{"id":117448,"date":"2020-08-19T11:57:06","date_gmt":"2020-08-19T15:57:06","guid":{"rendered":"https:\/\/www.borndigital.com\/?p=117448"},"modified":"2021-05-28T15:27:07","modified_gmt":"2021-05-28T19:27:07","slug":"target-adds-10-million-digital-customers-in-six-months","status":"publish","type":"magazine","link":"https:\/\/brainstation.io\/magazine\/target-adds-10-million-digital-customers-in-six-months","title":{"rendered":"Target Adds 10 Million Digital Customers in Six Months"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Need to Know<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The U.S. retailer blew past forecasts, reporting Q2 profits of $1.7 billion, an 80.3% year-over-year increase.<\/li><li>The jump was led by a huge increase in e-commerce as comparable digital sales grew by 195%.<\/li><li>Target also reported 10 million new digital customers in the first half of 2020.<\/li><li>Sales fulfilled by Shipt, the courier system owned by Target, grew by more than 350% year-over-year, while curbside pick-up sales grew 700%. <\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Analysis<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>U.S. retail giant Target blew past industry forecasts with <a href=\"https:\/\/corporate.target.com\/article\/2020\/08\/q2-2020-earnings\">its Q2 report<\/a> this week, posting profits of $1.7 billion, an 80.3% spike from the same time last year.<\/p>\n\n\n\n<p>The effects of the COVID-19 pandemic on consumer shopping habits were apparent in Target&#8217;s Q2 earnings report. The company reported strong digital growth, with 10 million new digital customers shopping with Target in the first half of 2020, leading to a 195% spike in online sales for the second quarter of the year. Sales fulfilled by Shipt, the delivery company that Target purchased in 2017 for $550 million, grew by 350% year-over-year; Drive Up, Target&#8217;s curbside pickup system, saw growth of a whopping 700% compared to Q2 of 2019.<\/p>\n\n\n\n<p>Overall revenue for Target in Q2 was $23 billion, compared to the $20.09 billion that was expected for the company.<\/p>\n\n\n\n<p>&#8220;The key to our success is we&#8217;ve been true to our strategy, and our team is really focussed on being agile and flexible and adjusting to the current operating environment,&#8221; said Target CEO Brian Cornell. &#8220;We&#8217;ve been changing the playbook every week.&#8221;<\/p>\n\n\n\n<p>In-store pickup also grew, increasing by more than 60% in Q2; overall, more than 90% of Target&#8217;s overall sales involved its stores, whether this meant that customers were purchasing in-store or picking up curbside, or that Target was shipping items directly from brick-and-mortar store locations.<\/p>\n\n\n\n<p>Across individual categories, Target saw a 70% spike in electronics sales, as more individuals adjust to work-from-home arrangements. Food and beverage and essentials sales were up 20%, while home purchases increased by 30%. Sales of products by Good &amp; Gather, Target&#8217;s in-house brand, hit $1 billion; that brand was introduced less than a year ago.<\/p>\n\n\n\n<p>Target&#8217;s digital sales have been on the uptick since the pandemic began: the company reported a <a href=\"https:\/\/brainstation.io\/2020\/05\/21\/target-sees-digital-sales-spike-141\">141% spike in digital commerce in Q1 of this year<\/a>, with overall sales rising by 10.8% over the same period. The company this week joined fellow retail giant Walmart in posting impressive Q2 results, with that company <a href=\"https:\/\/brainstation.io\/2020\/08\/18\/walmart-posts-e-commerce-sales-spike-of-97\">reporting $137.74 billion in revenue,<\/a> and a Q2 surge in digital sales of 97%, on Tuesday. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Need to Know The U.S. retailer blew past forecasts, reporting Q2 profits of $1.7 billion, an 80.3% year-over-year increase. The jump was led by a huge increase in e-commerce as comparable digital sales grew by 195%. Target also reported 10 million new digital customers in the first half of 2020. Sales fulfilled by Shipt, the [&hellip;]<\/p>\n","protected":false},"author":76318,"featured_media":112067,"menu_order":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"categories":[13,3397],"tags":[2483],"magazine-region":[],"magazine-series":[],"magazine-topic":[],"class_list":["post-117448","magazine","type-magazine","status-publish","has-post-thumbnail","hentry","category-News","category-retail","tag-target"],"acf":[],"_links":{"self":[{"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine\/117448","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine"}],"about":[{"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/types\/magazine"}],"author":[{"embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/users\/76318"}],"version-history":[{"count":0,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine\/117448\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/media\/112067"}],"wp:attachment":[{"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/media?parent=117448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/categories?post=117448"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/tags?post=117448"},{"taxonomy":"magazine-region","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine-region?post=117448"},{"taxonomy":"magazine-series","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine-series?post=117448"},{"taxonomy":"magazine-topic","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine-topic?post=117448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}