Target plans to eliminate about 500 positions across its distribution centres, regional offices and in certain store districts. The move is part of a broader plan to invest more in in-store staffing to improve the customer experience. The group aims to address complaints about messy aisles, out-of-stocks and long waits at checkout. According to an internal memo, about 100 cuts will affect districts, and nearly 400 will hit logistics and administrative roles.

The reorganisation includes reducing the number of districts to free up resources that will be redeployed into additional work hours for in-store teams. Target said the effort will translate into more labour, targeted additional hours and new training focused on the customer experience. The company said the changes will not affect in-store starting pay, set between $15 and $24 an hour depending on the region, though it did not quantify the overall investment.

The initiative is among the first major decisions by new chief executive Michael Fiddelke, who took up the role this month, as Target looks to return to growth after four years of flat revenue. The group is grappling with a perceived erosion of its historical strengths, including service quality and a differentiated product offering, as well as recent controversies and competition from Walmart. Target is due to detail its turnaround strategy in early March when it reports its holiday-quarter results and annual outlook.