Will Target customers treat October 10 like Black Friday? – RetailWire
Sep 30, 2021
Target announcement yesterday that it will launch its Christmas promotions on Sunday 10 October. The retailer is looking to capitalize on the opportunity created by previous buying trends this year, as supply chain disruptions and product shortages have become a daily issue.
The retailer’s Target Deal Days promotion will run for three days with big savings promised on thousands of items across the chain’s 1,900 stores, online and through its mobile app. This will be the first time that Target will make all of its offers available at all points of sale for its customers.
“Customers are excited to shop early, and our team is ready to help them prepare so they can celebrate what matters most – spending time with family and friends,” said Christina hennington, Executive Vice President and Chief Growth Officer, Target.
A study by AlixPartners found that 53% of consumers plan to start their holiday shopping before Halloween this year, a 4% increase from last year. RetailMeNot found that 59% of shoppers expect to start shopping for Christmas before the end of October.
Target multiplies the savings in a year of steadily rising prices. The retailer is issuing a holiday price match guarantee to “give customers the confidence that they are getting the best deals at Target, no matter when they choose to shop,” Hennington said.
Target has been one of the shining lights of the industry since the start of the pandemic. COO John Mulligan told analysts on the company’s earnings call last month that he had taken steps to bolster its inventory of merchandise and was “in the right place” to boost sales for Christmas 2021 from its record performance last year.
Chain comparable sales in November and December 2020, they increased by 17.2%, with traffic increasing 4.3% and the average ticket surging 12.3%. Comparable store sales in physical locations grew 4.2% in the past two months, while Target’s digital revenue grew 102%.
Target gained market share in its top five merchandise categories during the 2020 holiday season, with home and hardlines making the biggest gains.
The chain’s focus on being the easiest place to shop was manifested in the growth of its same-day services, including Drive Up (up over 500%) and Shipt (up more than 300%). Ninety-five percent of all of Target’s sales were made through stores.
DISCUSSION QUESTIONS: What do you think are Target’s strengths as the holiday season approaches? What are its biggest vulnerabilities?
“Target will continue to benefit from the deep customer confidence they have built up over the past two years.”