- Target’s comparable sales jump 17.2% in the holiday season.
- Store pick-up services helped target sell 150 million items.
- Target Corp says sales in January have shown resilience so far.
Target Corp (NYSE: TGT) said on Wednesday that its comparable sales jumped 17.2% in the holiday season. The company attributed the increase to digital sales that it said posted an over 100% growth on the back of higher demand for electronics, home goods, and beauty products.
Target closed the regular session a little under 1% down on Wednesday. Including the price action, shares of the company are now exchanging hands at £144.36 per share versus a low of £66.75 per share in March 2020 when the COVID-19 crisis restricted people to their homes. The price action has been favourable for value investors in the past nine months.
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Store pick-up services helped target sell 150 million items
Target invested heavily in store pick-up services and same-day deliveries amidst the ongoing Coronavirus pandemic in 2020. The investment, as per the Minneapolis-based company, also contributed significantly to upbeat sales during the holiday season.
Store pick-up services, as per Target, helped it sell 150 million items over the holidays that represents a close to 300% annualised increase. The retailer also said in a blog post on Wednesday that much like last year, its network of roughly 1,900 stores in the United States will remain closed on Thanksgiving in 2021.
According to Managing Director Neil Saunders of GlobalData Retail:
“It is even less likely retailers will return to the big sales bonanza of Thanksgiving and Black Friday even when the pandemic is over.”
In separate news from the United States, retailer Urban Outfitters said on Tuesday that its sales saw an 8.4% decline in the two months that concluded on 31st December as compared to the same period last year.
Target says sales in January have shown resilience so far
Target also expressed confidence on Wednesday that sales have shown resilience in January to date as well. On Average, experts forecast the American retail corporation to print a 12.7% year over year growth in comparable sales in the fiscal fourth quarter.
In the prior quarter (Q3), Target had posted a nearly 20% growth in its comparable sales. Gorden Haskett analysts, however, are not too optimistic that the retailer will be able to match this figure in the fourth quarter.
Target performed largely upbeat in the stock market last year with an annual gain of nearly 40%. At the time of writing, the U.S. retailer has a market cap of £72.26 billion and a price to earnings ratio of 26.08.