Free Trial

Target continues to thrive in whirlwind retail environment

In this Friday, March 20, 2020 file photo, a shopper leaves the Target Store on 34th St. with supplies as carpenter board up the Sephora story in New York. Target Corp. said Friday it will give a $2 an hour wage increase to its 300,000-plus workers who have been scrambling to help customers. The pay bump will be effective at least through May 2. (AP Photo/Mary Altaffer, File)

NEW YORK (AP) — Target's strong sales streak extended through a pandemic-shrouded holiday season after a hard push online and an increased effort to provide alternatives to customers who are trying to minimize risk.

The retailer reported Wednesday that online sales surged 102% between November and December. Sales at its stores opened for a least a year rose 4.2%. Customer traffic rose 4.3%, and the average amount of sales per customer rose 12.3% as they consolidated trips to different stores during the pandemic.

And changes made during the pandemic once unthinkable have worked so well that they may become the new norm.

For example, Target closed all of its stores on Thanksgiving, traditionally the starting gun for the holiday season, rolling out discounts and specials early and over a broader period to control traffic in stores.

It said Wednesday that it will close its stores again on Thanksgiving this year, and some industry watchers believe Target may not be alone.

“Despite disruptions to the traditional pattern of holiday trade, retailers were able to thrive if they put their best foot forward and stimulated consumers to buy across the whole season,” said Neil Saunders, managing director of GlobalData Retail. “In our view, this means that it is even less likely retailers will return to the big sales bonanza of Thanksgiving and Black Friday even when the pandemic is over. Target’s decision not to open on Thanksgiving of 2021 underlines this point.”

Target gained market share in all five its core merchandise areas. Sales were strongest in its home and furniture departments, even as it was forced to devise new strategies during a period when store aisles are typically teaming with customers.

It aggressively discounted prices starting in early in October to get an early start on an unprecedented shopping season, offsetting the Thanksgiving closure of stores. Black Friday doorbuster deals went online as retailers tried to keep customers engaged while mobility was restricted by the pandemic.

Customers have responded in force to efforts by Target to help them reduce exposure to the virus through same-day store pick up for orders, and also delivery. Same-day services increased 193% during the November and December period, the company said.

Even with the push online, Target's 1,900 locations have become an even greater strength as infections surged and people tried to stay home. Drive-up service for shoppers grew the fastest during the holiday season, the company said, and about 95% all sales were fulfilled by Target stores during the two-month period.

The Minneapolis company will report full fourth-quarter financial results next month.

A fuller view of the holiday season's sales will come on Friday when the U.S. government releases its December retail sales figure.

The picture has been mixed so far. Seattle-based Nordstrom Inc. reported late Wednesday that its net sales dropped 22% in the nine-week holiday period ended Jan. 2, compared with the nine weeks ended Jan. 4, 2020. Online sales increased 23% during the holidays and represented 54% of total sales.

Lululemon Athletica Inc., benefiting from an increased appetite for active wear during the pandemic, raised its profit and revenue outlook for the fiscal fourth quarter on Monday after a strong holiday season. Tiffany & Co. last week reported a 2% gain in preliminary holiday sales, helped by strong sales in China and online. But business fell in the Americas.

_________

Follow Anne D’Innocenzio: http://twitter.com/ADInnocenzio

Should You Invest $1,000 in Tiffany & Co. Right Now?

Before you consider Tiffany & Co., you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Tiffany & Co. wasn't on the list.

While Tiffany & Co. currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

10 "Recession Proof" Stocks That Will Thrive in Any Market Cover

Which stocks are likely to thrive in today's challenging market? Enter your email address and we'll send you MarketBeat's list of ten stocks that will drive in any economic environment.

Get This Free Report
Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRankâ„¢Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Target (TGT)
4.834 of 5 stars
$104.17-1.2%4.30%11.45Hold$116.70
lululemon athletica (LULU)
4.7828 of 5 stars
$247.710.6%N/A16.78Moderate Buy$338.73
Nordstrom (JWN)
1.3098 of 5 stars
$24.680.1%3.08%15.72Reduce$22.80
Tiffany & Co. (TIF)N/A$131.46flat1.76%64.44N/AN/A
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

Recent Videos

3 Cheap Growth Stocks Set to Explode This Summer
The Next NVIDIA? Quantum Computing Stocks Set for Explosive Growth
5 Stocks to BUY NOW in July 2025

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines