Target 2020 sales skyrocketed, more than total sales growth over past 11 years
Target has seen sales skyrocket during the months of the pandemic, even when compared to its competitors and online shopping overall, the company said in its 2020 earnings report Tuesday.
Target’s 2020 sales increased 19.8% to $93.6 billion from $78.1 billion last year, the company said. Digital sales, which include home delivery and in-store pickup, increased 145%. The explosive growth was more than its total sales growth over the previous 11 years combined, Target said.
“Following years of investment to build a durable, scalable and sustainable business model, we saw record growth in 2020, as our guests turned to Target to safely provide for their families throughout the pandemic,” chairman and CEO Brian Cornell said in a statement.
The retailer gained $9 billion in market share during 2020, and revenue grew by $15 billion, Cornell said.
Some of that market share came at the expense of rivals, as CNN noted. Department stores and mall-based retailers have not rebounded since being forced to close during last spring, leading to a “stark divide in retail” that boosted Target and its big-box ilk, as well as Amazon, CNN said.
But other aspects of it were due to enhancement of previous strategies, the Minneapolis Star Tribune noted, since Target had already perfected a “store-centric fulfillment model” in the years leading up to the pandemic shutdowns.
To wit, same-day delivery services grew 235% during the fiscal year, which ended Jan. 30, the Star Tribune noted, with the retailer’s digital sales growing by nearly $10 billion.
Also contributing were a strong holiday season and stimulus checks that pushed Target past Wall Street’s expectations, CNBC reported.
Target also laid out plans to keep the momentum going, rolling out an aggressive investment strategy that includes plowing $4 billion a year into the business over the next several years, opening 30-40 new stores and remodeling hundreds more, the Minneapolis Star Tribune reported. New stores will be mostly its new small-format, The Associated Press reported.
“As we look ahead to 2021 and beyond, we see continued opportunity to invest in our business and our team, building on the strong foundation we’ve established to drive market share gains and deliver profitable growth for years to come,” Cornell said in the company’s statement.
