Will Target’s customers treat October 10 like Black Friday?
Target announced yesterday that it will kick off its Christmas promotions on Sunday, October 10. The retailer is looking to cash in on the opportunity created by earlier shopping trends this year as supply chain disruptions and product shortages have become daily news.
The retailer’s Target Deal Days promotion will run for three days with big savings promised on thousands of items in the chain’s 1,900 stores, online and through its mobile app. It will mark the first time that Target has made all its deals available on all sales touchpoints to its customers.
“Guests are excited to shop early, and our team is ready to help them prepare so they can celebrate what matters most — time with family and friends,” said Christina Hennington, executive vice president and chief growth officer, Target.
Research by AlixPartners found that 53 percent of consumers plan to start their holiday shopping before Halloween this year, a four percent increase over last year. RetailMeNot found that 59 percent of shoppers expect to start shopping for Christmas before October is done.
Target is playing up savings in a year when prices have increased steadily. The retailer is publicizing a price match guarantee for the holiday season to “provide guests with the confidence they’re getting the best deals at Target, no matter when they choose to shop,” said Ms. Hennington.
Target has been one of the shining lights in the industry since the pandemic hit. COO John Mulligan told analysts on the company’s earnings call last month that it has taken steps to fortify its inventory of goods and is “well-positioned” to drive sales for Christmas 2021 versus its record performance last year.
The chain’s comparable sales during November and December 2020 were up 17.2 percent as traffic increased 4.3 percent and the average ticket jumped 12.3 percent. Same-store sales in physical locations rose 4.2 percent during the last two months while Target’s digital revenues grew 102 percent.
Target gained market share in all five of its core merchandise categories during the 2020 holiday season with home and hardlines making the biggest gains.
The chain’s emphasis on becoming the easiest place to shop was evidenced in the growth of its same-day services, including Drive Up (up more than 500 percent) and Shipt (up more than 300 percent). Ninety-five percent of all Target’s sales were fulfilled by stores.
- Target Deal Days and New, Industry-Leading Holiday Price Match Guarantee – Target Corporation
- Will Americans finish this year’s Christmas shopping before Thanksgiving? – RetailWire
- Will overstocking get retailers through the holidays? – RetailWire
- Target Provides Update on Holiday Sales – Target Corporation
DISCUSSION QUESTIONS: What do you see as Target’s strengths heading into the holiday season? What are its greatest vulnerabilities?