Target's digital sales grew 50% in the first quarter, exceeding expectations

Target's digital sales grew 50% in the first quarter of 2021

Relevant data shows that as of May 1, 2020, Target's net sales increased by 23.3% to US$23.88 billion compared with the same period in 2020. This is mainly because its investment in exclusive brands and services (such as curbside pickup) has enhanced customer loyalty and attracted more repeat customers.

In addition, net income in the first quarter reached $2.1 billion, more than six times the $284 million in 2019. Target said, "We are seeing a more optimistic consumer who is excited about returning to the life they didn't have last year." Although the situation this year is more severe, the forecast for the second quarter is higher than expected.

It is worth noting that in the first quarter of 2021, Target's comparable sales increased by 50%, compared with 141% in the same period last year. Industry analysts pointed out that omnichannel shopping, that is, customers can switch seamlessly between physical stores and online shopping, is the main reason for the strong growth of both parties.

Clothing sales surged 60% , making it the fastest growing category

Target data showed visits were up 17% and basket size was up 5% in the three-month period compared with the same period last year . Its comparable sales, a key metric tracking sales at stores open for at least 13 months online, rose 22.9% from the same period last year, significantly beating analysts' expectations of 10.7%.

Target said apparel was its strongest merchandise category this quarter, with sales up more than 60 percent compared with the same period last year . The "hardline" category, which includes categories such as consumer electronics and sporting equipment, had the highest growth rate of 30 percent, while home sales grew in the mid-30 percent range .

Beauty sales rose by a high-teens percentage. Food and beverage and essentials (two categories that stood out at the height of the pandemic) grew by low- to mid-single digits.

Despite facing difficult year-over-year comparisons due to unusually high sales volumes during the COVID-19 pandemic, Target expects comparable sales to grow in the mid- to high-single digits in the second quarter of 2021 , with compounded sales growth in the third and fourth quarters to be positive single digits.

Target

First quarter financial report

Digital Sales