Target digital sales jump 34%

Target (NYSE:TGT) is defying the sales slump experienced by many competitors, posting positive year-end sales including a 34 percent increase through the digital channel.

Same-store sales grew 1.9 percent in the fourth quarter, although total quarterly sales were down somewhat from $21.8 billion to $21.6 billion, due in part to the sale of its pharmacy business to CVS.

Competitor Walmart posted same-store sales gains of just 0.6 percent and more importantly, digital sales growth of just 8 percent. Target's digital sales gain of 34 percent was a big improvement over the 20 percent digital growth posted in the third quarter.

As part of its turnaround plan, Target identified key categories for investment. Those key categories are now paying off, growing more than three times faster then the company average.

"With traffic growing for five consecutive quarters and our signature categories of Style, Baby, Kids and Wellness leading our growth, Target's results demonstrate that we are focused on the right strategic priorities," said Chairman and CEO Brian Cornell. "While we have made a great deal of progress in 2015, we are excited about the opportunity in front of us to provide a more seamless experience and accelerate profitable growth."

Target will continue to invest in these signature categories and digital solutions. Recent initiatives meant to further the programs include a partnership with SoulCycle and continued investment in its small-store initiative.

For more:
-See this Target financial release
-See this Star Tribune story

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