Merchandising

Target sales zoom, hitting all-time high

Photo by istock.com

August 20, 2020

Target beat every analyst prediction regarding its latest quarterly earnings with its online business experiencing robust growth to the tune of 700%.

The online sales zoom was due to the retailer's curbside pickup service and the fact it drew 10 million new digital customers to its brand, according to a press release on the earnings.

Same-store sales jumped 10.9% and sales for online and stores open for a year saw a 24.3% spike in the quarter ending Aug. 1. The digital sales reflect nearly a triple jump compared to a year earlier.

Revenue was $23 billion while analyst expected $20.09 billion.

"Our second quarter comparable sales growth of 24.3 percent is the strongest we have ever reported, which is a true testament to the resilience of our team and the durability of our business model," CEO Brian Cornell said in the release.

Sales were up across all five merchandise categories, but electronics was the big winner as the business saw a 70% growth compared to a year earlier.

"We remain steadfast in our focus on investing in a safe and convenient shopping experience for our guests, and their trust has resulted in market share gains of $5 billion in the first six months of the year. With our differentiated merchandising assortment, a comprehensive set of convenient fulfillment options, a strong balance sheet, and our deeply dedicated team, we are well-equipped to navigate the ongoing challenges of the pandemic, and continue to grow profitably in the years ahead," said Cornell in the release.