and the pocketbooks of workers. And Target is doing the right thing here. You look at the average day in a retail worker. They show up in the morning. They're inundated. Now they have to hand-sanitize baskets. They have to deal with new customer requests in the store. Oh, yeah, and they also have to head over to a shelf and take some hand sanitizer and ship it off to an online guest that just placed the order, and they want their order in an hour and a half.

This deal-- $200 extra for 350,000 workers, which comes out to $70 million-- is the cost of doing business now for Target, and I suspect many other retailers. I would not be surprised over the next week to see more retailers come out there and offering their workers bonuses. A lot of these retailers have pulled back in recent months on what we have been calling pandemic pay. It's time to bring it back. Bring it back now. Give these workers bonuses. They're working their butts off.

ZACK GUZMAN: Yeah. And critics might say, you know, 200 doesn't seem like a lot. But Target has also been pushing efforts here to get up to $15 an hour minimum wage for a lot of the positions there. So talk to me about that, and how that also might be contributing to some pressure in terms of paying workers in the retail space.

BRIAN SOZZI: Yeah, Target and Walmart, they've been duking it out back and forth throughout this year on raising wages for workers, giving them bonuses, and in many respects, doing it right. And now what I would be concerned-- if you're a Dollar Tree or a Dollar General, you sell cheap garbage in a dollar store, how are you going to pay your workers $15 an hour to prevent them from going and putting in an application at Target and Walmart? You can't do it. That's not how your business model works.

I suspect a lot of these raise, increases-- from Target, Walmart, you have Amazon, with their warehouse workers-- will trickle down into retail, and a lot of those retailers struggling-- I look at Macy's-- how are you going to pay your workers $15 an hour? I wish you well.