On the heels of our earlier data observation regarding the Q2 struggle faced by “non-essential” retail brands like Kohl’s, let’s look at how an “essential” big-box retailer like Target has thrived.
According to Retail Dive, “Target posted a blowout second quarter that included its best-ever comparable sales growth of 24.3%.” To have this level of success during the pandemic, which delivered one of the worst hits to the US economy since the 2008 recession, is impressive.
No doubt Target benefited from their designation as an essential retail store, which allowed them to remain open throughout the entirety of the pandemic. However, some states made it clear that the chain was not permitted to sell “non-essentials” during this time (Business Insider).
The company’s strongest channel in Q2 was their stores. But the company’s business strategy is also to thank — i.e., same day services, strong online presence, etc. This allowed the brand to benefit from the tremendous boom in online shopping (as shown in the data from CCINSIGHT) while still driving results in their brick-and-mortar stores.
Now that online retail revenue is starting to drop and stores are reopening, Target’s “essential” retail designation may no longer be as advantageous. Will the big-box retailer see equally impressive results in Q3?