Sponsored By

E-commerce gives Target holiday sales boost

Same-day pickup, delivery sales jump 193% in November/December period

Russell Redman

January 13, 2021

4 Min Read
Target_store-order_pickup_area.png
Among same-day services, Drive Up curbside pickup led the way during the holiday season with a more than 500% comparable sales increase.Target

Target Corp. tallied 17.2% comparable sales growth for the 2020 holiday sales period, with online transactions driving the bulk of the gain.

Target reported Wednesday that comp-store sales climbed 4.2% year over year for November/December, while digital sales jumped 102% for the period. The Minneapolis-based mass merchant said the overall comp-sales increase was fueled by a 4.3% uptick in traffic and 12.3% growth in average ticket size.

The robust holiday performance reflected strong quarterly results by Target throughout 2020, as the company continues to fine-tune an omnichannel strategy of positioning its nearly 1,900 stores as “hubs” to fulfill both in-store and digital purchases — a model appreciated by U.S. consumers amid a surge in the COVID-19 pandemic.

“The momentum in our business continued in the holiday season, with notable market share gains across our entire product portfolio,” Target Chairman and CEO Brian Cornell said in a statement. “We’re very pleased with our results, and the strength of our performance is a reflection of the tireless work of our team to support our guests through a safe, convenient and inspirational experience. Throughout the holidays, we delivered joy for holiday shoppers while focusing on safety, adjusting promotions to reduce crowding while delivering easy, contactless fulfillment options through Drive Up and Shipt.”

Related:Target’s Q3 comparable sales leap almost 21%

Combined, same-day services — Order Pick Up in-store pickup, Drive Up curbside pickup and Shipt home delivery — generated 193% digital comp-sales growth in November/December, according to Target.

Drive Up led the way with a more than 500% sales increase, followed by Shipt at over 300% growth. Meanwhile, shoppers made 5.1 million fresh grocery orders via Order Pick Up for their holiday meals, the retailer said.

Target_Order_Pickup_counter.jpg

Customers made 5.1 million fresh grocery orders through in-store Order Pick Up for their holiday meals.

Customers bought 150 million items via Drive Up and Order Pick Up in December, nearly four times more than a year ago. Target said one day during the month also saw 6.5 million items fulfilled through Drive Up and Order Pick Up, the most ever in a single day. The company added that Cyber Week (starting on Cyber Monday after the Thanksgiving holiday weekend) was the company’s “biggest yet” as digital orders, site traffic and Drive Up orders hit record highs.

Including store-originated sales, same-day services and ship-from-store orders, about 95% of November/December sales were fulfilled by stores, Target said, noting that three-quarters of Americans live within 10 miles of a Target store. 

On the merchandise side, Target said it gained market share in all five of its core categories during the the November/December holiday period. The home category generated the strong growth, with comp sales up in the low-20 percent range. Hardlines was right behind with low-20s gains, including mid-20s growth in electronics. The retailer said food and beverage comp sales rose “in line with the company average,” and the beauty and essentials category posted growth in the low teens. Apparel comp sales increased in the high-single digit range.

Related:Target to partner with Ulta Beauty for ‘shop-in-shop’ concept

Target added that it drew 3.3 million new members to its Target Circle loyalty program, which enables shoppers to earn extra rewards.

“We’ve seen continued strong sales trends in the new year,” Cornell stated, “and as we turn to our 2021 plans, our team is focused on continuing to build on the guest engagement and significant market share we gained throughout 2020.”

So far, retailer holiday sales look to be on the upside, according to Jefferies analyst Stephanie Wissink. Besides Target, she cited strong results at Costco Wholesale, which reported overall comp-sales growth of 13.4% for November and 10.7% for December.

“In looking at select retailers, including several softlines companies, holiday sales generally have performed in line or better than expectations, with many noting a strong January, benefiting from [federal COVID-19] stimulus,” Wissink wrote in a research note on Wednesday. “Based on strong retail trends so far, we believe the holiday was likely relatively strong for Walmart and BJ’s Wholesale Club as well, and look for additional stimulus to also benefit.”

The National Retail Federation (NRF) reported last week that retail sales for the first 11 months of 2020 — excluding automobile dealers, gas stations and restaurants — rose 6.6% year over year, with November sales up 8.8%. NRF said that growth put the holiday season on track to meet its forecast of a 3.6% to 5.2% sales gain. The U.S. Census bureau is slated to report December retail sales on Jan. 15, which will give a fuller picture of the holiday sales performance NRF added.

Read more about:

Costco

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like