Target and Wal-Mart and pretty much every other retailer out there do what they can to suck the life out of their employees and any benefits as a means to cut costs. As employees feel and notice this happening, the "Why do I work so hard?" mentality sets in. You can work as hard as you can as much as you want, but eventually you start cutting corners or not caring as much.
Because Target, Wal-Mart, etc. have been doing this for so long, it's probably damn near impossible to re-introduce awesome benefits because the "Why do I work so hard?" mentality has set in. (I'm not endorsing or approving retailers of doing this, btw). After getting brow-beaten for so long with low wages and pitiful benefits, do you think all the employees would suddenly get a spring in their step if their wages and benefits increased significantly? For some, maybe. But for the vast majority, myself included, the behavioral pattern has been set, and we'd probably end up justifying it by thinking "We've been sh*t on for so long, we deserve this and to work easy for a while".