THE WHAT? U.S. retailer Target has profited from the COVID-19 virus outbreak with FY revenues rising 20 percent, reaching $93.6 billion, according to a report by the Wall Street Journal.
THE DETAILS Comparable sales from stores and e-commerce, operating for at least 12 months ending 30 January, rose 21 percent, with net earnings in the most recent quarter reaching $1.38 billion, up 66 percent YOY.
E-commerce was up annually, with 18 percent of sales coming from digital sales – an increase of 8.8 percent.
THE WHY? A boom in demand for online services was credited for the sales increase, including same-day pick-up and delivery.
Likewise, the company has achieved 95 percent of sales from store fulfilment over the past year, including in-store purchases and online orders fulfilled by stores. This business model as well as increased demand for items such as home décor, toilet paper and food, has seen Target win market share during the GVC.
CEO Brian Cornell said, “Following years of investment to build a durable, scalable and sustainable business model, we saw record growth in 2020.”
Target is set to continue with store remodels and additional investments throughout 2021, having put a hold on activity during the pandemic outbreak.