Target Corp. issued a holiday sales performance update, including a 2% comparable sales gain, and announced a series of leadership changes made in part to boost the company’s technological and digital retailing capabilities.
Target reported Mark Schindele, executive vice president and chief stores officer, is retiring after 25 years with Target. Adrienne Costanzo, senior vice president, store operations, will take up Schindele’s role.
In other senior management moves, Brett Craig, executive vice president and chief information officer, is retiring after 15 years with Target. Prat Vemana, executive vice president, chief digital and product officer, will succeed him. Target has promoted Sarah Travis, senior vice president, Roundel and social commerce, to executive vice president and chief digital and revenue officer. Target pointed out her new role brings together the growing power of its e-commerce business with other revenue drivers, including Roundel in-house media and social commerce initiatives prompting consumers to shop the company on new platforms, as a means to support their mutual success and growth.
In the November/December holiday period, Target total sales grew 2.8% year over year, reflecting the 2% comp gain and record-high sales during the Black Friday and Cyber Monday promotional dates. A 3% increase in traffic drove sales, Target maintained, with gains across both stores and digital channels.
In the November/December period, Target digital sales grew almost 9%year over year, the company asserted, reflecting more than 30% growth in same-day delivery driven by Circle 360 membership program participants. Target reported it experienced almost 50% sales growth in Target Plus, its third-party marketplace.
Compared with third quarter activity, Target enjoyed a meaningful acceleration in discretionary categories during the holiday timeframe, led by apparel and toys, even as beauty and frequency categories such as everyday essentials remained strong, according to the company.
“Our team delivered continued traffic growth and better-than-expected holiday-season performance, thanks to their focus on serving guests with an inspiring, easy and joyous shopping experience,” said Brian Cornell, Target chair and chief executive officer. “With an unmatched combination of quality and value, on-trend assortments and a seamless shopping experience, our team continues to make Target a destination for consumers, both during important seasonal moments like the holidays and in the everyday moments in between.”
Target noted it now expects to post 1.5% fourth quarter comp growth versus the company’s earlier forecast of flat results and continues to expect fourth quarter GAAP and adjusted earnings per share of $1.85 to $2.45 and full-year GAAP and adjusted EPS of $8.30 to $8.90.
