Target provides extensive training to support California store blitz

Target Provides Extensive Training To Support California Store Blitz

As Target Stores continues its conversion of Gemco units in the Northern and Central California markets this fall, the Minneapolis-based chain is counting on a sophisticated and formalized training program to facilitate the most ambitious store opening blitz in the discount industry.

New company employees are being carefully schooled and immersed in the upscale discounter's retail philosophy.

In fact, company vice president of public and consumer affairs George Hite termed the training process, "a cultural dip' into Minneapolis-based Target's way of life.

Although well established in Southern California, the opening of 12 stores in the San Francisco Bay Area in early November and 11 stores in California's Central Valley this month represents Target's first move into the regions further north. And with this entrance has come the need for over 4,300 new Target employees.

After the hiring and training of each store's nine top store management positions was completed, Target set up training centers for key hourly employees during August in the Central Valley and during September in the Bay Area.

For one month of intensive instruction at the centers, each new Target inductee not only learned his specific job-- such as cashier supervisor, merchandise, clerical or receiving supervisor--but was also cross-trained in other areas as well.

With the use of videos, computers, classroom sessions and numerous company manuals, these 30 to 35 (per store) hourly employees were carefully groomed.

"Target's success in large measure is that we have a way of doing things,' explained Hite. "They not only need to know how we do things but also why,' he added.

So merchandise clerical leaders were taught proper Target record keeping for merchandise data entry, while receiving supervisors were instructed on the necessity to keep each store's 750,000 sku's flowing properly.

"The name of the game is to keep the merchandise moving,' Hite said.

He also noted the importance of carefully tracking merchandise since each existing 100,000-square-foot store generates an average of $18.8 million in sales a year.

In addition to learning how and why Target conducts its business, these key hourly workers also learned "just what Target is all about.' Hite said many of the employees were introduced to Target for the first time at the new training centers.

To enhance the learning process, weekly ad circulars decorated the walls in the temporary training centers and hand-made signs trumpeted company spirit.

Once the month of schooling was completed, the key hourly workers joined the nine-member store management team and the newly hired general hourly workers in the stores.

Training of the general hourly employees was then conducted at the stores--typically in a learn-by-doing method --during the final month before each store opened.

Hite said Target was able to attract the 200 to 225 employees required per store because of the company's successful 25-year track record. Target's fast growth rate and the opportunity for employees to move up provided additional incentives.

The Target locations were turned over from the construction staff to the store personnel in early September in the Central Valley and early this month in the Bay Area. Each store crew then began creating the formal Target according to precise instructions and planograms.

Once the planogram directions were placed on the appropriate shelves and racks, the merchandise began to roll in daily. After receiving, the stock progressed through one central counting and ticketing station within the store, explained one of Target's new store managers in Sacramento, Steve Henkens.

From this point, the store personnel worked to complete the stocking of the start-up merchandise while continually processing price updates.

Although Target's entrance into Northern California was enhanced by the acquisition of many of Dublin, Calif.-based Lucky's Gemco discount store sites, Hite said the company was already planning a move into this particular area prior to that acquisition late last year.

However, he said prior to acquiring the former Gemcos, Target was faced with a site selection challenge, since "good real estate locations are hard to find.'

In total, the company will open 71 stores this year--54 in California--bringing Target's California count to 91 and the nationwide total to 317.

Photo: New employees (left) take a "cultural dip' into Target's way of life: The upscale discounter conducted extensive training to facilitate its push into the Northern/Central California markets. At right, employee stocks shelves at a former California Gemco--soon to be reopened as a Target.

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