Target Sees First Sales Increase in a Year

Grocery deals and new brands drive second-quarter growth
By Newser.AI Read our AI policy
Posted Aug 21, 2024 9:28 AM CDT
Target Sees First Sales Increase in a Year
A shopper heads into a Target store on Jan. 11, 2024, in Lakewood, Colo.   (AP Photo/David Zalubowskim File)

Target's comparable sales increased for the first time in a year, driven by grocery deals for budget-conscious shoppers. Second-quarter sales at stores and digital channels rose 2%, reversing declines of 3.7% and 4.4% in the prior quarters. Transactions rose by 3%, with strong performances in all major merchandising categories, including a 3% rise in clothing sales and an 8.7% increase in online sales.

Target's profits and sales surpassed Wall Street forecasts, and the company boosted its annual profit outlook, though it noted that total sales this year could still be at the lower end of its guidance. Shares surged 13% before Wednesday's market opening and are up a total of 14% at the time of this writing. CEO Brian Cornell highlighted consumer resilience against high inflation, stating customers are "looking for newness, but they are also shopping, looking for value."

In response to shoppers' emphasis on necessities post-pandemic, Target reduced prices on thousands of essential items. The retailer also launched Target Circle 360 in April, offering perks like unlimited same-day delivery for $99 annually. This membership saw strong adoption, gaining over 2 million sign-ups in the second quarter. Additionally, Target continued to broaden its store label brands; it's now up to 45 of them. Quarterly profits reached $1.19 billion, or $2.57 per share, besting Wall Street expectations by one cent. (This story was generated by Newser's AI chatbot. Source: the AP)

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