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Target (TGT) Looks to Maximize Its Share of Customers' Wallet
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Target Corporation (TGT - Free Report) , one of the widely recognized names in the Retail – Discount Stores industry, has been making multiple changes to its business model to adapt and stay relevant in the ever-evolving retail landscape. The company, which is among the biggest winners amid the pandemic, has been deploying resources to enhance omni-channel capacities and adopt strategies to provide seamless shopping experience.
To accelerate industry-leading capabilities and gain consumer’s wallet share, the company plans to make an investment of about $4 billion annually during the next several years to ramp up store openings and remodels, scale up fulfillment services and enhance supply chain capabilities, keeping in mind speed and convenience. We note that the company had invested approximately $2.65 billion in fiscal 2020.
Shares of Target have surged about 38.4% in the past six months compared with the industry’s growth of 9.9%. Let’s focus on strategies that have positioned this Zacks Rank #1 (Strong Buy) company well amid a highly competitive retail landscape. You can see the complete list of today’s Zacks #1 Rank stocks here.
Making Shopping Convenient
A significant number of customers now prefer online mode of transaction. This has been stimulating demand for efficient delivery and pickup services. Target has been making constant efforts to improvise shopping methods and techniques through miscellaneous channels, and these have been yielding results. The company gained more than $1 billion in market share during first-quarter fiscal 2021, on top of $1 billion in share gains a year ago.
Markedly, same-day services (Order Pick Up, Drive Up and Shipt) grew more than 90% during the first quarter. Sales fulfilled by Shipt were up nearly 86% year over year, while sales through Drive-Up were up 123%. Order Pickup rose 52% in the quarter.
The company also plans to increase the number of fresh, refrigerated and frozen food items to Drive Up and Order Pickup nationwide. It has also informed that adult beverages will be available through pick-up and drive-up in more than 1,200 stores and for same-day delivery in more than 600 stores across the country.
Image Source: Zacks Investment Research
Focus on Brick-&-Mortar
Target continues to lay emphasis on developing flexible format stores to penetrate deeper into urban and suburban areas. It intends to ramp up store opening drive with plans to add 30-40 new outlets annually. Additionally, it plans to remodel roughly 150 stores in fiscal 2021, and more than 200 stores a year thereafter.
The company had previously highlighted its plan to open five sortation centers in fiscal 2021 to provide rapid deliveries to customers making online purchases. Moreover, it expects to open two distribution centers, one in Delaware and one in Chicago in fiscal 2021 with plans to open two more in fiscal 2022 to support the east and west coastal areas.
One-Stop Shopping Destination
Thanks to its one-stop shopping destination, customers opted Target amid the pandemic for its multi-category assortment of owned and exclusive brands as well as popular national brands. The company concluded fiscal 2020 with 10 owned brands generating annual sales of $1 billion or more, each. Of these, four brands crossed the $2 billion mark. Impressively, Target is always striving to build on its partnerships, especially with popular and high-profile brands like Apple, Ulta Beauty and Levi's.
Well, the retail giant has taken its long-drawn relationship with Apple to the next level. The company is doubling Apple’s footprint across select stores and online. It is also on track to introduce Ulta Beauty at its stores and online. Markedly, Ulta Beauty’s products will be featured through mini-store at more than a 100 Target stores.
Wrapping Up
Target’s well-chalked assortments, refurbished stores and growing digital capacity are likely to keep it in good stead in the days ahead. We note that the Zacks Consensus Estimate for its current financial year sales and earnings suggests growth of 9.1% and 25.6%, respectively, from the year-ago period.
Stocks to Consider
Burlington Stores (BURL - Free Report) has a trailing four-quarter earnings surprise of 74.7%, on average. The stock sports a Zacks Rank #1.
Dollar General (DG - Free Report) has a long-term earnings growth rate of 11.3%. It currently carries a Zacks Rank #2 (Buy).
Costco (COST - Free Report) has a long-term earnings growth rate of 9.1%. It presently carries a Zacks Rank #2.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Image: Bigstock
Target (TGT) Looks to Maximize Its Share of Customers' Wallet
Target Corporation (TGT - Free Report) , one of the widely recognized names in the Retail – Discount Stores industry, has been making multiple changes to its business model to adapt and stay relevant in the ever-evolving retail landscape. The company, which is among the biggest winners amid the pandemic, has been deploying resources to enhance omni-channel capacities and adopt strategies to provide seamless shopping experience.
To accelerate industry-leading capabilities and gain consumer’s wallet share, the company plans to make an investment of about $4 billion annually during the next several years to ramp up store openings and remodels, scale up fulfillment services and enhance supply chain capabilities, keeping in mind speed and convenience. We note that the company had invested approximately $2.65 billion in fiscal 2020.
Shares of Target have surged about 38.4% in the past six months compared with the industry’s growth of 9.9%. Let’s focus on strategies that have positioned this Zacks Rank #1 (Strong Buy) company well amid a highly competitive retail landscape. You can see the complete list of today’s Zacks #1 Rank stocks here.
Making Shopping Convenient
A significant number of customers now prefer online mode of transaction. This has been stimulating demand for efficient delivery and pickup services. Target has been making constant efforts to improvise shopping methods and techniques through miscellaneous channels, and these have been yielding results. The company gained more than $1 billion in market share during first-quarter fiscal 2021, on top of $1 billion in share gains a year ago.
Markedly, same-day services (Order Pick Up, Drive Up and Shipt) grew more than 90% during the first quarter. Sales fulfilled by Shipt were up nearly 86% year over year, while sales through Drive-Up were up 123%. Order Pickup rose 52% in the quarter.
The company also plans to increase the number of fresh, refrigerated and frozen food items to Drive Up and Order Pickup nationwide. It has also informed that adult beverages will be available through pick-up and drive-up in more than 1,200 stores and for same-day delivery in more than 600 stores across the country.
Focus on Brick-&-Mortar
Target continues to lay emphasis on developing flexible format stores to penetrate deeper into urban and suburban areas. It intends to ramp up store opening drive with plans to add 30-40 new outlets annually. Additionally, it plans to remodel roughly 150 stores in fiscal 2021, and more than 200 stores a year thereafter.
The company had previously highlighted its plan to open five sortation centers in fiscal 2021 to provide rapid deliveries to customers making online purchases. Moreover, it expects to open two distribution centers, one in Delaware and one in Chicago in fiscal 2021 with plans to open two more in fiscal 2022 to support the east and west coastal areas.
One-Stop Shopping Destination
Thanks to its one-stop shopping destination, customers opted Target amid the pandemic for its multi-category assortment of owned and exclusive brands as well as popular national brands. The company concluded fiscal 2020 with 10 owned brands generating annual sales of $1 billion or more, each. Of these, four brands crossed the $2 billion mark. Impressively, Target is always striving to build on its partnerships, especially with popular and high-profile brands like Apple, Ulta Beauty and Levi's.
Well, the retail giant has taken its long-drawn relationship with Apple to the next level. The company is doubling Apple’s footprint across select stores and online. It is also on track to introduce Ulta Beauty at its stores and online. Markedly, Ulta Beauty’s products will be featured through mini-store at more than a 100 Target stores.
Wrapping Up
Target’s well-chalked assortments, refurbished stores and growing digital capacity are likely to keep it in good stead in the days ahead. We note that the Zacks Consensus Estimate for its current financial year sales and earnings suggests growth of 9.1% and 25.6%, respectively, from the year-ago period.
Stocks to Consider
Burlington Stores (BURL - Free Report) has a trailing four-quarter earnings surprise of 74.7%, on average. The stock sports a Zacks Rank #1.
Dollar General (DG - Free Report) has a long-term earnings growth rate of 11.3%. It currently carries a Zacks Rank #2 (Buy).
Costco (COST - Free Report) has a long-term earnings growth rate of 9.1%. It presently carries a Zacks Rank #2.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>