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Target Holiday Sale 2020 surges 17%, online sales double

Shoppers wearing face masks due to a coronavirus disease (COVID-19) pandemic will browse toys at the Target Store in King of Prasha, USA on November 20, 2020.

Mark Makera | Reuters

According to Target, comparable sales on Wednesday increased 17.2% in November and December as customers purchased matching pajamas and gingerbread house kits to celebrate a cozy holiday at home during a pandemic. ..

Online sales continued to be strong, but shoppers also visited Target stores, costing more per purchase than last year’s holiday season. The company said total transactions on the target store and its website increased by 4.3% and average tickets increased by 12.3% year-on-year.

Despite good performance during the peak shopping season, Target’s pace of sales growth slowed slightly compared to profits recorded in the third quarter. The slowdown highlights the challenges that targets will face in the coming quarters. As more Americans get vaccinated, the company continues to grow its market share, even if consumers feel more comfortable going to smaller stores and returning to the mall. You need to prove that you can.

Pandemics can also permanently change the rhythm of the holiday shopping season. Target said the store will close on Thanksgiving in 2021.

Retailers have chosen to keep the last Thanksgiving closed due to the health crisis. Target launched sales a few weeks before Thanksgiving to boost sales and crowds. Thanksgiving was previously the starting point for searching for gifts and socks. We also publish more deals online.

According to Target, same-store sales in November and December more than doubled year-over-year, with same-store sales up 4.2%.

Target guidance does not end the fourth quarter until January 31st, but only includes sales in November and December. We will report the quarterly results on March 2nd on Virtual Investor Day. Prior to Wednesday’s news, analysts surveyed by Refinitiv estimated that adjusted earnings of $ 26.67 billion and $ 2.27 per share.

Target is one of the illustrious spots in the retail industry that has been hit. Many other retailers have been overwhelmed by temporary store closures and filed for bankruptcy during a pandemic, reporting spectacular sales growth and $ 6 billion in market share. Consumers are spending more money in several places due to limited travel to stores, and can buy a gallon of milk, cleaning supplies, and sweatpants all in one place or all in one place. It tends to be a large retail store. website.

As in the early months of the pandemic, Target shoppers continued to use the company’s quick, unreachable online options. Drive-up, a curbside pickup service on the same day, grew by more than 500%. Shipt’s target sales increased by more than 300% during the holidays.

So far, few retailers have reported holiday sales, but Target has far outpaced the industry’s e-commerce growth. According to Adobe Analytics, online purchases in the United States during the 2020 vacation increased by 32.2% from 2019 as more shoppers shop from home during the pandemic.

Target has also made successful strategic moves. I own Shipt, a home delivery service on the same day. We recently added fresh and frozen groceries to our curbside pickups. This is a same-day service that has increased by more than 500% on holidays. We have also expanded our selection of Good & Gather, a private label for food and beverages, and added a premium line of gourmet pasta sauces and coffee as people cook at home.

Household appliances and hardlines, including appliances and sporting goods, were especially popular during the holidays. In both categories, same-store sales increased by 20% compared to the previous year. Growth was driven by the sale of electronic devices on a hard line.

According to Target, equivalent food and beverage sales increased by about 17%. Cosmetology and necessities grew in the early teens, and apparel showed single-digit high growth.

Target said family nightwear sets and Christmas tree ornaments are one of the bestsellers. The retailer also sold nearly 2 million wonder shops, Gingerbread House.

Target stocks with a market value of nearly $ 100 billion have increased by nearly 60% over the past year. Shares closed on Tuesday at $ 199.10, not far from the 52-week high of $ 199.50 set on Monday.

Target Holiday Sale 2020 surges 17%, online sales double

Source link Target Holiday Sale 2020 surges 17%, online sales double

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