Target is making moves to take its corporate workforce remote after a banner year in sales.
The company will cease operations at the City Center building in downtown Minneapolis and will find alternative office accommodations for its 3,500 workers, the New York Times reported. More than 25 percent of the big-box retailer’s Minneapolis-area corporate employees work in the building.
Company officials said that in the long-term, Target will move toward a “hybrid model of remote and on-site work, allowing for flexibility and collaboration and ultimately, requiring less space.”
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While many retailers have struggled to pay rent amid the lockdowns, Target has flourished. Its 2020 sales growth exceeded $15 billion, greater than in the prior 11 years combined. It’s on track to open 30 to 40 new stores this year, and has plans to renovate an additional 150 locations.
Target’s remote working announcement adds to a growing chorus of companies in various industries that are reconsidering their approach to office space.
The San Francisco-based tech company Salesforce, which acquired the messaging app Slack in December, announced soon after it would scale back its real estate footprint. In February, the company announced its employees would be able to work remotely forever. That’s after companies like Dropbox, Twitter and Facebook announced similar plans last year.
[NYT] — Georgia Kromrei