Minneapolis based Target has released its fiscal third quarter earning report Wednesday surprising analysts across the board with gains in nearly all departments. Curbside pickup grew by 500%, which is huge compared to other retailers like Walmart who had battled a negative public perception about it’s online same day pickup service. Target’s home delivery service was up 280% as it continues to use Shipt.
According to Target, it has gained more than $6 billion in marketshare this year as smaller retailers were forced to close in many areas due to the pandemic. Target remained open as an essential retailer because it sells food, medicines, clothing, some home improvement and other common necessities.
Target said it improved curbside pickup service with many online orders ready within an hour, improved its offerings in clothing and electronics, and worked to identify shopper’s habits and adjust to meet those needs. Customers increased the number of times they went to a Target each month in 2020, and each trip the average number of items in their basket increased when compared to 2019 sales. Electronics are up 50% as more people either work from home or attend classes from home, kitchen supplies are up more than 30% as more people eat at home. Shopper’s trends also changed as more bought higher quality items that tend to last longer.
Target said it plans to grow its health and beauty segment by opening smaller versions of the popular Ulta Beauty shops inside existing stores. Company CEO Brian Cornell said they have many more planned upgrades and service improvements planned for 2021. One of the big changes coming to Target are the smaller neighborhood stores being opened with new test stores already open in Houston and Denver. These new smaller stores are expected to compete with CVS and Walgreens as they will offer a pharmacy like their big box stores, but also offer a wider range of common and popular items found inside larger Target stores.