Target and Walmart’s 3Q results are just – Wow!
The strong simply continue to get stronger in the retailing world of 2020. Two prime cases in point are Target and Walmart. Each reported outstanding third-quarter results — earnings, sales and market share gains — as they continue to find ways to get consumers to say “yes” to the wide variety of products they are selling and services they are offering.
Target reported a combined digital and physical location sales increase of 20.7 percent for stores open at least a year. The chain’s online business jumped 155 percent during the quarter, while the dollars rung up at its physical locations increased 9.9 percent.
Target continued to report growing acceptance of its same-day services, including in-store and Drive Up order pickup, as well as deliveries made by its Shipt subsidiary. Target recently announced it was doubling up on the number of Drive Up parking spots in its lots as the service, available through its app, has proven increasingly popular with customers during the pandemic.
“We’ve seen a deepening level of engagement and trust from our guests. The result is unprecedented market share gains and historically strong sales growth, both in our stores and our digital channels,” said Target CEO Brian Cornell in a statement. “In preparation for the holiday season, we focused first on the safety of our guests and our team, making changes to eliminate crowds while enhancing our fast-growing, contactless options like in-store pickup, Drive Up and Shipt. In a holiday season that will feel different for our guests, we’re committed to helping them navigate the season safely, as they find new ways to celebrate with family and friends.”
Walmart was not exactly a slouch during the third quarter either as the retailing giant posted a 6.4 percent gain in same-store sales, picking up market share in food, general merchandise and health and wellness categories.
The retailer’s online sales jumped 79 percent during the quarter as its various delivery and pickup options continued to buoy performance. Walmart also formally introduced its Walmart+ unlimited delivery service from stores for a $98 annual subscription fee. The chain also said it has more than doubled the number of personal shoppers it has on the job to fill customers’ pickup and delivery orders during the holiday season.
- Target Corporation Reports Third Quarter Earnings – Target Corporation
- Do Americans think that Target is the easiest place to shop? – RetailWire
- Are Target’s skyrocketing online sales retail’s new normal? – RetailWire
- Walmart Releases Q3 FY21 Earnings – Walmart
- Walmart is Ready for Holiday Pickup and Delivery Orders with More Than Double the Personal Shoppers Than Last Year – Walmart
- Will Walmart’s best shoppers ditch Amazon Prime for Walmart+? – RetailWire
DISCUSSION QUESTIONS: What do you see as the relative strengths of Target and Walmart at this point in time? Where do you see further opportunities for improvement at each retailer?