Taking the world by storm by breaking the news earlier this October, Target released its stats. Showed comparable sales at 24% almost doubled than the last year.
“It is the strongest we have ever reported.” Said Target’s CEO and chairman, Brian Cornell.
Target has always proved its worth to people, showing them that it would never back up from the competition and it will always strive for the best. This year, even with the presence of a pandemic and with the entire lockdown situation going on, Target sales did not show any decline.
The quarter ended on August 1, the sales came in $22.7 billion, up to $24 billion to $18 billion from 2019. Total Target revenue and income rose 24.7% to $22.8 billion.
Whereas the overall comp sales jumped 24.3% showing more gains of 10% for Target stores and 195% for Target’s digital channels. Since the pandemic caused people to change the way they used to shop, the online sites were crowded with people.
Target’s online business showed a massive increase of 13.5% growth in comparable sales whereas its stores fulfilled over 90% of sales during the quarter. It is acknowledgeable that even in this time where everyone has opted for digital and online shopping, Target’s only in-store comparable sales have shown an increase and has resulted in one of the best in Target’s history.
All the Target’s customer safety programs that it released this year, “same-day services”, “order Pickup”, “Ship” and “Drive-Up” also showed an increase with 273% comparable sales growth in the second quarter and accounted for 6% of overall comparable sales of Target. According to Target’s CEO, they have accounted for the fastest 734% growth rate on Drive-up service alone, Target sales fulfilled by Shipt were also increased by 374%. And in-store sales increased by 64%.
If we look at the comparable sides, Target has shown an incline of 4.6% in traffic and 18.8% in the basket size in the second quarter. Target announced that through the fiscal 2020 first half, Target has gained more than 10 million new digital and online customers while gaining $5 billion in market shares which is still now the highest market share price of Target.
Target’s good and gather private brand hasn’t stayed back as well. Showing a huge increase rate of a billion in less than just a year. For earnings in the 2nd quarter, Target showed a $1.69 billion increase in income.
Target closed its 2nd quarter with 1,871 stores overall, compared with 1,853 a year earlier (showing an increase of almost 30 stores.) Of its brick-and-mortar base, 1,505 stores are 50,000 to 169,999 square feet, 272 locations are 170,000 square feet, and 94 stores are 49,999 square feet.
They have also restarted the openings of their new stores that they stopped because of the corona, for safety issues as well. Target’s second-quarter showed EPS at $1.62, with ranges from $1.13 to $2.04. Target has shown improvement in almost every area this year despite all the chaos happening in the world.