Target digital sales grow as Americans stayed home

Target sees online growth due to COVID-19


Target shoppers turned more to same-day services to cut down on time in stores as Americans sheltered in place due to the coronavirus pandemic.

The Minneapolis-based retailer announced Wednesday that its Drive Up curbside pickup, in-store pickup and Shipt delivery grew by 278% in the January-March quarter. The company said comparable sales, which included online purchases, increased 10.8% for the three-month quarter, which ended May 2.

“Throughout the first quarter, our team and guests faced unprecedented challenges arising from the spread of COVID-19,” Target chairman and CEO Brian Cornell said in a news release. “In the face of those challenges, our team showed extraordinary resilience as guests relied on Target as a trusted resource for their families.”

Target’s upcoming designer collaboration: Target announces new Designer Dress Collection with LoveShackFancy, Cushnie coming in June

Digital sales boost: Walmart sales increase 10% as online buying grew 74% during coronavirus pandemic

Digital sales accelerated every month in the quarter and went from 33% in February to 282% in April, Target said, noting 80% of online orders were shipped from stores.

Shoppers made fewer but bigger shopping trips in stores during the period.

The company did report higher expenses due to COVID-19 including employee wages and benefits.

Target reported revenue of $19.62 billion, up 11.3% over the same period a year ago. Net income fell 64% to $284 million.

Target announced Monday that it was extending the $2 an hour temporary wage increase for employees through July 4, which is two months longer than originally announced. The company is also continuing to offer access to a paid leave program for workers most susceptible to the coronavirus through the end of June.

Target also extended the two initiatives in April and officials said at that time that the company was spending $300 million in temporary benefits, wages and bonuses for workers.

This story will be updated.

Follow USA TODAY reporter Kelly Tyko on Twitter: @KellyTyko

Read or Share this story:


Source link

Categorized as Business

By Bernice Caldwell

Bernice is one of the finest authors Industry News Today portal has until now. Bernice's linguistic and well-written technique is one of the plus points that have the readers glued to her articles. Bernice currently heads the Healthcare and Services domain as her knowledge on the medical topics is immense. She has just joined the Industry News Today portal 6 Months back but the love for writing can be very well seen. She may be short on experience but it has definitely not stopped her from presenting some of the finest articles. Bernice is currently a very well-known personality on the portal to have shown her skillful writing in such a limited time span.

Leave a comment

Your email address will not be published. Required fields are marked *