Retailers are trying to adapt to a world where shopper behavior is changing and competition for online spending is fierce, writes The Wall Street Journal (Dec. 2, 2019). Target, Walmart, and other retailers are staffing stores differently in an effort to meet new competitive challenges, as well as attract workers and control payroll costs amid the tightest labor market in decades. (Online sales reached $7.4 billion on Black Friday, up from $6.2 billion last year, while foot traffic to U.S. stores fell 6.2%). Big chains have posted strong sales in recent years by adapting to the shift to online shopping. They use their stores to handle deliveries or convince shoppers to pick up orders rather than wait for an Amazon package.
Target says it now sources 80% of its online orders from stores, not warehouses. At the Brooklyn store around 80 workers handle internet orders, collecting products from shelves or putting items into boxes in the backroom for delivery. Target retrained the bulk of its 300,000 U.S. workers over the past year, giving them new titles and responsibilities. It hopes to mold each into an expert for a specific area of the store such as the beauty department, toys or online fulfillment to offer better customer service and use labor spending more efficiently.
Under the new staffing system, more Target workers are responsible for the full chain of tasks needed to keep their department well stocked and shoppers happy, including finding products in the backroom and stocking shelves, tracking inventory and answering shoppers’ questions. Target added technology on hand-held devices to guide workers through the store more efficiently to gather or send out online orders. And more workers are putting products on shelves during the day, not at night, to be able to help customers at the same time.
Walmart uses stores to fulfill its online grocery orders, and is increasingly relying on stores for other types of e-commerce orders.
Classroom discussion questions:
- Compare Target’s approach to that of Amazon.
- Â What is Target doing to increase operational efficiency?