What’s Behind the Success of Target’s Growth Rejuvenation?
Target (NYSE: TGT) recognizes the challenging retail environment and the choices available to the customer. To gain and retain shoppers, it must provide exceptional service with ever-increasing convenience. Gone are the days where it pays to place the milk in the farthest corner of the store to expose the consumer to more items in the hopes they make impulse purchases. Its stock is up 87.2% to $124.38 near its all-time-high of $126, significantly outpacing the S&P 500 growth of 24.4%
Target is bucking the downward trend in the retail industry, reporting growth in sales, profit, and foot traffic. In its Q3 earnings results, it reported comparable-store sales growth of 4.5%, earnings-per-share growth of 18.2%, and a traffic increase of 3.1%. The 4.5% growth in sales this quarter shows consistent and steady progress, compared to 5.1% growth last year. It is one of the few retailers, along with Walmart (NYSE: WMT), battling successfully with the Amazon effect and the retail apocalypse.
Image Source: Target
Source Fool.com
