Record post-Thanksgiving sales have caused Target to raise its sales guidance.
The retailer announced Thursday (Jan. 16) that it now anticipates an approximately 1.5% increase in fourth-quarter comparable sales after earlier projecting flat growth.
“Compared with its third-quarter sales trends, the company saw a meaningful acceleration in discretionary categories during the holiday timeframe, most notably in apparel and toys, and saw continued strength in beauty and frequency categories,” Target said in a news release.
According to the release, total sales for November and December rose 2.8% compared to 2023, reflecting a 2% increase and record high sales for Black Friday and Cyber Monday. Digital sales for the two holiday months combined rose nearly 9% year over year, reflecting more than 30% growth in same-day delivery via the company’s Target Circle 360 program.
“In addition, the company saw nearly 50 percent growth in Target Plus, the company’s third-party marketplace,” the company said. “More than 97 percent of the company’s sales were fulfilled by stores.”
The uptick is good news for Target following a lengthy stretch in which it tried to jumpstart sales amid a downturn in consumer spending on nonessential goods. The company lowered its profit guidance last year, while chief competitor Walmart continued to report healthy earnings.
As recently as late November — just before Thanksgiving — Target CEO Brian Cornell was warning that customers were prioritizing essentials and seeking value amid economic uncertainty and rising costs.
“Consumers tell us their budgets are being stretched,” Cornell said on the company’s third-quarter earnings call. “They’re becoming resourceful, focusing on deals, then stocking up when they find them. Consumers allow themselves to splurge a little bit when they find the right item.”
This cautious spending behavior could be seen in Target’s third-quarter results, which showed modest growth amid a challenging retail environment. The company reported a 0.3% increase in comparable sales, down from its 2% growth in the second quarter.
“This slower pace underscored the ongoing volatility in the consumer market, as shoppers, still contending with economic pressures, have become more discerning in their purchasing habits,” PYMNTS wrote in November.
Also Thursday, Target announced a series of leadership changes. Mark Schindele, the company’s chief stores officer, will retire, replaced by Adrienne Costanzo, now serving as senior vice president of store operations.
Brett Craig, executive vice president and chief information officer, is also retiring. Prat Vemana, executive vice president, chief digital and product officer, will take over Craig’s role and stay on the leadership team.
And Sarah Travis, senior vice president for Target’s social commerce/digital ad operations, will be promoted to chief digital and revenue officer.
We get a lot of press releases here at PYMNTS. We consider all of them, and some are more newsworthy than others. But this one really got our attention. This past week, Diebold Nixdorf made headlines with its announcement of successfully installing two new automated teller machines (ATMs) at the U.S. National Science Foundation’s McMurdo Station in Antarctica. This achievement marks a significant milestone in banking accessibility, to be sure. We would like to meet the crew that installed them. We’d also like to know why they needed two. Was there a line at the first one? More to come on that.
According to Diebold, McMurdo Station is Antarctica’s largest research and logistics hub, supporting a fluctuating population that ranges from fewer than 200 residents during the winter months to up to 1,100 individuals during the summer (October through February). The presence of these ATMs is crucial, it says, as the next closest banking facilities are thousands of miles away, making them the only ATMs on the entire continent. How’s that for a value proposition?
The DN Series ATMs are designed for always-on availability. And why do they need two? One ATM is actively in use, while the second serves as a backup for spare parts, ensuring uninterrupted service in this isolated area. These machines are connected to the DN AllConnect Data Engine, which leverages Internet of Things (IoT) connectivity, machine learning, and artificial intelligence (AI) to monitor their performance. A dedicated team continuously aggregates and analyzes technical data to identify potential issues, enabling remote diagnostics and repairs. The ATM can be maintained by trained staff at NSF McMurdo Station, or the Diebold Nixdorf service team can remotely guide them through the repair process.
Anyway, it got us thinking. Are there other surprising ATMs in extreme locations? Well, of course, there are. Here’s a sampling of what we found.
At an altitude of about 5,364 meters (17,600 feet), the Mount Everest Base Camp in Nepal is another unexpected place to find an ATM. Although it’s not a permanent fixture and is often set up seasonally, it caters to climbers and trekkers who need cash for local transactions. This temporary ATM service underscores the adaptability of banking services in extreme environments.
In some parts of the Amazon rainforest, particularly in Brazil and Peru, ATMs can be found in small villages and towns. These machines are vital for local communities, providing access to cash in areas where digital payment options might be limited. The presence of ATMs here demonstrates how banking services can reach even the most remote communities.
Located in the Tibet Autonomous Region, Nagqu is home to one of the highest ATMs in the world. This region is very remote, with limited infrastructure, making the presence of an ATM a notable example of banking accessibility in extreme environments.
In the Thousand Islands (Kepulauan Seribu) off the coast of Jakarta, Indonesia, there’s a floating ATM. This unique ATM serves the local community and tourists on the islands, demonstrating how banking services can adapt to isolated marine environments.
Longyearbyen, the administrative center of the Svalbard archipelago in Norway, boasts the most northerly ATM. This location is one of the most remote inhabited places on Earth, with limited access to mainland Norway, making the ATM a vital service for residents and visitors.
On a more serious note, the installation of ATMs in places like Antarctica and other remote locations highlights the evolving nature of banking technology. With advancements in IoT, AI and remote diagnostics, it’s becoming increasingly feasible to provide banking services in areas previously considered inaccessible. As we look to the future, it will be interesting to see where else ATMs might appear. Whether it’s on a remote island, at the top of a mountain or even in space, the ability to access cash is becoming more universal than ever. And who knows? Maybe one day, we’ll see an ATM on Mars, serving the first interplanetary travelers.
For now, the presence of ATMs in unexpected places reminds us that banking is not just about transactions; it’s about connecting people and communities across the globe, no matter how remote they might be.
