The coronavirus pandemic has widened the gap between winners and losers of retail, increasing the capacity of large U.S. chains that could remain open throughout the pandemic and feed America’s basic needs.
The evidence was strong this week when nationwide retailers revealed they were heading out the summer months in various directions. On Wednesday, Target Corp. reported. the strongest quarterly sales in its history, while Lowe’s Cos. ‘sales growth was the strongest in decades. Meanwhile, chains like Kohl’s Corp. and TJ Maxx who had to temporarily close their doors to sharp sales declines.
Like rival Walmart Inc., Target has benefited because coronavirus addresses the demand for services that allow buyers to pick up goods in parking lots or skip trips to the store. Both companies also sell groceries and other household items that have been in demand because Americans cook and clean more in their homes.
Target managers cited broad gains in categories such as food, electronics and household goods and a rebound in clothing sales in the quarter ended August 1. “In the current environment, each of our categories is performing very well,” said Chief Executive Brian Cornell in an interview with reporters.
Target’s online sales nearly tripled from a year ago. Walmart, which is a global retailer and much larger in revenue, said its U.S. e-commerce revenue nearly doubled in the last four years.
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