Target reports historic second quarter 2020 earnings, including 700% increase in drive-up service
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MINNEAPOLIS (FOX 9) - Despite an economic decline in the U.S. from a global pandemic, Target announced Wednesday morning that its second quarter results were strong, reflecting the continuation of heightened sales volume and significant investments in response to COVID-19.
Target had record-setting growth this quarter, reporting a 24.3% increase in comparable sales. Store comparable sales increased 10.9%. Digital comparable sales grew 195%, accounting for 13.4% of Target’s comparable sales growth.
"Our second quarter comparable sales growth of 24.3 percent is the strongest we have ever reported, which is a true testament to the resilience of our team and the durability of our business model," said Brian Cornell, chairman and chief executive officer of Target Corporation.
A large factor in the successful quarter lies in Target’s digital growth with stores powering more than 90% of Q2 sales growth. Same-day services grew 273%. It includes an increase of more than 700% in drive-up services, 350% in year-over-year Target sales fulfilled by Shipt, and 60% in in-store pickup sales.
“We remain steadfast in our focus on investing in a safe and convenient shopping experience for our guests, and their trust has resulted in market share gains of $5 billion in the first six months of the year,” Cornell said.
The company saw unusually strong market-share gains across all five of its core merchandise categories. As many families transitioned to working, learning and playing from home, Target saw a 70% growth in electronics sales and 30% increase in home sales.
“With our differentiated merchandising assortment, a comprehensive set of convenient fulfillment options, a strong balance sheet, and our deeply dedicated team, we are well-equipped to navigate the ongoing challenges of the pandemic, and continue to grow profitably in the years ahead.”