Home category leads Target’s holiday sales growth

Home category leads Target’s holiday sales growth

Minneapolis – The home category continues to be a boon for retailers, with Target scoring a comparable sales increase for this sector in the low 20{6e11cad7ac0545e2324fbf6d445e3b83c9482a898fa074d95dae34b306dc1610} percent range for November and December.

The company, in its report on holiday sales, said comparable sales for the two-month period grew 17.2{6e11cad7ac0545e2324fbf6d445e3b83c9482a898fa074d95dae34b306dc1610}, driven by 4.3{6e11cad7ac0545e2324fbf6d445e3b83c9482a898fa074d95dae34b306dc1610} traffic growth and a 12.3{6e11cad7ac0545e2324fbf6d445e3b83c9482a898fa074d95dae34b306dc1610} increase in the average ticket. Digital sales experience a huge gain – up 102{6e11cad7ac0545e2324fbf6d445e3b83c9482a898fa074d95dae34b306dc1610} – while store-originated comparable sales rose 4.2{6e11cad7ac0545e2324fbf6d445e3b83c9482a898fa074d95dae34b306dc1610}.

In an article on the company’s website, Target explained its growth in home-related sales: “From baking in the kitchen to posing in matching jammies for holiday photos, families spent more of the season at home. And Target curated a special assortment with everything they needed – holiday gifts and toys, foods, apparel, décor and essentials – to make the most of their time together…”

“The momentum in our business continued in the holiday season with notable market share gains across our entire portfolio,” said Brian Cornell, chairman and CEO. “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.

“We’ve seen continued strong sales trends in the new year,” he added, “and as we turn to our 2021 plans, our team is focusing on continuing to build on the guest engagement and significant market share we gained throughout 2020.”

Same-day fulfillment played a major role in comparable sales growth, with order pick up, drive up and Shipt combining for 193{6e11cad7ac0545e2324fbf6d445e3b83c9482a898fa074d95dae34b306dc1610} growth. Drive up itself grew by 500{6e11cad7ac0545e2324fbf6d445e3b83c9482a898fa074d95dae34b306dc1610}, while sales fulfilled by Shipt grew 300{6e11cad7ac0545e2324fbf6d445e3b83c9482a898fa074d95dae34b306dc1610}. Stores fulfilled 95{6e11cad7ac0545e2324fbf6d445e3b83c9482a898fa074d95dae34b306dc1610} of November/December sales through a combination of in-store, same-day services and ship-from-store capabilities.

Along with the robust home category, Target reported comparable sales gains in the low 20{6e11cad7ac0545e2324fbf6d445e3b83c9482a898fa074d95dae34b306dc1610} range for hardlines; growth in the low teens for beauty and essentials, and single-digit comparable sales growth for apparel. While not citing specifics, food and beverage growth was reported to be in line with the company average.

During the holiday season, Target added 3.3 million people to its Target Circle loyalty program.

The company also announced that its stores will be closed on Thanksgiving Day 2021 – a practice put into place in 2020 because of the pandemic.



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