What's Happening?
Target has introduced a new directive requiring in-store employees to engage more actively with customers as part of its strategy to enhance holiday sales. The initiative, known internally as the '10-4 program,' mandates that employees smile, make eye
contact, and greet or wave to any shopper within 10 feet. If a customer comes within four feet, employees are instructed to ask if they need help or inquire about their day. This move is part of Target's broader effort to improve customer experience across its nearly 2,000 locations nationwide. The company has been facing sluggish sales, with a reported 1.9% decline in comparable sales year-over-year in the second quarter of 2025, despite a 4.3% increase in digital sales. Target's Chief Stores Officer, Adrienne Costanzo, emphasized the importance of increasing customer connection during the holiday season.
Why It's Important?
The implementation of the '10-4 program' is significant as it reflects Target's strategic shift towards enhancing customer experience to combat declining sales. With Target shares down over 30% this year, compared to a 14% gain for the S&P 500, the company is under pressure to attract cost-conscious shoppers who are increasingly focused on necessities. By investing approximately $4 billion in new stores, remodels, technology, and supply chain upgrades, Target aims to restore its appeal and regain customer loyalty. The initiative also highlights the competitive retail environment, where rivals like Walmart are intensifying efforts through price cuts and store remodels.
What's Next?
Target is expected to report its third-quarter earnings later this month, which will provide further insight into the effectiveness of its new customer engagement strategy. The company is also testing new store formats and digital fulfillment models to improve efficiency and reduce out-of-stock issues. In Chicago, certain locations are handling more online orders, while others focus solely on in-store service. These efforts are part of Target's broader plan to deliver a consistently positive shopping experience and adapt to changing consumer behaviors.
Beyond the Headlines
The '10-4 program' may have deeper implications for employee morale and workplace culture at Target. While the initiative aims to improve customer experience, it also places additional expectations on employees, potentially affecting job satisfaction and stress levels. The program's success will depend on how well employees adapt to these new requirements and whether they feel supported by management in executing them.
