Target is the new Walmart
Sales are waaay up… Target reported that sales were up 6.5% at stores open for at least one year this week. To put this in perspective, Target hasn’t done that well since 2005. Customers ran to Target this quarter for clothing, toys, electronics, home goods, and probably to avoid the people of Walmart. Shares of the retail giant are up 47% over the past year.
Target is mixing it up… by redesigning stores, creating more exclusive brands, and lowering prices. They are also building smaller stores in big cities and near college campuses. And, of course, the retailer improved the online side of things. Digital sales for Target were up 41% compared to last year.
Don’t count brick-and-mortar out… especially in the case of Target, because the company’s same-store sales growth beat that of Walmart – and people thought Walmart had a great quarter. Target also capitalized on the downfall (or impending downfall) of many retailers like Toys R Us, Bon Ton, JCPenney, and Sears. When is everyone else going to get with the program?