In the pandemic, we have seen many businesses had to pull down their shutters due to the Covid-19 shutdowns. There were many theme parks, theatres, video game centers and restaurants that had to remain shut completely throughout the pandemic. This pandemic wave had strongly hit the businesses that were seeing negative growth in the pre-pandemic era. There was a lot of news of the businesses shutting down. But some even managed to stay alive. They were somehow able to withstand this storm and have barely passed this era. But, there are some businesses that had worked brilliantly in this era to emerge victoriously. Either these businesses didn’t require dealing with the masses, or they might have changed significantly with the changing times. One such company which is making the top headlines is Target.
Target Gets Higher Than ‘Target’ Sales In The Fourth Quarter Of 2020
Target is able to extend the strong streak in the last quarter, and the sales have surged by more than $15 billion in this Covid-19 year, which has exceeded the annual sales of the company growth in the past eleven years in total.
Due to the spread of Covid-19, the habits of the billions of people across the U.S. have been altered. Owing to this, the sales for online shopping have grown up by about $10 billion, and Target has made the people’s shopping experience very easy.
In the fourth quarter, the profits reached as high as 66%, which the company has reported on Tuesday, and sales jumped by a whopping 21%, thus topping Wall Street’s expectations.
The sales at the offline stores that have opened for more than a year had risen by 6.9% compared to the particular time span last year. Online sales had soared by 118%. While the customer traffic has risen by 3.7% in stores and the average dollars spent per person has risen by 15%.
The same-store offline sales has risen by 10%, and online sales has spiked by 155% in the last quarter. This Minneapolis retailer has reached a market share of up $9 billion in as compared to its rivals in the fiscal year 2020.
The big box stores that had the Lowe’s, Home Depot, and Walmart had big sales in the fourth quarters; the Americans are still consolidating these shopping detours.
Like all the other stores, Target has been allowed to remain open since the onset of the Covid-19 in 2020, but mall-based retailers and the department stores were asked to remain temporarily closed as they had been considered non-essential. This has led to an increase in the dominance of the company and other such companies.
Target, which was already working on the expansion of its delivery services just before the pandemic outbreak, pushed itself harder on that front. Services on the same-day basis, such as – inside store order picking – increased 212%, coupled with drive-up service, which led to an increase of nearly 500%.
Target’s stores’ omnipresent locations proved a boon for the company as clients could access it easily anywhere. Its own stores carried out almost 95% of sales of Target’s fourth-quarter.
As a result of the outcome of this, the company’s annual turnover had jumped to $92.4 billion in this year from $77.1 billion in the previous year.
Target has recently announced a set of partnerships that might help in driving many shoppers in its stores. By the end of the last year, the company has signed a partnership with a beauty brand, Ulta Beauty, which will place the Ulta shops in 100 Target stores by the middle of 2021.