Target reported Wednesday (Jan. 13) that comparable digital sales more than doubled during the holiday period, while in-store sales also surprisingly grew despite the pandemic.
“The momentum in our business continued in the holiday season with notable market share gains across our entire product portfolio,” Target Chairman and CEO Brian Cornell said in releasing holiday sales figures. “We’re very pleased with our results, and the strength of our performance is a reflection of the tireless work of our team to support our guests through a safe, convenient and inspirational experience.”
Target said comparable digital sales grew 102 percent in the November/December period, while store-originated comparable sales rose 4.2 percent. Target said it also saw a 4.3 percent increase in traffic and a 12.3 percent gain in average ticket size.
All told, overall comparable sales — both online and in-store — grew 17.2 percent. That’s an impressive showing for a holiday season that many originally feared COVID-19 would destroy.
Target also said comparable sales grew during the holiday period in all five of its core merchandising categories, allowing the chain to increase market share in each.
The company said its Home category saw the strongest gains, with comparable sales there growing in the low-20 percent range. Target’s Hardlines segment also saw comparable sales expand in the low 20 percent range, while Beauty & Essentials grew in the low teens in percentage terms.
Apparel comparable sales expanded by high-single-digit percentages, while Target said its Food & Beverage segment saw comparable-sales growth “in line with the company average.”
Same-Day Pickup Options Were Key
The chain attributed much of its strong digital results to the availability of same-day fulfillment through its Order Pick Up, Drive Up and Shipt delivery options, which collectively saw 193 percent gains.
Target said the Drive Up option — which offers curbside pickup arranged via the Target app — saw the biggest gains, soaring more than 500 percent. Target’s sales fulfilled by Shipt likewise expanded by more than 300 percent.
The company added that between store-originated sales, same-day services and the ship-from-store operations, Target fulfilled approximately 95 percent of its November/December period via its brick-and-mortar shops.
CEO Cornell added that Target’s strong holiday results have kept going so far in 2021.
“We’ve seen continued strong sales trends in the new year, and as we turn to our 2021 plans, our team is focused on continuing to build on the guest engagement and significant market share we gained throughout 2020,” he said.
In-Person Pickup Helped Retailers Industrywide
Target’s success with holiday digital sales and pickup options is consistent with research released this week from Salesforce.
The CRM giant said on Tuesday in its 2020 Holiday Shopping Report that worldwide digital spending rose 50 percent year over year during the holiday season to hit $1.1 trillion worldwide. Salesforce also found that U.S. online holiday sales grew 43 percent to reach $236 billion, up from $165 billion a year earlier.
Additionally, the report found retailers that offered in-person pickup options enjoyed the biggest year-over-year digital-sales gains over the holidays.
Salesforce reported that U.S. retailers offering such options as curbside, drive-through and/or in-store pickup saw digital revenues grow 49 percent year over year on average, versus just 28 percent growth for stores that didn’t.
Such stores also saw 54 percent year-on-year online sales gains in the five days leading up to Christmas, while those that didn’t offer such options only enjoyed 34 percent annual gains.
“With strained shipping systems and consumers prioritizing safety, retailers with curbside, drive-through and in-store pickup options outperformed those without these services,” Salesforce wrote in its report.
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