Target’s Store Focus = Almost the Anti-Amazon
Target is setting itself up to be almost the Anti-Amazon. Stores-focused but more ecommerce savvy than Walmart.
I listened to a long interview that CNBC had for an update on Target's performance.
A few key stats:
Stores drive 80% of orders fulfilled digitally. This is a great stat and very unique in the industry overall. They put the order in your trunk when you drive up, or deliver it to your home, but it's coming from the store, not a distribution center.
April 2020 is comping 275% ahead of April 2019 for digital growth. Every day is like twice the Cyber Monday peaks.
They are benefiting significantly from having a multi-category portfolio. While not many people are buying apparel right now (with exceptions), essentials are on fire.
Same-Store-Sales were up 7% y/y Quarter to date.
What most people don't remember is that TGT growth in new stores the last couple of years has been ALL small-format. Less than 40k square feet. Close to consumer, easier to staff, less inventory.
Obviously, this is an unprecedented quarter but Target is looking super-smart for investing in its store fulfillment network. Writing a playbook for new retail.
