Target Debuts One-Year Return Policy, Raises Minimum Wage
Minneapolis-based retailer Target Corp. continues to overhaul its business under new CEO Brian Cornell.
On Wednesday, the company announced a new “enhanced return policy” that allows customers to return select items up to one year after the date of purchase. The new policy applies the 32 brands that are owned by or are exclusive to Target. The one-year guarantee also applies for customers using the retailers’ baby, college or wedding Gift Registry.
“At Target, we’re putting our guests first and are committed to offering a shopping experience that’s inspiring and rooted in ease,” said Kathee Tesija, chief merchandising and supply chain officer for Target, in a statement announcing the new policy. “Our enhanced return policy offers our guests convenience we think they’ll appreciate, while providing additional assurance of the quality of owned and exclusive brands found only at Target.”
In February, the company announced that it would drop its free shipping minimum to $25 for online orders, down from the previous minimum of $50.
On Wednesday afternoon the Wall Street Journal reported that Target was raising the pay for all of its workers to $9 an hour in April, following other retailers such as Wal-Mart that have recently announced wage increases.
Target has announced plans to open 15 new stores in its fiscal 2015, with an emphasis on new, smaller-format concepts. Plans call for the company to open 8 TargetExpress stores, 1 CityTarget and 6 general merchandise big box outlets. Target will open a new TargetExpress location in the Highland Park area of St. Paul in July.
Under Cornell, the company is trying to update its business after dealing with the fallout of a massive data breach and its abandonment of Target’s retail expansion into Canada.
Yesterday Twin Cities Business reported that Target will realize a $1.6 billion tax benefit for losses connected to its Canadian exit, a detail disclosed in the company’s annual filing with the U.S. Securities and Exchange Commission. The filing also noted that the data breach has cost the company $252 million to date, but that it expects to recover $90 million through insurance.