Target said comparative sales on Wednesday rose 17.2% in November and December, as customers bought matching pajamas and gingerbread homewear to celebrate a relaxing holiday at home during the pandemic.
While online sales remained strong, shoppers also visited Target’s stores and spent more money per purchase than they did last holiday season. The company said combined transactions at Target stores and on its website rose 4.3% and average tickets grew 12.3% year-over-year.
Despite the strong results during the peak shopping season, Target’s sales growth slowed slightly compared to the gains it made in the third quarter of the fiscal year. The slowdown underscores the challenge Target faces in the coming quarters. As more Americans get vaccinated, the company will have to demonstrate that it can hold onto gains in market share, even as consumers feel more comfortable taking numerous trips to smaller stores or back to malls.
The pandemic may permanently change the rhythm of the holiday shopping season, too. Target said its stores will be closed on Thanksgiving Day 2021.
The retailer chose to stay closed last Thanksgiving due to the health crisis. To spread sales and small crowds, Target launched sales weeks before Thanksgiving, which was previously the starting line for looking for gifts and stocking stuffing. It is also placing more of its deals online.
Target said digital analog sales more than doubled in November and December compared to the same period last year, while comparable store sales grew 4.2%.
Target’s guidance only includes sales in November and December although the fiscal fourth quarter won’t end until January 31. It will report its full-quarter results on March 2 on the Virtual Investor Day. Ahead of Wednesday’s news, analysts surveyed by the Refinitiv poll estimated that Target would earn $ 2.27 per share, following the adjustments, on revenue of $ 26.67 billion.
Target has been one of the bright spots in the hard-hit retail industry. It reported amazing sales growth and $ 6 billion in market share gains as many other retailers took a hit due to temporary store closings and even Filed for bankruptcy During the pandemic. Since consumers had limited trips to stores, they spent more of their dollars in a few places, and these tended to be big retailers where they could get gallons of milk, cleaning supplies, and gymnastics pants, all at one stop or all at One place website.
As in the months prior to the pandemic, target shoppers have continued to use the company’s fast, contact-free options. Same-day pier pickup service, Drive Up, has grown over 500%. Shipt’s sales target grew by more than 300% over the holidays.
Few retailers reported their holiday sales so far, but Target has outpaced the growth of e-commerce in the industry. According to Adobe Analytics, Online purchases in the US during the 2020 holiday increased 32.2% As of 2019, as more shoppers are shopping from their homes during the pandemic.
Target also made strategic moves that paid off. She owns Shipt, which is a same day home delivery service. that Fresh and frozen groceries were recently added to sidewalk pickupsSame-day service grew by over 500% over the holidays. And her The collection expanded its own food and beverage brand, Good & Gather, with a premium range of gourmet pasta sauces and coffee as people cook more at home.
Household goods and die-hard lines, which include gear and sporting equipment, were especially popular during the holidays. Both categories saw gains in same-store sales in the low -20% range compared to the previous year. Within the die-hard lines, the growth was driven by electronics sales.
Target said comparative sales of food and beverages were up about 17%. Beauty and necessities saw growth in low teens and apparel saw high number one gains.
And Target said family pajamas sets and Christmas tree decorations were among her best sellers. The retailer has also sold nearly 2 million gingerbread Wondershop homes.
Target stocks, which have a market capitalization of nearly $ 100 billion, have gained nearly 60% over the past year. The stock closed on Tuesday at $ 199.10, not far from its 52-week high of $ 199.50, which it set on Monday.
