Target surges on same-day service

Credit: Reuters Studio
Published on August 21, 2019 - Duration: 01:11s

Target surges on same-day service

Target shares jumped over 18% to a record high after reporting surging profit, revenue, and same-store sales.

As Fred Katayama reports, its investments in faster deliveries are paying off, attracting new customers and beefing up digital sales.

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Target surges on same-day service

A blowout quarter from Target reflecting the resilience of the American consumer.

The discount retailer's profit expanded 17% as it grew its margins, revenue, same-store sales and store traffic.

Helping lift same-store sales: faster fulfillment.

Target has expanded its same-day services that allow shoppers to pull into a store and pick-up their orders that they placed just minutes ago using the Target mobile app or website.

One of every five shoppers using those same-day services were new customers.

What's more, those faster services beefed up digital sales 34%.

Target has also been sprucing up its stores and opening smaller locations in college towns and urban areas to reach a wider audience.

And it keeps adding private label brands like the grocery brand it announced this week called Good & Gather.

Target raised its full-year profit forecast just as archrival Walmart did last week.

That allays concerns about consumer demand AS SOME WORRY ABOUT THE IMPACT OF ANOTHER ROUND OF tariffs on Chinese imports COMING NEXT MONTH and concerns of slowing economic growth.

TARGET SHARES SHOT up more than 18% in early Wednesday trading.

The Stock is up over 50% this year.

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