The retailer said sales on Wednesday for at least one year grew 24.3% to $ 22.6 billion in May, June and July. That marked the strongest quarterly sales in Target’s history, sending the company’s profit up 80.3% to $ 1.7 billion last quarter.
Digital sales, including delivery and pickup of sidewalks, were a highlight for the company, with 195% in the quarter. Target said its stores fulfilled most of those online orders, instead of shipping from warehouses.
Target’s growth reflects how large box office chains flourished during the pandemic, despite store closures and bankruptcies affecting retailers, malls and others in the retail sector. Target was considered an “essential” retailer and remained open throughout the pandemic, offering groceries, household essentials, clothing, and other merchandise.
Walmart (WMT), which was also left open by the whole pandemic, said on Tuesday that sales at U.S. stores had increased by 9.3% in the last quarter for at least one year.
Home improvement chains have reported sharp revenue increases as consumers renovate their homes during the pandemic. Lowe’s (LEECH) said on Wednesday that sales at stores that opened at least a year ago rose 35.1%, while sales to Home Depot (HD) jumped 25%.
The pandemic has widened the gap between these big chains and smaller players in the retail industry, such as JCPenney (JCP)en Pier 1 (PIRRQ), who have filed for bankruptcy and are shuttering stores.
Tuesday, Kohl’s (KSS)said sales fell by 23% last quarter.
So far in 2020, more than 6,000 stores have said they will close permanently, according to Coresight Research, a retail research and consulting firm. It expects closures to snowball and set a new annual record of as many as 25,000 this year, breaking last year’s record of 9,302 closures by the company.
