While almost all fashion retailers are struggling with sales and offering substantial sales to get rid of stock, Target is showing a completely different picture with more than a 10% increase in sales.
Target’s new approach to focus on individual brands, has launched a couple of in-house apparel brands over the last three years. Such as ‘A New Day’ for women, ‘Auden’ for lingerie and Goodfellow & Co. for men. And notably attracted a lot of consumers at a time when others are struggling to sell clothes.
“I think our commitment to our new store operating model, where we have dedicated business owners in that apparel category is really driving great results,” said Brian Cornell, CEO, Target.
“The combination of the work we’ve done with our own brand assortment, adding some new national brands like Levi’s in select stores, the service that we’re delivering in-store, and the inspiration we’re creating online has really come together,” Brian Cornell added.
“The combination of the work we’ve done with our own brand assortment, adding some new national brands like Levi’s in select stores, the service that we’re delivering in-store, and the inspiration we’re creating online has really come together.”
Also, Target’s third-quarter results disclosed that its investments in new brands and faster delivery have been hitting the jackpot and earned an increase in the profit margin as fashion items have a better margin than other accessories.
It is notable that the majority of sales came from its stores. Recently it opened 30 new stores in urban areas and near college campuses.
“We’re moving into new neighborhoods and those were guests that were not shopping Target on a regular basis before. They are now,” Cornell said.
Most importantly, Target’s digital sales raised 31% in the quarter, with the majority coming from its in-store pickup, curbside and delivery through Shipt services. offering ‘buy online, pick up in-store’ for five years now, it still grew 50% in the quarter.
“The growth rate of all three of these services in 2019 has been nothing short of remarkable,” said John Mulligan, Target’s Chief Operating Officer.
Last year, Target generated a buzz with its ‘20th Anniversary Collection,’ which celebrated all of the designers the company has partnered with in the past. Shoppers came in numbers to Target to buy Lilly Pulitzer dresses, Missoni sweaters, Phillip Lim tops and Hunter accessories.