Monday, January 29, 2018

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Target leveraged stores to raise its online game

(AP Photo/Nati Harnik, File) Target leveraged its stores as delivery centers, helping to boost sales during the critical holiday advantages and disadvantages of online shopping period. The Minneapolis-based retailer said Tuesday that sales at stores open at least a year jumped 3.4 percent in November and December, with heavy traffic on the company's website and in stores. Target stores played a part in 70 percent of online volume during the last two months of the year, accounting for about 80 percent of the company's same-store sales growth. The stores were used to either ship online orders or as a pickup point for customers who ordered online. Chairman and CEO Brian Cornell said Target's stores are at the center of the company's strategy to make shopping more effortless for customers, and Target was pleased with its holiday season performance. The company, also citing recently enacted federal tax changes, raised its quarterly and 2017 profit expectations, sending shares up nearly 3 percent to $69.03 on Tuesday. Kohl's, Macy's and J.C. Penney have all reported strong holiday sales as consumers have spent more freely than in past years following the recession . The Federal Reserve said this week that consumer borrowing jumped 8.8 percent in November, the largest spike in more than two years, with confidence in the U.S. economy growing steadily.

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