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Target has been performing really well for the past years, and unsurprisingly got the title Retail of the Year. Last Wednesday, it was reported that Target’s share increased by 14.1%, and the stocks rose to 90% outperforming Walmart and TJX. Target seems to be the newest department store in the country. Macy’s, Kohl’s, J.C. Penney, Walmart, should need to look out for this strong competitor, according to pressreels.com. In the third quarter, Target has a same-store sales increase of 10%, their apparel rose 20% on sales.
What made Target increase its profit is by cutting through their online orders. They have made strategic transformation and initiatives which would decrease their handling costs. Target’s CEO Brian explained the process by which the store fulfills the online order from its store rather than shipping it from the distribution center. The expenditure decreases the cost by 40% according to pressreels.com. Its digital sales increased by 31% because of its same-day service.
Another tactic that Target came up with is changing the consumers’ experience by putting up more diverse mannequins. This led to broadening up their market. Target stores have now better lighting and an excellent spacious dressing room for their clientele. Target also partnered with new brands like Levi’s and Champion. The experience plus the low prices made way for them to become one of the best retails in the country.
Pressreels.com released these figures of Target’s estimate vs. the actual sales.
Total sales: $18.22 billion vs. $18.7 billion
Earnings: $1.19 vs. 1.36
Same-store sales: 3.5% increase vs. 4.5 % increase
Gross profit margin: 29% vs. 29.8%
Full-year earnings guidance $6.18 vs$6.25- $6.45
Several traders and advisories believe that Target will continue to climb higher, and stocks would still rise up as well as healthy revenue will be expected after its investment in different private label products too. These and all factors are going to help kick in for their uprising in the future.
Pressreels.com added that Walmart, also the country’s biggest department stores, entered into the online sales, but they weren’t entirely successful as compared to Target. As a matter of fact, they are now trying to copy what Target is doing – online orders can now be picked up at the store or curbside. Amazon, another giant retailer, lacks the brick and mortar factor. They simply couldn’t catch up with the trend that these department stores have. Although, Amazon is adding more lockers to Whole Foods supermarket and shopping malls.
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