Target revenues rocket due to e-commerce

In its 2020 financial year, US omnichannel giant Target saw sales rocket by 19.8% to $92.4 billion, a large part driven by grocery pickup and delivery sales growing by 235%.

“The strength of Target’s unique, multi-category assortment is a key competitive advantage, and the investments we’ve made across food and beverage drove strong growth in the category, as we posted nearly $9 billion in market share gains across the breadth of our business in 2020,” said Chairman and CEO Brian Cornell. “As guests continue to turn to Target for their food and beverage needs, our teams throughout Target’s stores, supply chain and headquarters are bringing our purpose and strategy to life, helping families discover the joy of food every day.”

The retail giant has been using its stores as fulfilment hubs for around five years, and was perfectly placed for the rocketing demand for click and collect and food delivery when the pandemic hit in 2020.

“We don’t see our business as brick-and-mortar and then e-commerce. We think of Target as an omnichannel retailer, and our stores play a critical role in that strategy,” added Rick Gomez, executive vice president and chief food and beverage officer at Target. “Our stores offer a clean, safe, easy, differentiated experience. But over 90% of our e-commerce orders are fulfilled by our stores. So our stores really serve as a hub for our e-commerce business. And I think that’s a unique approach, to leverage our stores in a way that creates a great in-store shopping experience but also a great digital experience.”