retail news in context, analysis with attitude

BuzzFeed reports that Target CFO John Mulligan has called an across-the-board wage increase to match similar moves by Walmart and TJ Maxx "unreasonable," saying that such an increase would reflect “an arbitrary number that’s some flat rate that we’re going to pay across the country.”

However, Mulligan also said that Target "may not have been clear enough in expressing that it intends to 'pay what we need to pay to get a great team'."

Meanwhile, Target confirmed Tuesday "that it is laying off 1,700 workers and eliminating another 1,400 unfilled positions as part of a restructuring aimed at saving $2 billion over the next two years."

According to the BuzzFeed story, "the company’s refusal to set a minimum has drawn the scrutiny of advocacy group UltraViolet. The group’s co-founder, Nita Chadhary, questioned the retailer’s honesty in a statement to BuzzFeed News, accusing the chain of keeping its wages 'cloaked in secrecy'.

"UltraViolet said it took on the cause because nearly two-thirds of minimum-wage workers are women. It’s running online ads in Minnesota, Pennsylvania, and Nebraska."
KC's View:
It's only unreasonable as long as it is defensible and does not impact business.

There is a certain irony that the online ads being run by UltraViolet include calls for people to shop at Walmart rather than Target because of the wage issue ... and when was the last time a group advocating for women decided to cast its lot with Walmart?