In this file:
· Target, Still On A Tear, Sees 'Unprecedented' Growth
· Target’s Q3 comparable sales leap almost 21%
Target, Still On A Tear, Sees 'Unprecedented' Growth
by Sarah Mahoney, MarketindDaily
Nov 18, 2020
Americans aren't tiring of their months' long Target run. The Minneapolis-based retailer says its comparable sales jumped nearly 21% in the third quarter, with broad gains in each of its key merchandise categories.
Chairman and CEO Brian Cornell cited "unprecedented market share gains," valued at some $6 billion, in the company's announcement of the results.
Sales gained both in stores, with comparable-store sales climbing 9.9%, and digitally, up 155%.
Total revenue rose 21.3%, to $22.6 billion. And operating income hit $1.9 billion in the third quarter, a 93.1% bounce from $1 billion in 2019.
Cornell says the company is gearing up for a holiday period designed to avoid store crowding, so its customers can keep spending without worrying about getting sick.
"In preparation for the holiday season, we focused first on the safety of our guests and our team, making changes to eliminate crowds while enhancing our fast-growing, contactless options like in-store pickup, Drive Up and Shipt," he says in the announcement. "In a holiday season that will feel different for our guests, we're committed to helping them navigate the season safely, as they find new ways to celebrate."
Still, some observers detected a slight slowdown in growth since the last quarter -- a small slump that also appeared in sales at Walmart’s earnings this week...
Target’s Q3 comparable sales leap almost 21%
Digital sales up 155% as retailer posts record-high adjusted EPS
Russell Redman, Supermarket News
Nov 18, 2020
Fueled by booming e-commerce business, Target Corp. topped 20% sales growth in its fiscal 2020 third quarter, with Chairman and CEO Brian Cornell citing record-high adjusted earnings per share that more than doubled versus a year ago.
Minneapolis-based Target said Wednesday that, for the quarter ended Oct. 31, net sales rose 21.3% to $22.34 billion from $18.41 billion a year earlier. Total revenue also was up 21.3%, reaching $22.63 billion.
Overall comparable sales jumped 20.7% year over year, reflecting gains of 9.9% in same-store sales and 155% in digital sales. Traffic increased 4.5% on a comparable basis, while the average ticket grew 15.6%.
“Since the pandemic began in March, we have experienced a meaningful acceleration in basket growth, both in stores and online, as guests have consolidated their shopping into much larger trips,” Cornell (left) told analysts in a conference call on Wednesday. “Across channels, our store comps grew nearly 10%, while our digital comp sales grew 155%, contributing nearly 11 percentage points to the company comp.”
Sales via same-day services Order Pick Up (in-store pickup), Drive Up (curbside pickup) and Shipt (home delivery) climbed by a combined 217% in the quarter, Target reported.
“Within digital, we continue to see the strongest growth in our same-day services: [Order] Pick Up, Drive Up and Shipt, which together grew more than 200% in the quarter,” said Cornell. “These services are fast, convenient, reliable and contactless, which explains why they continue to generate very high levels of guest satisfaction.”
According to Chief Operating Officer John Mulligan, same-day services added more than $1 billion of incremental sales in the third quarter...