Known as the second-largest discount retailer in the United States, Target Corp. is planning to boost the company's healthy image by offering Fitbit Inc. trackers to its employees. The move came as a way to improve its workers' fitness amid rising healthcare expenses.
According to Target Human Resource Head Officer Jodee Kozlak, the deal, which is of the largest corporate accounts of Fitbit Inc., will allow its 335,000 U.S. employees to get Fitbit's most basic device, a clip-on tracker called Zip that retails for $59.95, for free. Employees can also buy a more expensive wristband with Target subsidizing the cost, Bloomberg Business reported.
Moreover, the Fitbit tracker will enable Target employees to monitor their activity data including steps taken in a day. By using the device, Fitbit Wellness Director Amy McDonough hopes that Fitbit can grow by tapping into employer's concerns about increasing healthcare costs.
"The cost of a Fitbit device and the associated services is very small compared to the savings from a healthier employee population," Chief Executive Officer James Park said.
The move is also part of Target's effort to improve its image as a wellness company. That's why, workers who opt in will be grouped into teams for a month-long competition, where the winning team will get to pick a charity to receive a $1 million donation. Furthermore, Fitbit will work with Target to design further programs around the devices.
Meanwhile, Target plans to start promoting more healthy foods and products to its customers next year. According to Fortune, the retail company will be adding more organic and natural food as it revamps its grocery aisles. They will also give employees a discount on healthy foods.
Luckily, Target shoppers who still want a junk-food fix can still enjoy the candy bars and chips because they are not going away, North Jersey noted. The chain is only trying to balance its revamping, so that its health promotion isn't too pushy and preachy, Target's Senior Vice President of Merchandising, Christina Hennington said.
