Target’s Omnichannel Focus Pays Off Over Holiday Period

Thanks to increasing demand for blended shopping styles, Target saw major growth in digital and click and ship sales this holiday season.

Need to Know

  • Despite slow same-store sales growth, Target reports that digital sales have increased by 19%. 
  • On December 24th the retail giant prepared nearly five times the number of e-commerce curbside pickup orders compared to stats from a year ago.
  • The National Retail Federation reports that online sales this holiday season were up 14.6%. 

Analysis

With digital sales surging and more shoppers opting for curbside pickup, Target’s recent holiday sales reports prove that the retailer’s efforts to improve the digital customer shopping experience are paying off. 

Target’s same-store sales over November and December were only 1.4% higher than the previous year, a sluggish increase during the busiest shopping time of the year. The big story this holiday season, however, is the shift in customer behavior. Customers want to shop digitally. 

The retail giant reported a 19% increase in digital sales, noting that the use of its same-day services grew over 50% during November and December in comparison to 2018. 

Predicting the trend, the retailer recently accelerated its omnichannel approach and beefed up its same-day fulfillment services with numerous in-store pick-up options. Target’s click and collect services saw huge boosts this holiday season. 

On Christmas Eve alone, Target employees prepared nearly five times the number of products for curbside pickup of e-commerce orders compared with a year ago. The company also noted that purchases from customers opting to use either buy click and ship, curbside pickup or same-day delivery this November and December were up more than 50%.

Target has a current market value of approximately $63.6 billion.