Target Had a Happy Holiday Season
Target’s retail strategy was on target again this holiday season.
The retailer’s comparable sales in November/December period grew 17%, driven by a 4% increase in traffic and a 12% spike in average ticket. Store-originated comparable sales grew 4%, while comp digital sales grew 102%.
Target’s digital sales growth was driven primarily by same-day fulfillment services (Order Pick Up, Drive Up and Shipt), which together grew 193%. Of the services, Target’s curbside service, Drive Up, grew the fastest, spiking 500%. Target’s sales fulfilled by Shipt also climbed more than 300%
“The momentum in our business continued in the holiday season with notable market share gains across our entire product portfolio,” said CEO and chairman Brian Cornell. “We’re very pleased with our results, and the strength of our performance is a reflection of the tireless work of our team to support our guests through a safe, convenient and inspirational experience. Throughout the holidays, we delivered joy for holiday shoppers while focusing on safety—adjusting promotions to reduce crowding while delivering easy, contactless fulfillment options through Drive Up and Shipt.”
Between store-originated sales, same-day services and the company’s ship-from-store capability, approximately 95% of Target’s sales in the November/December period were fulfilled by its stores.
Unsurprisingly, growth was the strongest in the home category, which saw a comparable sales increase in the low-20% range. Comp sales in hardlines also grew in the low 20% range, reflecting mid-20% growth in electronics. In food & beverage, comparable sales growth was in line with the company average, while beauty & essentials saw growth in the low teens. Apparel delivered comparable sales growth in the high-single digit range.