Target has launched a performance evaluation system that grades store employees on how friendly they are to customers, measuring everything from smiles to greeting consistency as the retail chain battles declining sales under CEO Michael Fiddelke.

Grading Smiles and Eye Contact

The Minneapolis-based retailer is rolling out assessments that evaluate workers on customer interaction, reliability, teamwork and execution. Managers will use the scoring system to track how consistently employees smile, engage with shoppers and offer assistance while customers browse aisles. The company has already trained more than 300,000 workers through a new guest experience program designed to make stores feel friendlier and more engaging for shoppers.

The evaluation system builds on Target’s controversial customer service rule introduced last year. Under that policy, workers must smile, greet or make eye contact with customers within 10 feet, and offer direct assistance when shoppers come within four feet. The retailer is also requiring all employees to wear red tops with blue jeans or khakis in stores nationwide.

Sales Slump Drives Changes

Fiddelke took over as CEO in 2024 after serving as chief operating officer and finance chief. He has made improving customer experience central to his turnaround strategy, alongside investments in store remodels, merchandising and technology upgrades. During a recent earnings call, Fiddelke stated that great guest experiences start with warm, friendly and helpful store teams. The retailer says employee assessments remain in pilot phase but will expand across the chain.

Retail Industry Trend

The push reflects broader competition across retail as companies fight for shoppers who are increasingly selective about spending amid inflation and economic uncertainty. Walmart uses customer satisfaction surveys and mystery shopper programs to monitor employee interactions. Costco measures checkout speed and member service metrics closely. Luxury retailers like Nordstrom have long tied employee evaluations to customer experience and sales performance. Target’s approach quantifies friendliness in ways that raise questions about workplace monitoring and employee autonomy in an industry already known for high turnover and demanding conditions.