Target will top $18 billion in US ecommerce sales this year
Since 2019, its online sales have surged nearly 175%
Target’s recent ecommerce growth is nothing short of extraordinary. This year, its US ecommerce sales will reach $18.64 billion—almost as much as all its US ecommerce sales from 2016 to 2019 combined.
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The company’s omnichannel services are a key force behind this acceleration, and its same-day services, in particular, have played an integral role. During Target’s Q1 2021 earnings call, CEO Brian Cornell said more than 95% of the quarter’s sales—both online and offline—were driven by the brick-and-mortar stores.
Curbside pickup is another service that’s been a major driver of growth. As a share of digital sales, curbside pickup sales increased by more than 600% in Q1 compared with the same quarter in 2019, according to the earnings call. The company said it would continue to invest and expand on this service.
Overall, the retailer is constantly looking for ways to not only bolster sales, but also make the shopping experience more convenient for its customers. Recently, Target announced plans to make adult beverages available through its pickup options at more than 1,200 of its stores by the end of Q2. Adult beverages will also be available for same-day delivery in over 600 stores across the country where local laws allow.
“Adult beverages are one of the fastest-growing online categories for the company,” said Cindy Liu, eMarketer director of forecasting at Insider Intelligence. “Offering alcohol through these services is a natural next step for Target, since it’s clear that its customers love the convenience of curbside pickup and same-day delivery. This also brings Target’s services up to par with those of Walmart, which has offered curbside alcohol pickup since 2019.”
With its online sales growing 12.5% in 2021, Target will climb the rankings to claim the No. 6 spot in our top 10 US etailers list.
“In 2019, Target barely cracked the top 10,” Liu said. “Its growth over the past year is remarkable and further proof that its store-based fulfillment model is working.”