Full Video Transcript Below:
MARTIN BACCARDAX: The numbers are really interesting. 100,000 or close to it seasonal workers that Target (TGT) is looking to hire heading into the holiday season, so their expectations are for a bit more robust sales than some of the others are anticipating. Walmart (WMT) had said earlier this week it’s probably only going to hire around 40,000 people. So that’s a big difference between the two companies. And it sort of indicates the difference that many retailers are experiencing as we head into sort of October and then things ramp up quickly into Thanksgiving and beyond.
We’re probably going to see retail sales over that period rise, notably between sort of maybe 5 to 7%, according to a Deloitte study. But that’s going to be significantly slower growth than we saw last year when people were spending the last of the pandemic stimulus. So I think what we’re seeing now is people looking at spending out of their own pocket and being much more value oriented as a result of surging inflation. So that is probably the biggest difference. From a wage point, J.D. we’re looking at somewhere in the region between $17 and $24 an hour for Target. They had only boosted their wage levels just a few months ago. Again, it has to be said because it’s been difficult to attract labor in a market that’s as tight as this and where many people are just reluctant to come back into a job market that was, of course, just shaken completely to its core as a result of the pandemic. So those numbers are reasonably solid and that will probably add to wage growth going forward.