Target’s strategy to concentrate on its eCommerce business has moved the big-box retailer to the No. 8 position in eMarketer’s latest ranking of the nation’s top merchants by online sales.
Target used to rank 11 in terms of online sales but blew past three competitors to become eighth, with 1.2 percent of total online sales in the U.S. While growth is strong for Target’s eCommerce business, QVC and HSN owner Qurate Retail Group have dropped.
In 2020, Target’s online sales revenue will jump 24 percent to $8.34 billion, and its share of the U.S. eCommerce market will increase from 1.1 percent in 2019 to 1.2 percent, according to eMarketer.
“At a time when brick-and-mortar stores are struggling to keep up with the fast-changing retail landscape, Target seems to have hit the bullseye,” said Cindy Liu, eMarketer forecasting analyst. “Store renovations and expanding same-day fulfillment options, such as in-store pickup, drive-up and delivery with Shipt, are paying off. Target has found a way to use its stores to fulfill online orders while keeping up with customer demands for convenience and speed.”
The big-box store will move past Costco’s $8.33 billion in online sales. Although Macy’s online sales are growing, its percentage of sales will go down to 1.1 percent from 1.2 percent in 2019. Qurate will see a drop in eCommerce share for the second consecutive year, dropping from 1.2 percent to 1 percent. Qurate is off the top 10 list for the first time.
“The softening apparel market is adding pressure to both Qurate and Macy’s, whose main product lines are made up of apparel and fashion,” Liu said. “As these two retailers struggle to meet the demands of consumers and fail to pull in new shoppers, we will see other retailers capitalize on their share declines this year.”
Other retailers on the top 10 list — like eBay and Apple — will see their percentages of the U.S. eCommerce market dip in 2020. Conversely, Amazon’s piece of the pie will move up to 38.7 percent from 37.3 percent in 2019 and capture 4.6 percent of total U.S. retail sales both online and offline.
Target’s third quarter earnings reports in November beat expectations, and its posted eCommerce growth surged 31 percent during Q3 2019. Most of that growth, 80 percent, was due to its expansion into same-day delivery.
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