Target's Digital Sales Rise 30 Percent

Share this content:

Web transactions accounted for one-fourth of comp sales increases, helped in part by an improved free shipping strategy.

Website sales account for 2.7% of total.
Website sales account for 2.7% of total.

Target yesterday announced better-than-anticipated results for its second quarter, including a 2.4% increase in comparable sales at stores open a year or more. What was more surprising was that the chain's digital sales rose by 30% and accounted for 0.6% of same store sales increases.

Pepsi veteran Brian Cornell, completing his first year as Target CEO, credited traffic growth and strong sales in his outlined signature categories of apparel, baby, and wellness. But the main reason for the huge increase in Web sales, according to one e-commerce expert, was a beefed-up shipping strategy.

“Target's merchandise has always been affordable and high-quality, but I think embracing free shipping and dropping the purchase threshold to $25 has had a big effect on digital sales,” says Clarus Commerce CEO Tom Caporaso, who operates FreeShipping.com. “Target is giving the consumer what they want, and what they want is free shipping.”

Web sales accounted for 2.7% of total Target sales of $17.4 billion for the three months ended August first. During the same period last year, digital accounted for 2.2%.

close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above