Vacation 2020 Goal’s same-store gross sales soar 17%, on-line gross sales double

Like-for-like sales rose 17.2% on Wednesday in November and December, according to Target, as customers bought matching pajamas and gingerbread house kits to celebrate a cozy vacation at home during the pandemic.

While online sales remained robust, shoppers also visited Target’s stores, spending more money per purchase than they did last Christmas. The combined transactions in the Target stores and on their website increased 4.3% and the average tickets increased 12.3% year over year.

Target stocks with a market value of around $ 100 billion recently traded around 1% on Wednesday morning. Before that, stocks were higher, hitting an all-time high of $ 199.96. The stock gained nearly 60% over the past year.

Stifel analyst Mark Astrachan said that Target’s strong Christmas sales beat consensus estimates, but the market’s reaction was subdued as investors already had higher expectations for the company’s performance.

The pace of Target revenue growth slowed slightly from its third quarter earnings, underscoring the challenge that Target faces in the quarters ahead. As more Americans are vaccinated, the company will need to demonstrate that it can hold on to market share gains it made during the pandemic, even as consumers feel more comfortable taking numerous trips to smaller stores or returning to malls.

In a research report, Astrakhan said he expects the retailer will be able to maintain its e-commerce profits as its services save customers time on the same day as roadside collection.

The pandemic can also permanently change the cadence of the holiday shopping season. Target said its stores will close on Thanksgiving Day 2021.

The retailer had chosen to remain closed on last Thanksgiving due to the health crisis. To distribute sales and thin crowds, Target began selling weeks before Thanksgiving, which had previously been the starting line for finding gifts and gift items. It also put more of its offers online.

According to Target, comparable digital sales more than doubled in November and December compared to the same period last year, while comparable store sales increased 4.2%.

Target’s guidance includes sales in November and December only, though fiscal fourth doesn’t end until January 31st. The results for the entire quarter will be published on March 2nd on a virtual investor day.

Prior to Wednesday’s news, analysts polled by Refinitiv estimated that after adjustments, Target would make $ 2.27 per share on revenue of $ 26.67 billion.

Target was one of the bright spots in a badly affected retail sector. The company saw staggering sales growth and $ 6 billion in market share gains as many other retailers were hit by temporary store closures and even filed for bankruptcy during the pandemic. With limited business travel, consumers have spent more money in a handful of places, and these have usually been large retailers where they can get a gallon of milk, detergent, and sweatpants at once or on their website.

As in the previous months of the pandemic, Target customers continued to use the company’s fast, contactless online options. The same-day roadside pick-up service Drive Up grew by more than 500%. The target sales achieved by Shipt increased by more than 300% during the holidays.

Few retailers have reported their Christmas sales to date, but Target has far outperformed the industry’s ecommerce growth. According to Adobe Analytics, online purchases in the US increased 32.2% over the 2020 vacation from 2019 as more shoppers shopped from home during the pandemic.

Target has also taken strategic moves that have paid off. It owns Shipt, a same day home delivery service. Fresh and frozen groceries have recently been added for roadside collection, a same day service that has grown by more than 500% over the holidays. And it has added a premium line of gourmet pasta sauces and coffees to its Good & Gather retail and beverage brand as people cook more at home.

Housewares and hardlines, which include equipment and sports equipment, were particularly popular during the holidays. In both categories, sales in the same store increased by 20% compared to the previous year. Within the hardlines, growth was driven by electronics sales.

The comparable sales of food and beverages rose by 17%, according to Target. Beauty and the essentials grew in the younger teens, and apparel saw high single-digit gains.

Target said family nightwear sets and Christmas tree decorations were among the best sellers. The retailer also sold nearly 2 million of its Wondershop gingerbread houses.

Comments are closed.