Samuel Case, FISM News
This week, Target reported their best quarter ever with Fortune reporting that in the second quarter the store’s “online sales nearly tripled” during the coronavirus pandemic thanks to services such as same-day delivery and curbside pickup. According to the corporate report, online sales rose by 195% and overall profits rose 85%. The total revenue was $22.9 billion with $3.9 billion coming from online sales.
Target was deemed to be an essential business at the beginning of lockdowns because of their instore pharmacy and grocery market. This left Target as a go-to for many shoppers thanks to its large selection and variety of goods such as electronics, furniture, and clothing. Electronics had the biggest boost in sales with an increase of 70%. Makeup and furniture was up more than 20%, groceries were up close to 20%.
Target CEO Brian Cornell told CNBC he thinks the reason the company has performed so well is due to consumers canceling vacations, as well as other sectors such as entertainment and hospitality being shut down. “In the pandemic, we’re not going to restaurants, we’re not going to movies,” Cornell said. “Those traditional summer trips have been canceled. We’re not on planes. We’re not spending dollars on lodging, so many of those dollars have been redirected into retail.”
Sourced from Target, Fortune, and CNBC.