Add Target & These 4 Retail Stocks For Superb Returns
Zacks Investment Research | Jun 24, 2019 09:43PM ET
In the changing retail landscape, Target Corporation (NYSE:TGT) has been able to create a niche for itself on the back of growth strategies, better price management and strides taken in delivery business. The company’s initiatives such as the development of omni-channel capacities, diversification and localization of assortments along with emphasis on flexible format stores and expansion of same-day delivery options are playing a crucial role in generating higher sales.
Robust traffic, favorable store comps and surge in comparable digital sales are clearly aiding results. Comparable sales rose 4.8% in the first quarter of fiscal 2019. Meanwhile, comparable digital channel sales surged 42% and added 2.1 percentage points to comparable sales. Management envisions both second quarter and fiscal 2019 comparable sales to increase in low-to-mid-single digit range.
The company has rolled out Target Restock program that enable customers to restock their shipping box with essential items online and get them delivered at their doorstep by the next business day for a nominal charge. Further, the company made significant headway in the same-day delivery race by acquiring Internet-based grocery delivery service, Shipt, to provide same-day delivery of groceries, essentials, home, electronics, toys and other products.
Shipt operates in more than 1,500 outlets in more than 200 markets. Per media reports, online shoppers can now get items delivered on the same day by paying a fee of $9.99 per order.
Buoyed by above-mentioned reasons, shares of this general merchandise retailer has surged 31.2% so far this year, comfortably outpacing the Original post
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