Retail

Target’s Digital Sales Spike Despite Sluggish Same-Store Growth

Target's Digital Sales Rise With Same-Day Pickup

As more shoppers are using same-day options such as curbside pickup when making eCommerce purchases, Target’s digital sales have increased 19 percent. The retailer noted that the use of its same-day services grew over 50 percent during November and December in comparison to 2018, powering approximately three-quarters of its overall digital sales growth over the holiday season, CNBC reported.

But the retailer reported disappointing results on Wednesday (Jan. 15). Its same-store sales over November and December were only 1.4 percent higher in comparison to the 5.7 percent growth seen a year before. Despite that news, the company says it is keeping a prior outlook for its Q4 earnings. The retailer also noted that the final three months of last year are poised to complete the 11th straight quarter of same-store sales increases.

Target noted that sales of home products had fallen by approximately 1 percent, while electronics sales were down over 6 percent in November and December. Beauty sales increased approximately 7 percent, food and beverage sales increased about 3 percent, and apparel sales were higher by roughly 5 percent over the holiday period.

In the retail industry overall, sales of appliances and electronics increased 4.6 percent from Nov. 1 to Dec 24, as furnishings and home furniture were 1.3 percent higher, per a separate Mastercard Spending Pulse analysis.

The news comes as holiday shoppers may have favored non-mall merchants. More consumers are believed to have turned to retailers outside of traditional malls, like Target and Walmart, while others bought items on Amazon.

Holiday sales at Macy’s fell, but not to the rate that analysts had predicted. The retailer’s same-store sales slipped 0.6 percent at owned and licensed locations in November and December. Same-store sales at owned stores decreased 0.7 percent during that period. Analysts had been calling for a 1.75 percent drop in same-store sales for the fourth quarter, per a poll from Refinitiv.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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