Headquartered in Minneapolis, Minnesota, Target Corporation is among the top 10 retailers in the United States of America, with an FY2021 total revenue of nearly $106 billion.

Table of Content

Incisiv Digital Performance Rank About Target Corporation Financial Year 2021: Key Takeaways Current Quarterly Performance Digital Timeline
 

Incisiv Digital Performance Rank

Overall Rank: Leader
Research & Discovery: Leader
Online Ordering: Leader
Fulfillment: Leader
Service: Leader

 

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About Target

Headquartered in Minneapolis, Minnesota, Target Corporation is among the top 10 retailers in the United States of America, with an FY2021 total revenue of nearly $106 billion.

Number of U.S. Stores: 1,931

Number of Geographic Locations covered: All 50 states and the District of Columbia

Number of Supply Chain Facilities: 51 locations across 23 states

Number of Office Locations Globally: 28

Number of Owned Brands Unique to Target: 45+

 Source: About Target Corporation

 

Financial Year: Key Takeaways

2022
  • Target grew revenue by another $3.1 billion and saw additional traffic of 2.1% in 2022
  • Target's business strategy puts stores at the forefront of its flexible fulfillment approach, fulfilling more than 96% of total sales and offering guests convenience at a lower fulfillment cost
  • In-store sales have increased from $84.9 billion in 2021 to $87.6 billion in 2022
  • Digital sales have increased from $19.7 billion in 2021 to $20.0 billion in 2022
  • Target used the same-day fulfillment options of Order Pickup, Drive Up, and Delivery via Shipt to complete more than 50% of its digital sales
  • Target completely remodeled 140 stores and made investments in hundreds more through projects to improve the effectiveness of its same-day services
  • Target opened 23 additional stores, including one with a larger footprint, reimagined design components, and more stores in significant urban markets and on college campuses

Source: 2022 Earnings Call

2021
  • Target generated total revenue of nearly $106 billion in the financial year 2021. The rise in comparable sales drove up total revenue by 13.3 percent from the previous year
  • Traffic grew by 12.3%, resulting in a 12.7 percent rise in comparable sales
  • The $8.9 billion in operating profits was 36.8 percent greater than the equivalent prior-year period
  • The diluted earnings per share (GAAP) was $14.10
  • Earnings per share diluted after adjustments were $13.56
  • Target's strategy puts stores at the heart of its flexible fulfillment strategy, with stores completing over 95% of total transactions
  • Target's owned and exclusive brands accounted for over a third of revenues in 2021, which include:

Source: 2021 Target Annual Report

Current Quarterly Performance

 

Digital Timeline

2022
  • Digital sales have increased from $19.7 billion in 2021 to $20.0 billion in 2022
  • Target increased its digital fulfillment capabilities and supply chain capacity, adding six new sortation centers and one new distribution center, as well as finding ways to work more effectively and control its shipping costs
  • The company used the same-day fulfillment options of Order Pickup, Drive Up, and Delivery via Shipt to complete more than 50% of its digital sales
  • Target completely remodeled 140 stores and made investments in hundreds more through projects to improve the effectiveness of its same-day services
  • The user base has almost doubled since the introduction of Target Circle in 2019, and Circle now stands at the center of its increasingly connected loyalty system

Source: 2022 Earnings Call

2021
  • Target increased comparable sales by 12.7 percent in 2021, following record growth in 2020.
  • Target continued to outperform the industry in terms of digital growth, due to its distinctive ability to fulfill over 95 percent of all physical and digital sales from our stores
  • Target increased its digital fulfillment capabilities by expanding permanent storage space in over 200 high-volume stores, adding loads of new goods to the Order Pickup and Drive Up list, and more than doubling the amount of Drive Up parking stalls compared to last year
  • Over half of Target's digital sales in 2021 were fulfilled by same-day fulfillment alternatives such as Order Pickup, Shipt delivery, and Drive Up
2020
  • With an industry-leading digital comp of 145 percent and a store comp of over 7 percent, comparable sales increased by more than 19 percent this year
  • Target increased its online sales penetration by nearly 18 percent while maintaining its overall profitability
  • Target's digital fulfillment capabilities have been improved, with fresh and frozen F&B products now available for Order Pickup as well as Drive Up
  • Over half of comparable online sales growth in 2020 will be driven by same-day fulfillment alternatives such as Order Pickup, Shipt delivery,  and Drive Up
2019
  • Target has expanded its digital fulfillment capabilities, elevating the shopping experience and providing additional reasons for customers to spend at Target
  • Same-day fulfillment alternatives such as Drive-Up, Order Pickup, and delivery via Target's fully owned subsidiary, Shipt, which accounted for more than 70% of Target's comparable online sales growth in 2019
  • Sales through digital channels climbed by 29%, accounting for 1.9 percentage points of comparable sales growth
2018
  • Target's overall sales growth continues to be fueled by digital channels. In 2018, comparable online sales increased by 36 percent, marking the sixth year in a row that digital sales increased by more than 25%
  • Target's digital performance now generates more than $5 billion in yearly revenues, as well as fuels new growth throughout the company
  • Target will continue to invest in digital capabilities in the coming year, from artificial intelligence to virtual reality, that will enhance the shopping experience and provide customers new reasons to purchase at Target
2017
  • Beginning in 2017, Target committed to spending more than $7 billion during the next 3 years to improve and upscale its digital capabilities, establish over 100 tiny new format stores in key areas, redesign and reconfigure over 600 existing stores, enhance enterprise data and analytics capabilities, launch over a dozen major exclusive brands, and continue to reinvent its supply chain into a smart network that utilizes Target's natural competitive advantages
  • Target planned to blend the best of its digital and physical shopper experiences this year. Target implemented the new guest-facing tech in its shops, launched a mobile wallet, streamlined its main app, and spent on new capabilities in only a year to provide a user experience that makes purchasing on digital channels seem like shopping in-stores
  • Given that a Target store is within walking distance of almost every American home, Target took use of its closeness to fulfill digital purchases quicker and more effectively than ever before. Services like  Order Pick Up were enhanced, Drive Up was established, and a new option for next-day service for pantry goods was developed
  • Target purchased two technology platforms, Shipt and Grand Junction, in order to uncover unequaled same-day capabilities that reduce the "Last Mile" delivery gap from days to minutes while lowering costs
  • A 27 percent increase in comparable digital channel sales contributed 1.2 percentage points to comparable sales growth
2016
  • With a yearly growth of approximately 30 percent over the past two years, Target's online channel sales have regularly outperformed industry standards
  • A 27 percent increase in comparable digital channel sales contributed 1.0 percentage points to comparable sales growth
  • Target's online channels offer a broad selection of general merchandise, including plenty of items carried in stores, as well as a complimentary selection of sizes and colors available only online
  • Merchandise purchased through Target's digital platforms could be delivered to customers by common carriers from its distribution centers, vendors or third-party distributors, Target stores, or guest pick-up at Target stores
  • By using Target's stores as fulfillment points, customers could enjoy improved product availability and delivery times and reduced shipping costs
  • Target relies on third parties for a variety of services, including tech development and maintenance, online platforms and fulfillment processes, extensions of credit for the 5% REDcard Rewards loyalty program, and debit and credit card transaction processing, among others

Source: annual reports | Target Corporation

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Target’s Innovative Fulfillment Approach Leads to Unprecedented Growth

Target's business strategy puts stores at the forefront of its flexible fulfillment approach, fulfilling more than 96% of total sales. In-store sales have increased from $84.9 billion in 2021 to $87.6 billion in 2022. Digital sales have increased from $19.7 billion in 2021 to $20.0 billion in 2022.