Target Corporation ( TGT Quick Quote 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. To gain consumer’s wallet share this holiday season, the company has been deploying resources to enhance omni-channel capacities and adopt strategies to provide a seamless shopping experience. Let’s take a look at how Target is preparing for the upcoming festive season. 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 improve shopping methods and techniques through miscellaneous channels, and these have been yielding results.
Target's contactless Drive Up and Order Pickup services, and same-day delivery with Shipt will play crucial roles in getting products delivered to customers conveniently. Shoppers can even join the retailer's free loyalty program, Target Circle, and maximize savings on every purchase they make during the holiday season. We note that same-day services (Order Pick Up, Drive Up and Shipt) grew approximately 55% during the second quarter of fiscal 2021. Sales fulfilled by Shipt were up nearly 20% year over year and sales through Drive-Up were up more than 80% during the quarter. We note that Order Pickup rose more than 30%.
Image Source: Zacks Investment Research Holiday Season Preps Include More Working Hours
The retail biggie plans to provide five million more working hours to its existing store employees, which will result in an increase in pay by more than $75 million. The company will provide greater flexibility to workers in terms of choosing or swapping their shifts through a mobile scheduling app.
Target’s plans to invest more in its existing workforce this festive season looks prudent as it tries to get around the issue of industry-wide labor shortages. The company will provide its current members the opportunity to work additional hours if they are interested. They can avail scheduling preferences based on their choices. The company has also been offering back-up training options to its team members for nearly a year to support demand in areas like Order Pickup and Drive Up. The training has helped employees to work an additional four to eight hours a week. Throughout the holiday season, the company will continue to have dedicated front-of-store team members focused on safety and cleaning precautions. Target expects to meet the seasonal rise in demand by providing efficient same-day delivery services. The company also unveiled plans to hire 100,000 seasonal workers to support its current team. Great Deals, Best Values
Target will kick-off holiday deals earlier this year, featuring thousands of items across every category. The company’s “Deal Days” shopping event will offer steep discounts across the entire range of merchandise, including TVs, Beats headphones, fleece, video games, vacuums, kitchen appliances, food and beverage offerings, and more. Interested customers can access all these amazing deals from Oct 10 to Oct 12.
This time bargain hunters will find best deals and values not only on Target’s app or website but also at more than 1,900 outlets across the country. To woo customers, the company is offering “Holiday Price Match Guarantee” starting Oct 10. The program, which will run through Dec 24, is designed to give shoppers a sense of confidence that they are getting the best deals, regardless of when they shop. Wrapping Up
Thanks to its one-stop shopping destination, customers have been opting for Target for its multi-category assortment of owned and exclusive brands as well as popular national brands. With convenient shopping options and shop-in-shops with popular brands like Disney, Ulta Beauty and Apple, Target is providing customers more reasons to shop.
Shares of this Zacks Rank #3 (Hold) company have surged about 29.3% year to date compared with the industry’s growth of 11.2%. Stocks to Consider The Buckle ( BKE Quick Quote BKE - Free Report) has a trailing four-quarter earnings surprise of 42.1%, on average. It presently sports a Zacks Rank #1 (Strong Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here The TJX Companies ( TJX Quick Quote TJX - Free Report) has a long-term earnings growth rate of 10.5%. It currently flaunts a Zacks Rank #1. Costco ( COST Quick Quote COST - Free Report) has a long-term earnings growth rate of 8.6%. It presently carries a Zacks Rank #2 (Buy).