This has been a good year for Target, who recently confirmed their move to West Ellicott.
The Minneapolis-based company said on Wednesday that its third-quarter profits rose nearly 47%, while sales rose 13.2%, beating expectations.
Comparable sales increased 12.7% in the third quarter, reflecting same store sales growth of 9.7% and digital comparable sales growth of 29%. Total revenue of $ 25.7 billion increased 13.3% from last year, driven by total sales growth of 13.2% and a 22.3% increase in other income. Operating profit was $ 2 billion in the third quarter of 2021, up 3.9% from $ 1.9 billion in 2020.
These findings have led Target officials to continue expanding at a time when some retailers are simply trying to keep their business going during the pandemic and shipping challenges of 2021.
John Mulligan, COO of Target, recently told investor analysts that Target had renovated 145 of its stores in 2021, completing 40 renovations in the third quarter of the year alone. Another 100 more renovations are expected to be completed before Christmas. Target also opened 15 new stores in the third quarter of 2021, bringing the year’s total to 30.
Target has set its sights on older Kmart sites this year. In early 2021, the parent company of Kmart and Sears ceded five Kmart store leases to Target for properties in North Carolina, Wyoming, California, New Jersey and Maine. It was announced earlier this year that another former Kmart building in Lebanon County, Pa., Will also house a target. And, in November, it was learned that the old Kmart site in West Ellicott will, at some point, be home to a target.
“Among these projects, we opened new stores ranging from 11,000 to 160,000 square feet, demonstrating the flexibility we have developed to design the optimal store size for an individual neighborhood based on their local needs and l real estate available on the market, “ Mulligan said. “To increase the capacity and efficiency of our supply chain, our team also opened two new distribution centers this year. In addition, we have two new sorting centers which are expected to open in the fourth quarter and two more are expected to open early next year. While our supply chain has had to overcome a multitude of unique challenges. I would also like to acknowledge the tireless work of our construction team, which has enabled them to complete a large number of store and distribution projects this year.
Target’s third quarter operating profit margin was 7.8% in 2021, up from 8.5% in 2020, while third quarter gross margin rate was 28%, down from 30.6% in 2020. Company officials said the gross margin rate reflects pressure from increasing freight and freight. costs, increased inventory reduction and increased supply chain costs due to increased compensation and headcount at Target’s distribution centers.
“While growth came from all categories, the third quarter performance was led by our essentials, beauty and food and beverage categories, all of which experienced growth in composition in the middle of the market. adolescence “, said Christina Hennington, Director of Growth at Target. “These companies continue to post substantial market share gains on top of last year’s gains, driven by both frequency of travel and basket growth. Most of the growth was led by the Baby Care, Pet Care and Over-the-Counter Health Care categories. Strength in food and beverages was most noticeable in our fresh and frozen product categories, as well as in snacks and candy. … The performance was strongest in swimming, contemporary youth, underwear and hosiery. At home, weak double-digit roster growth was led by the seasonal and stationary categories and reflected record performances during the back-to-school, back-to-school and Halloween seasons. We have seen consistently strong results across all seasonal categories – results that clearly indicate that our customers are excited to celebrate the holidays with loved ones, in new, old and reinvented ways. “
Sales at stores open at least a year ago increased 9.7% in the three-month period ended Oct. 30. This comes on top of 9.9% growth over the same period of 2020. Target saw double-digit sales growth in its five key commodity categories, including food and clothing.
Comparable online sales have jumped 29% from a 155% increase a year ago before COVID-19 vaccines became available and many Americans moved away from indoor spaces. Some changes created by the pandemic in 2020 are now part of Target’s plan for 2021, Hennington said.
“Last year, we spread our promotions throughout November and December to avoid crowds in the stores, and our customers told us they loved it. Hennington said.