The retailer advantages from a one-stop resolution.
Brian Cornell, CEO of Target, said customers might come into their store with a short shopping list or specific item, but they fill their baskets and leave with lots of purchases.
“We’re seeing a guest who is shopping all of our categories and using our one-stop solution,” Cornell said in an interview on CNBC’s Squawk Box on Wednesday. The retailer had previously reported third-quarter earnings that significantly exceeded analytes’ estimates.
Target’s diverse range has gained added importance as shoppers restrict the number of trips during the coronavirus pandemic, Cornell said. The average ticket increased 15.6% year over year in the quarter.
“We see a lot of families coming to pick up a new Barbie or something for their kids – a Lego item,” he said. “But while they’re there, they buy Microsoft items or Apple. Even during the pandemic, kids are growing out of their clothes, so guests come over for Cat & Jack, but while they’re there, they discovered that we were Levi’s Red Tab.” available for them and their families. They also visit food and drink and discover our Good & Gather brand. “
In the third quarter, Target announced that sales on the Internet and in stores open for at least a year were up 20.7% year over year. Comparable digital sales rose 155% while sales in the same store rose 9.9%.
Target has seen shoppers visit more often and put more in their baskets. Combined transactions in the Target stores and on their website increased 4.5% year over year, while the average ticket increased 15.6% for the quarter.
So far this year, the company announced it had gained $ 6 billion in market share, with stock gains of $ 1 billion in the most recent quarter.
Instead of naming retailers who are stealing market share, Cornell would point to the company’s numbers, which say they are “very cheap compared to our competitors.”
“It was broad-based,” he said. “We are gaining shares from our traditional competitors as well as from specialist competitors.”
And, he said, Target’s recent deal with Ulta Beauty will entice customers to spend more and more visits to its stores and website when they do. Next year, a smaller version of Ulta will open in over 100 Target stores with a curated mix of beauty items from lip gloss to perfume. The beauty articles will also be available online.
He said beauty “is a great category that combines style and frequency in our business.”
He added, “It’s just one more way for us to improve the experience and bring a new partner into our Target stores and on Target.com.”