This Omni Talk Retail Fast Five segment explores Target’s decision to require remote merchandising employees to relocate to Minneapolis or leave the company.
Chris Walton and Jenn Hahn discuss whether in-person collaboration is necessary for creativity, why retailers are rethinking remote work, and what this says about leadership during a turnaround period. They also debate whether executives should be held to the same standards as employees when it comes to return-to-office expectations.
⏩ Tune in for the full episode here.
#Target #RetailLeadership #RemoteWork #RetailNews
We begin today with Target and why it's telling.
Speaker A:150 Remote merchandising employees relocate to Minneapolis or take your severance and go according to retail dive.
Speaker A:The move is not a company wide mandate as Target allows individual teams to determine their own in person requirements.
Speaker A:But this is being described as the company's largest return to office mandate in recent months.
Speaker A:In a statement, a company spokesperson said, quote, as we enter a new chapter for Target, increased in person collaboration across a core part of our merchandising team will help us reinforce our merchandising authority, unlocking greater creativity and enabling us to move faster to deliver on our strategy.
Speaker A:End quote.
Speaker A:Jen, is requiring remote employees to relocate or leave a smart turnaround move or is this a strategy that will cost Target more than it ultimately gains?
Speaker B:You know, I am honestly surprised as I was reading through this headline that they still had remote merchandising teams because most retailers have already called that back.
Speaker B:Right.
Speaker B: That was a thing of: Speaker B:So I definitely, I mean, to answer your question, I would say it's a smart move for the business.
Speaker B:I want to make note that we talked to many an executive that reaches out and it's hard on them and it's a relocate or resign decision is never easy.
Speaker B:No, but in this case, I mean we're talking about, we'll call it a turnaround, right?
Speaker B:Like we're talking about a turnaround.
Speaker B:They need to foster that creativity.
Speaker B:I am a big believer, as much as I believe in hybrid work and flexibility, I'm a big believer that if you've got, if you've got a lot of work to do, that organic collaboration, it does have to happen in person.
Speaker B:Like you just don't get as much of it if you need a teams meeting to correct something.
Speaker B:So I, I apologize to the people that are impacted that don't want to move to Minneapolis.
Speaker B:But if I'm looking at this from a business perspective, I do think it's important that they get those teams in person and figure out where they're headed next from a merchandising standpoint.
Speaker A:Yeah, that, that's really interesting.
Speaker A:I didn't thought about that point when you said what you said at the outset.
Speaker A:Like you're kind of surprised that they're doing this now.
Speaker A:Like why did they already do this?
Speaker A:Is kind of your opinion.
Speaker A:That's, that's really interesting.
Speaker A:Yeah.
Speaker A:And you know, my, my thoughts are.
Speaker A:And this probably is going to cost me even more friends at Target that I've probably already lost over the years, being, you know, candid and frank about how I think, you know, they're doing things over there.
Speaker A:And.
Speaker A:And I probably.
Speaker A:I think I even know a lot of some of the people, not a lot of them, but some of the people that this announcement potentially even pertains to.
Speaker A:But I've never shied away from my opinions, and I'm not about to start now.
Speaker A:So I agree with you, Jen.
Speaker A:I like this move.
Speaker A:I mean, at the end of the day, we're talking about 150 people, too.
Speaker A:And if Target thinks its merchandising can be better with those 150 people in the office, then it's their right, you know, and it's their.
Speaker A:It's their opinion to do it.
Speaker A:And it's an opinion that I happen to agree with.
Speaker A:So.
Speaker A:And I can guarantee.
Speaker A:The other thing I'd say, and I want this to land the right way, is I can guarantee you that none of those 150 people are mission critical to the success of Target, as much as any of us in our jobs are mission critical to anything that we think that we are, because the machine will just plug back in the holes over time.
Speaker A:I hate to say it, but it is true.
Speaker A:Now, my one caveat, and Jen, I'm curious what your take is on this.
Speaker A:My one caveat is the leadership, if it's going to do this, also has to eat what it cooks.
Speaker A:You can't have VPs, vice presidents, managing teams from their summer cabins and their vacation homes whenever they feel like it.
Speaker A:And if that's still happening, too, then I'm resolutely against this move because leadership starts from the top and they have to set the example here.
Speaker A:So.
Speaker A:And I don't know if we're still seeing that across the industry, but, Jen, I'll give you the last word.
Speaker B:Yeah, I think I definitely agree with you.
Speaker B:I think it starts at the top.
Speaker B:I think when we're looking to bring on executives, typically what we see at the VP level or above is they have an even stronger mandate to be located near the office because there are days where executive team needs to have.
Speaker B:They need to be present, especially again in a situation like this.
Speaker B:Right?
Speaker B:Like, they need to be present, they need to be supportive, they need to be in the room as these decisions are being made.
Speaker B:So I would agree with you there.
Speaker B:I think there is a way to relocate to Minneapolis and still offer flexibility.
Speaker B:There are still retailers that offer summer Fridays, where you work from home on Fridays or you know, three flex weeks a year where you can work from wherever.
Speaker B:Right.
Speaker B:So it's not that people couldn't travel to their summer homes as much as I do think the executive team needs to be on board to also be located in Minneapolis, and that's their home base.
Speaker B:And they're in the office more than they're not if they're making this choice.
Speaker B:So I would say I agree with you on that for sure.