Consumer Behavior

Target earnings reveal sales spike as shoppers are buying more each trip

Photo by istock.com

May 21, 2020

The COVID-19 pandemic brought challenges for Target but the retailer's first quarter earnings reflect it also brought spikes in sales.

Total comparable sales grew 10.8%, and digital sales grew 141%, with total revenue hitting $196 billion — a spike of 11.3% compared to last year, according to a press release.

Operating income was $468 million, down 58.7 percent from $1,135 million in 2019.

The retailer said while shoppers made fewer trips during the onset of the coronavirus pandemic in March and April they tended to buy more on each trip.

Digital comparable sales accelerated every month in the quarter, from 33% in February to 282% in April. Same-day services, such as order pick up/drive up, grew 278% during the first quarter.

"Throughout the first quarter, our team and guests faced unprecedented challenges arising from the spread of COVID-19. In the face of those challenges, our team showed extraordinary resilience as guests relied on Target as a trusted resource for their families. With our stores at the center of our strategy, and a significant investment in the safety of our team and guests, our operations had the agility and flexibility needed to meet the changing needs of our business," said Brian Cornell, chairman and CEO, in the release.