Target is taking a significant step to enhance its in-store customer experience by grading employees on their friendliness towards shoppers. The retailer will incorporate customer engagement into its employee performance assessments, as reported by Bloomberg on Wednesday. This initiative is part of Target's broader $6 billion push to revitalize sales under the leadership of new CEO Michael Fiddelke, who assumed the role in February.
New Customer Engagement Metric
The customer engagement metric is one of several changes Target is implementing to elevate the guest experience. While the company has not provided a specific timeline for the rollout, sources close to the matter indicate that the assessment will be applied broadly across its more than 2,000 U.S. stores. This move aligns with Fiddelke's stated priority of making every store visit and digital interaction easier, more inspiring, and more welcoming.
Previous Customer Service Initiatives
In November, Target introduced its "10-4" policy for employee-customer interactions. Under this policy, when a guest is within ten feet of a team member, the staffer should wave, greet, or make eye contact. When the guest is within four feet, the employee should ask about their day or offer assistance. Target has also been improving its online experience, launching a ChatGPT integration in its app that allows customers to purchase multiple items in a single transaction, shop for fresh food, and select shipping options, along with personalized recommendations.
Positive Sales Impact
Target's renewed focus on customer experience appears to be yielding results. After four consecutive quarters of declining same-store sales, the company reported a 5.6 percent increase in the first three months of 2026—the largest jump since early 2022. The Independent has contacted Target for clarification on whether customer engagement scores will be tied to employee bonuses or pay increases.
Industry Context
Target is not alone in prioritizing customer service. Home Depot launched AI-powered phone agents in April, claiming the service can understand a customer's reason for calling within 10 seconds. According to a Deloitte analysis, 52 percent of retail companies are prioritizing customer focus in 2026, making it the second most popular priority after growth and market expansion. While price remains important for cost-conscious consumers, the in-store and online experience heavily influences shopping decisions. Deloitte notes that up to 40 percent of consumer perceptions of a brand's value stem from factors other than price, including quality, customer service, ease of checkout, loyalty programs, and employee attitudes.
