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Target CEO Brian Cornell said customers can come to his store with a short shopping list or a particular item in mind, but fill their baskets and walk away with lots of purchases.
“We’re seeing a guest buying all of our categories, taking advantage of our one-stop solution,” Cornell said in an interview on CNBC’s “Squawk Box” on Wednesday. Previously, the retailer had reported third-quarter profits that significantly exceeded analysts’ estimates.
Target’s diverse assortment has grown in importance as shoppers limit travel during the coronavirus pandemic, Cornell said.
“We see a lot of families coming to get us a new Barbie or something for their children – a Lego item,” he says. “But while they’re there they’re buying Microsoft or Apple items. Even during the pandemic kids are getting too big for their clothes, so guests come to us for Cat & Jack, but while they’re there they found out that we have Levi’s Red Tab for them and their families. They also visit food and drink and learn about our Good & Gather brand. “
In the third quarter, Target said online sales and in stores open at least one year were up 20.7% from the previous year. Digital comparable sales increased 155%, while same store sales increased 9.9%.
Target has found that shoppers visit more frequently and put more in their carts. Combined transactions at Target stores and its website were up 4.5% year-over-year, while the average ticket increased 15.6% in the quarter.
So far this year, the company has said it has gained $ 6 billion in market share, with $ 1 billion in stock gains in the most recent quarter.
Cornell did not name the retailers from which it is taking market share, but pointed to the company’s numbers, saying that they “compare very favorably to our peers.”
“He has a wide base,” he said. “We are taking shares from our traditional competitors as well as from our specialist competitors.”
And, he said, Target’s recent deal with Ulta Beauty will inspire customers to visit its stores and website more and spend more when they do. Next year, a smaller version of Ultra will open in over 100 Target stores with a selection of beauty items, from lip gloss to perfume. Beauty items will also be available online.
He said that beauty “is a big category that combines style and frequency in our business.”
He added, “It’s just another way for us to enhance the experience and bring an iconic new partner to our Target and Target.com stores.”
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