Target: digital channels boost sales

(CercleFinance.com) - Target is achieving "record" digital growth, strong demand for same-day fulfillment services and market-share gains in the middle of the Covid-19 crisis, the US discount retailer said on Thursday.


Since its fiscal second quarter began in early February, comparable sales have grown by more than 7%, as the slight decline of its store trafic has been more than offset by over 100% growth in digital channels, the company said.

In terms of categories, comparable sales have grown more than 20% in essentials and food and beverage, Target said, with over 16% growth in DIY and home equipment.

Unsurprisingly, sales of apparel and accessories slumped, falling over 20%.

Despite this solid performance, Target said it expects its short-term profitability to be affected by the Covid-19 pandemic, which led to a 5% fall in its share price in early morning trading on Thursday.

Target also said that it will extend its two-dollar an hour temporary wage increase for employees until 30 May.

In March the retail giant announced a 300 million dollar investment in wages, bonuses, paid leave and benefits for its "frontline" employees.

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