Target delivered better-than-expected performance in its second quarter 2017, providing the retailer a strong position as it enters the back half of the year.
Target’s digital sales skyrocketed to 32%, on top of 16% growth last year. The compounding of these two growth rates represents more than a 50% growth rate compared with two years ago. The company also said its guest contacts per digital order are running 30% lower than last year. Target attributed the meaningful declines in guest contact center activity to efforts to reduce friction and increase the reliability of digital operations.
"This is a tangible reflection of our work to create a stable digital platform and successful collaboration between our digital operations and merchandising teams to create a more cohesive experience for our guests," said CEO Brian Cornell.
The retailer also saw store traffic increase more than 2%, which was much stronger than Target's expectations. The strength was broad-based across the country, across categories and across channels.