Source: Target Corp.
The impact of the COVID-19 pandemic on retail continues to yield incredible results for the biggest players in the game.
Target reported its second-quarter earnings today with a total revenue of $23 billion, a 24.3% increase over the same period last year. Same-store comparable sales were up 10.9% while digital sales grew 195%. Same-day services (Order Pick Up, Drive Up, and Shipt) increased 273%. Continuing the omnichannel focus of its business, most of Target’s digital sales were fulfilled using the company’s stores as distribution hubs.
Like Walmart, Target is currently facing an unpredictable back-to-school season as it works its way into the third quarter. Seasonal resets are taking place at store level, and Target says that it will counter changing shopping patterns tied to at-home learning by extending the timeframe for the availability of back-to-school items in-store. Additionally, the company is putting increased emphasis on Halloween decor and costumes while pulling back on candy orders as families prepare to celebrate upcoming holidays at home. The company also says it’s spacing out holiday deals this year to manage foot traffic during the pandemic.
“As we look ahead to the fourth quarter, we’re focusing on guest and team member safety, developing plans to reduce crowds, and spread out demand throughout the season, says Target Chairman and CEO Brian Cornell. “Specifically, we’ll be spreading our best-price holiday offers over a longer timeframe beginning in October, so guests can shop safely and conveniently, without worrying about missing out on deals that usually come only late in the season. We’ve also announced that we’ll be closing stores on Thanksgiving, sending a clear signal to guests that they won’t need to stand in line in crowded stores to get a great deal.”
Target says that it’s gained more than $5 billion in market share since the beginning of the year.
