Target’s Senior Vice President, Hardlines Nik Nayer chatted with the Toy Book about the company’s impressive sales performance and more.
The Toy Book: Target reported a 20.7% sales increase in Q3 compared to the year prior, reflecting comparable stores sales growth of 9.9% and digital sales growth of 155%. How has Target kept up with demand for online orders?
Nik Nayer: We’re using our nearly 1,900 stores, just miles from 75% of the population, to fulfill online orders and give guests choices in how they get their online purchases. In fact, those stores — which also offer a safe and easy in-store experience — handled more than 95% of Target’s total third quarter sales. The fastest and most convenient way to shop online at Target is via our contactless same-day services — with Shipt delivery offered nationwide, and free Order Pickup and Drive Up at nearly every Target store. These services have orders ready the same day, and can be delivered or picked up whenever a guest chooses — no membership required.
Throughout 2020, our digital business has grown exponentially and millions of guests have turned to our same-day services: drive-up, order pickup, and delivery by Shipt, which collectively grew more than 200%. Our teams have managed high volume throughout the year and continued to make adjustments to provide a great guest experience. We’ve doubled the number of store team members picking and packing online orders and added more than 8,000 drive-up spots so that guests can get their orders quickly and reliably. Shipt also tripled its shopper network since the beginning of the year.
TB: How did Target’s partnership with FAO Schwarz perform during the holiday season? How will it continue into 2021?
NN: Target is known for our differentiated partnerships, and the FAO Schwarz collection brought the iconic toy brand and the joy of Target together for the season. The 70-piece collection of toys was available exclusively at all Target stores, on target.com, and at the famed FAO Schwarz store in New York City, and all at an incredible value. In fact, more than half of the assortment was under $20. The unique FAO Schwarz collection, paired with our safe and easy shopping experience, brought joy to all families this holiday season. As we look to 2021, we’ll continue to bring excitement and newness to our toys assortment, including iconic toy brands.
This State of the Industry Q&A response originally appeared in the February 2021 issue of the Toy Book. Click here to read more!