Target gives a reason for shoppers to return

Shoppers are back to Target. In addition to largescale investments in technology and a 32 per cent increase in online sales, the big-box retailers said it’s also seeing more customers shopping the old-fashioned way. As a result, second-quarter sales grew 1.6 per cent, marking the first increase in more than a year.

“Second-quarter traffic was much stronger than our expectations, and the strength was broad-based: across the country, across categories and across channels,” Brian Cornell, Target’s chief executive, said. “The positive response from our guests shows we’re making progress.” heading

Private-label brands

Analysts attributed that growth to Target’s success with private-label brands such as the children’s line Cat & Jack, which Cornell said has racked up $2 billion (Dh7.3 billion) in sales in one year, and a partnership with Victoria Beckham. Target is taking note: The company is introducing 12 more brands in the next 18 months, and recently announced a partnership with mattress start-up Casper. “Exclusive new brands like Cat & Jack in kids clothing, Pillowfort in homewares, and Cloud Island in baby have all performed well,” Neil Saunders, managing director at GlobalData, said.

The big-box retailer announced it was buying sameday delivery company Grand Junction as part of its efforts to take on Amazon.com and Walmart. Target is testing same-day delivery services in New York and has begun looking into curb-side fulfilment options near its headquarters. “Grand Junction’s technology and algorithms will help Target deliver to guests faster and more efficiently,” Arthur Valdez, chief supply chain and logistics officer for Target, said. Target is also opening 30 new smallformat stores this year.