It’s no secret that amongst retail shoppers, Target is a favorite. Statistics don’t lie and statistics have shown that second quarter sales grew 1.6 percent. This marks their first increase in over a year. “Why Target?” Many may be asking. Although they did see a 32 percent increase in online sales, it isn’t just their large scale investments in technology. The retail powerhouse has even seen a rise when it comes to in store shoppers.
They are making definite progress. While on a call Wednesday with analyst, Target’s chief executive, Brian Cornell was quoted saying “Second-Quarter traffic was much stronger than our expectations, and the strength was broad-based – across the country, across categories and across channels. The positive response from our guests shows we’re making progress.”
Private label brands are what pushed Target’s success, at least according to analyst. For example, the children’s line Cat & Jack racked up 2 billion dollars in sales last year. Another big money maker came in the form of their partnership with Victoria Beckham. They see where their success is and will steadily keep pushing down that path. The company announced that in the next 18 months they’ll be introducing 18 new brands as well as partnering up with Casper, a mattress company. There is no doubt that it is these unique partnerships and brands that make them stand out amongst the other retail giants.
The news doesn’t end there though. In an effort to squash their competition, Target has purchased same-day delivering company, Grand Junction. This puts them ahead of companies like Walmart and Amazon. They made this purchase in order to appear like the more reliable and efficient company in the eyes of their shoppers.
This coming year they hope to open thirty new stores, but not the Targets that we’re used to. These new stores will be smaller and aimed at being placed near colleges and urban areas. For Target it’s all about the long term strategy and being at the top as we enter this new era of retail.