MESSAGE
| DATE | 2020-11-18 |
| FROM | Ruben Safir
|
| SUBJECT | Subject: [Hangout - NYLXS] retail craziness and target
|
wsj.com
Target Grabs Sales From Rivals Amid Pandemic
Sarah Nassauer
5-6 minutes
Target Corp. TGT +4.01% said sales rose steadily in its most recent
quarter, as demand for household goods and home office supplies
continued to grow during the pandemic, while shopping shifted online.
Comparable sales, those from stores or digital channels operating for at
least 12 months, increased 20.7% in the quarter ended Oct. 31, as more
shoppers came to stores and spent more during each visit and as online
sales soared. Digital comparable sales grew more than twofold during the
quarter, the company said.
Target’s comparable sales rose 24.3% in the quarter ended Aug. 1, a high
for the retailer.
After an uncertain start to the school year, back-to-school sales picked
up in late August and September, CEO Brian Cornell said Wednesday on a
call with reporters.
Even after the spending impact of spring stimulus checks and
pandemic-related supplemental unemployment benefits petered out, Target
continued to log about 20% sales growth in September and October, Mr.
Cornell said.
“We haven’t seen that dissipation,” he said.
Target and other retailers started to push holiday deals earlier this
year, in October, to reduce store crowding and moderate pressure on the
e-commerce supply chain. “The guest seems to be responding well to the
changes we made in our holiday cadence,” Mr. Cornell said.
The End of the Mad Rush: How 2020 Is Reshaping Black Friday
0:00 / 6:27
4:03
The End of the Mad Rush: How 2020 Is Reshaping Black Friday
The End of the Mad Rush: How 2020 Is Reshaping Black Friday
For years, one of the biggest days of the holiday shopping season was
Black Friday. But in 2020, that could change. The coronavirus pandemic
is fast-tracking big changes in retail that were already underway,
pushing consumers into a digital future. Illustration: Jacob Reynolds/WSJ
Big-box stores such as Target, Walmart Inc., Home Depot Inc. and Lowe’s
Cos. have generally fared well during the pandemic, enticing shoppers
with a one-stop place to shop, especially for in-demand product
categories such as food and home-improvement supplies. In contrast, many
department stores and apparel retailers—already weakened by the shift to
online shopping in recent years—have struggled after having to close
early in the pandemic.
Target is picking up sales from some of those competitors. The retailer
said it is gaining market share across all five of its main product
categories, including electronics, home goods and apparel. Sales of
electronics rose more than 50% in the latest quarter, while food and
beverage sales grew under 20% and apparel by less than 10%, Mr. Cornell
said.
Many investors are looking ahead to next year, trying to determine how a
potential coronavirus vaccine could impact demand for food and home
goods or shift the retail landscape. Executives at several retailers
that reported earnings this week have said they don’t know what to
expect, but want to be ready to respond.
“We’re going to go into the first half of 2021 facing the continued
pandemic, waiting for vaccines, looking for greater clarity around the
condition of the economy and unemployment,” said Mr. Cornell on the
call. “I think we’re going to just have to make sure that we remain
flexible and provide the assortment and the services and the safety that
the guest is looking for.”
On Tuesday, Walmart said comparable sales rose 6.4% in its most recent
quarter, a slower pace than earlier in the pandemic. The Commerce
Department reported Tuesday that October retail sales grew 0.3% from the
prior month, the slowest monthly growth since May.
In recent years, Target has invested heavily to use stores as
fulfillment centers for online orders, efforts that are paying off
during the pandemic, said Mr. Cornell. Demand for same-day online pickup
and delivery services grew more than threefold in the quarter, the
company said.
Revenue in the third quarter hit $22.6 billion, up from $18.7 billion a
year earlier, while earnings per share grew to $2.79 from $1.36.
--
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