Target’s Online Sales Surge As Customers Shop From Home During Coronavirus Pandemic

Target’s (TGT) online sales are surging during the coronavirus pandemic. The retailer saw a sales increase of 275% online as shoppers look to buy products without having to enter stores during the coronavirus pandemic.

The increase in online orders, gave Target a 100% growth in its digital category while comparable sales grew by 7% as its essential and food and beverage categories were up 20%. The company also saw hardlines sales increase by 16% with home purchases slightly up and apparel and accessories orders down by 20%.

Late in March, Target saw an increase in traffic and comparable sales in stores and online as consumers began stockpiling essentials as fears mounted because of the COVID-19 pandemic. By mid-March, those numbers rose further as essentials, and food and beverages became in high demand for shoppers.

As shelter-in-place orders were enacted in states across the country, sales softened while the company’s digital sales accelerated dramatically. April saw sales similar to late March with increases of more than 5%, beginning on April 15.

“Our strategy was built to be durable and sustainable in any environment and its strength is driving our business in the face of marked shifts in shopping behaviors caused by COVID-19,” Brian Cornell, chairman and CEO of Target Corporation, said in a statement. “Because of our strong business model, we are able to make considerable investments to support our team, put protections in place, and adjust to serve our guests who are being advised to shelter in place and avoid stores.

“As a result, we are seeing record-setting digital growth, strong demand for our same-day fulfillment services and broad market-share gains across each of our core categories. While this crisis will certainly put near-term pressure on our profitability, that pressure is far outweighed by doing right by our team and our guests. We’re confident the actions we’re taking today will drive growth and greater guest affinity over the long-term,” Cornell added.

Going forward, Target expects its Q1 earnings to be down by more than 5% as it invests more funding into pay and benefits for its workers during the COVID-19 crisis.

Shares of Target stock were down 1.57% as of 11:00 a.m. EDT on Thursday.