Target is piloting a new employee grading system that evaluates workers on customer interactions, including how consistently they greet shoppers, make eye contact, offer assistance, and project what the company describes as an engaged and positive demeanor. The initiative, announced by CEO Michael Fiddelke, is part of a broader strategy to reverse sluggish in-store sales and differentiate physical retail from online competitors.
The grading system builds on Target's existing "10-4" customer service rule, which encourages workers to acknowledge customers within 10 feet and offer assistance when shoppers come within four feet. The company has already trained more than 300,000 employees through a new guest experience program and says stores receiving additional staffing support have reported higher customer satisfaction scores in early pilots.
What the Right Is Saying
Conservative business commentators largely support Target's approach, arguing that customer service standards are reasonable expectations for employees in consumer-facing roles. They note that many successful companies—from Chick-fil-A to luxury retailers—have long used similar metrics as part of performance reviews.
Industry analysts contend that physical retailers need every advantage against e-commerce competition. Online platforms like Amazon can offer lower prices and convenience, but cannot replicate genuine human interaction. "Amazon can deliver paper towels," one retail consultant wrote in an industry publication. "Amazon cannot pretend to be excited that you're buying decorative pumpkins in July."
Business groups argue that such grading systems are legitimate management tools when implemented fairly. The National Retail Federation has stated that retailers have the right to set customer service standards and evaluate employees on their ability to meet them. They note that performance reviews tied to observable behaviors—like greeting customers promptly—are no different from metrics used across other service industries, including hospitality and food service.
Some conservative commentators also argue that workers who find such evaluations burdensome can seek employment elsewhere, viewing the market for labor as offering sufficient choice for employees with differing preferences about workplace culture.
What the Left Is Saying
Progressive labor advocates argue that grading employees on subjective metrics like friendliness could add unnecessary pressure to workers already facing challenging conditions. The Economic Policy Institute, a left-leaning research organization, has noted that retail workers frequently contend with understaffing, inconsistent schedules, and physically demanding shifts without additional compensation.
Worker advocacy groups contend that performance reviews tied to demeanor risk penalizing employees who may be dealing with personal difficulties or health issues. They also question whether metrics like "projecting cheerful energy" can be evaluated fairly across different worker demographics. Some unions representing retail workers have called for clearer guidelines on how such grading systems would account for disabilities, neurodivergence, or cultural differences in interpersonal communication styles.
Labor economists at the Center for American Progress argue that companies should address fundamental operational issues—such as adequate staffing levels and competitive wages—before expecting frontline workers to perform emotional labor at a higher level. "Smiles don't restock empty shelves," said one researcher affiliated with the organization who studies retail workforce conditions.
What the Numbers Show
Target's in-store sales have faced pressure as consumers shifted spending toward e-commerce during and after the pandemic. The company's 2025 annual report showed comparable store sales growth of 1.8%, significantly below pre-pandemic levels and trailing competitors in some categories. Customer satisfaction scores from third-party retail tracking services have shown modest declines over the past three years, particularly in measures related to employee helpfulness and checkout wait times.
The company employs approximately 350,000 workers in its U.S. stores, making it one of the largest private-sector employers in the retail sector. Target's current minimum wage averages $17 per hour nationally, above the federal minimum but below union-scale wages at some competing grocery chains. Employee turnover in the retail sector broadly runs between 50% and 65% annually, according to Bureau of Labor Statistics data, making consistent customer service training a significant operational challenge.
Retail analyst Neil Saunders noted that stores with additional staffing support under the pilot program reported customer satisfaction scores approximately 8% higher than control locations, though he cautioned that friendliness metrics alone cannot address underlying issues like inventory management or checkout efficiency. "Most customers don't walk out of Target furious because nobody smiled at them," Saunders wrote in a client note. "They walk out furious because they spent 20 minutes looking for an employee who could unlock a cabinet containing a $12 bottle of shampoo."
The Bottom Line
Target's experiment with friendliness-based grading reflects broader tensions in retail between customer experience expectations and worker treatment concerns. The company is betting that improved human interaction can differentiate physical stores from online competition, but the approach faces scrutiny over whether subjective performance metrics can be applied fairly.
The pilot program remains limited to select locations, and Target has not announced a timeline for potential wider rollout. Labor law experts note that such grading systems must comply with anti-discrimination requirements and should provide clear, measurable criteria to withstand legal challenge. Worker advocates are watching closely to see whether the company publishes transparency reports on how scores correlate with promotions, pay increases, or terminations.
What happens next will likely depend on whether early data shows measurable improvements in customer retention and sales without significant increases in worker complaints or turnover. Target's annual shareholder meeting is scheduled for June, where executives expect questions about the initiative's progress.