Target's second quarter revenue exceeds $25 billion! Grocery business performance is very impressive!

It is learned that on August 18, Target announced its second quarter financial report and achieved remarkable results. The following is a summary of the second quarter financial report:

• Revenue for the quarter rose 9.5% to $25.16 billion from $22.98 billion in the same period last year, slightly above analysts' expectations of $25.08 billion.

• Net income was $1.82 billion, compared with $1.69 billion in the same period last year.

• E-commerce accounted for 17% of sales in the second quarter. Digital product sales increased by 10%. In comparison, composite sales in the second quarter of 2020 increased by 24.3%, with digital sales surging by 195%.

• The number of transactions increased 12.7%, and comparable sales increased 8.9% in the second quarter.

• Average transaction value fell 3.4% this year after rising 18.8% in the same period last year as consumers stockpiled essentials during the peak of the pandemic.

• Total second-quarter sales have increased more than 36%, or more than $6.6 billion, over the past two years.

• In terms of services, sales of Drive Up (curbside pickup) increased by more than 80%, sales of Order Pick Up (in-store pickup) increased by more than 30%, and sales of Shipt (on-demand delivery) increased by about 20%. Sales of same-day services increased by 270% over the same period last year, and a compound sales increase of 55% was achieved in the second quarter on this basis. Sales through Drive Up alone increased by nearly $1.4 billion in the second quarter.

Target CEO Fiddelke said that in the past four years, more than half of the stores have been renovated, two new distribution centers have been opened, and 5,000 products have been added to the inventory to meet the needs of curbside pickup. In addition, four more "sorting centers" will be opened at the end of 2021 and the beginning of 2022 to meet the rising demand for groceries and speed up grocery delivery services.

It is learned that Target opened its first mini beauty space Ulta Beauty earlier this month. It also launched an exclusive pet food brand Kindfull. It will also launch a fall designer clothing series and will cooperate with children's book illustrator and author Christian Robinson to develop a colorful children's home products series.

Aware of port delays, increased shipping costs and other transportation constraints, Target added $2.5 billion in inventory in the second quarter compared to the same period last year to meet the upcoming "holiday sales season" purchasing needs.

Target said sales increased in every product category, from clothing to groceries. Apparel sales increased by more than double digits, with the highest demand for teen apparel. This was followed by food and beverages (low double-digit growth), necessities and beauty products (high single digits) and home products (low single digits).

Editor ✎ Estella /

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