Target Raises Starting Pay Cap to $24 an Hour

The retailer also will enable SNAP customers to buy eligible grocery items online for curbside and in-store pickup.

March 02, 2022

Target Employees

MINNEAPOLIS—Target is setting a new wage range with some hourly employees receiving up to $24 an hour, according to a news release. The company is also expanding its health care coverage.

Target employees could receive pay from $15 an hour up to $24 an hour. The range applies to hourly team members working in Target stores, supply chain facilities and headquarters locations. The exact starting wage within the range will depend on the job and the local market, with market-level wages set by the retailer based on industry benchmarking, local wage data and other factors.

Beginning in April with its new benefits cycle, Target also will allow more employees access to health care coverage. Target says 20% of its employees will now be newly eligible for health care benefits. Hourly store team members who work a minimum average of 25 hours a week will be eligible to enroll in a Target medical plan, down from the previous requirement of 30 hours per week.

Target also will reduce the waiting period for all eligible hourly team members to enroll in a Target medical plan. Depending on position, eligible team members can access comprehensive health care benefits three to nine months sooner.

The company is also providing additional benefits, including free, virtual physical therapy, enhanced fertility benefits and other new wellness offerings, as part of most Target medical plans. Team members also will gain faster access to 401(k) plans.

The company also announced investments to expand capacity and capabilities in its stores, digital experience and supply chain. It plans to invest up to $5 billion to continue scaling its operations in 2022.

Target is enhancing its digital experiences by enabling Supplemental Nutrition Assistance Program (SNAP) customers to purchase eligible grocery items on, building on its SNAP payment capabilities in stores. Customers will be able to shop for SNAP-eligible items online and choose Target’s free, same-day services Drive Up and Order Pickup. Walmart and Amazon have been piloting online orders with SNAP payments. For more information on the Supplemental Nutrition Assistance Program, see the NACS Advocacy Page for SNAP.

Target plans to open about 30 stores this year, ranging in footprint from midsize locations in dense suburban areas to small-format stores in city centers like Charleston, S.C., and New York’s Times Square. Target also plans to remodel 200 stores from top to bottom this year, reaching more than half the chain since beginning this effort in 2017. Target says it will complete “hundreds of smaller projects” across its stores to support the growth of its fulfillment services and expand in-store brand partnerships.

According to the release, Target’s same-day fulfillment services have grown nearly 400%, accounting for more than half of the company’s $13 billion digital growth. Target announced last week that it will test the option for guests in select markets to add a Starbucks order or make a return within Target’s curbside service through the Target app. The company now says that the service will be available in select stores ahead of the holiday season.

Target reported 9% sales growth in the fiscal fourth quarter, despite supply chain pressures, driving Target shares up nearly 10% at close yesterday, reports CNBC.