Target (NYSE: TGT) announced Wednesday that comparable sales had jumped 17.2% and online sales rose 102% during November and December, amid the holiday season. Consequently, the company presented a positive outlook for its business 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,” Target CEO Brian Cornell said.
Cornell added that the retailer experienced “notable market share gains across our entire product portfolio.”
The company’s market value is approximately USD100 Billion and shares were down about 1% on Wednesday. Nevertheless, prior to this, shares reached an all-time high of USD199.96 and the stock rose about 60% during the last year.
As a means of profiting off of sales during the holiday season, the company commenced deals in early October. Ultimately, the tactic allowed the retailer to fan out traffic and balance the average Black Friday commotion. Furthermore, online deals were introduced with the option of pick-up and delivery.
According to Stifel analyst Mark Astrachan, Target’s holiday sales exceeded consensus estimates. However investors already had high hopes for the company, hence why the reaction was not as prominent.
Due to effective business moves, Target has been enjoying the success. The retailer owns Shipt, a delivery service, provides curbside pickup and has grown the selection within its food and beverage private label called Good & Gather.
Astrachan said in a research note that he anticipates the company will maintain its e-commerce gains as its continuous same-day services such as curbside pickup save customers time.