Sales exceed $16 billion! Target's online sales explode

As the pandemic changed the way people shop, Target has been ahead of most competitors in rapidly expanding consumers' shopping channels and achieving impressive results .

In 2020 , Target 's overall sales increased 19.8% to $92.4 billion from $77.1 billion the previous year . For the year, the company's sales increased by more than $15 billion, exceeding the combined sales growth of the previous 11 years . And Target 's market share increased by $ 9 billion due to strong growth in demand for apparel, home, beauty and essentials, food and beverages, etc.

E-commerce sales exploded throughout the year

Target reported that its e-commerce sales exploded 145% in the fiscal year ending January 30, with online sales reaching $16.63 billion, up nearly $10 billion from 2019, according to Digital Commerce 360 .

This means that Target 's e-commerce accounted for 18% of its total sales , compared to 9% in 2019 and 7% in 2018.

Target 's total revenue for the fourth quarter ended January 30 was $28.34 billion, up 21.1% from $23.40 billion. Target 's e-commerce sales grew 118% during the quarter .

Target said that sales of curbside pickup Drive Up increased 600% year-over-year ; same-day delivery business increased 300% through Target's partnership with delivery provider Shipt ; and online orders from stores increased 70% compared to 2019. Add it all together, deliveries for same-day services increased 232% year-over-year.

In addition to this, the company said that the average omnichannel customer spends four times more than a store-only buyer and 10 times more than a digital -only customer . And, in 2020, Target added 12 million new omnichannel buyers.

Increase investment to improve order delivery capabilities

According to foreign media reports, in the next few years, Target will invest approximately US$4 billion each year to speed up the opening of new stores, renovate existing stores and improve its ability to quickly fulfill online orders.

Target's next steps will also include opening 30 to 40 new stores each year , some of which will be opened near college campuses and in large cities such as New York, Los Angeles and Portland. The company will remodel about 150 stores before the holiday season and more than 200 stores each year thereafter.

The company will add two distribution centers this year and two more next year. In the new year, Target will try new ways to speed up and improve customer service.

Target Chief Financial Officer Michael Fiddelke said that through this series of measures, the company will take the initiative , seize opportunities and continue last year's growth momentum.

As customers begin to return to more normal shopping habits, Target CEO Brian Cornell predicted that consumers will resume buying luggage and apparel , which have been weaker categories for the company this year.

“I don’t know if it’s going to be the next two months or 12 months, but I do think we’re going to see people start buying apparel again, taking off their yoga pants and starting to dress up and go out to eat with family and friends ,” Cornell said .

Target

E-commerce

Online Sales