Target sees holiday sales growth
Jan 13, 2021
Target saw comparable sales in the combined November/December period, best known as holiday season, grow 17.2 percent, driven by a 4.3 percent increase in traffic and a 12.3 percent increase in average ticket. Store-originated comparable sales grew 4.2 percent, while comparable digital sales grew 102 percent.
In a statement, Brian Cornell, chairman and chief executive officer of Target, said, “The momentum in our business continued in the holiday season with notable market share gains across our entire product portfolio. We’re very pleased with our results, and the strength of our performance is a reflection of the tireless work of our team to support our guests through a safe, convenient and inspirational experience. Throughout the holidays, we delivered joy for holiday shoppers while focusing on safety — adjusting promotions to reduce crowding while delivering easy, contactless fulfillment options through Drive Up and Shipt.”
He added that, “We’ve seen continued strong sales trends in the new year, and as we turn to our 2021 plans, our team is focused on continuing to build on the guest engagement and significant market share we gained throughout 2020.”
Comparable digital sales growth was driven primarily by the Target’s same-day fulfillment services (Order Pick Up, Drive Up and Shipt), which together grew 193 percent. Of the services, Drive Up grew the fastest at more than 500 percent, while Target’s sales fulfilled by Shipt grew more than 300 percent. Between store-originated sales, same-day services and Target’s ship-from-store capability, approximately 95 percent of the company’s sales in the November/December period were fulfilled by its stores.
The company continued to gain market share throughout the November/December time period in all five of its core merchandising categories. Growth was the strongest in home, which saw a comparable sales increase in the low-20 percent range. Comparable sales in hardlines also grew in the low 20 percent range, reflecting mid-20 percent growth in electronics. In food & beverage, comparable sales growth was in line with the company average, while beauty & essentials saw growth in the low teens. Apparel delivered comparable sales growth in the high-single digit range.
photo: courtesy of Target Newsroom