Retail

Target's Digital Comp Sales Rocket 141 Pct

Target Corporation’s digital comparable sales rocketed during the first quarter, rising 141 percent and comprising 9.9 percentage points of Target’s comparable sales growth. Digital comparable sales accelerated each month in the quarter to 282 percent in April from 33 percent in February, according to an earnings announcement on Wednesday (May 20).

The retailer said that stores fulfilled almost 80 percent of its first-quarter digital sales. Same-day services jumped 278 percent and comprised roughly 5 percentage points of overall company comparable sales growth. Additionally, the company experienced “healthy” market-share increases throughout its five core merchandise areas. Target reports that store comparable sales rose 0.9 percent.

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

Cornell continued, “With our stores at the center of our strategy, and a significant investment in the safety of our team and guests, our operations had the agility and flexibility needed to meet the changing needs of our business.”

Target Corporation reported total revenue of $19.6 billion and adjusted earnings per share of 59 cents for the first quarter.

The news comes as it was reported that Walmart had announced its Q1 earnings, crushing even the best expectations for in-store and eCommerce revenue. In-store comps were 10 percent over last year and eCommerce rocketed 74 percent as shoppers stocked up on essential and nonessential products.

Walmart’s online shopping increase came from grocery sales and Walmart.com. The retailer has been scaling back the Jet.com business it bought for $3.3 billion in 2016 and had announced it will now close it out. The digital spike was also assisted by the April 30 introduction of Express Delivery that provides grocery and other items within two hours.

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