Is there anything Target (NYSE: TGT) can’t do?

The company’s sales increased by 10%, with online sales increasing by 31% in the third quarter. Though some people believe traditional retail is dead, Target proves it’s alive and well as long as you invest in your stores and inspire consumers. As of February 2, 2019, the company operated 1,844 stores in the United States. The popular company has come a long way since its founding in Minneapolis, Minnesota in 1902. Target has become one of the largest and most popular discount retailers in the U.S. and the third-largest in the world.

The company has been able to morph itself and its stores into exactly what consumers want and need. And it has become a one-stop-shop thanks to the addition of groceries in its stores about 15–20 years ago. 

At that time, Target stores with groceries were called “Super Targets.” Eventually, almost all its stores sold groceries. It’s given consumers the luxury of going to just one store for everything on their to-do list, a place where they can buy clothes, household items, health and beauty essentials, entertainment, food, and more in one place. 

———————————————Sponsored Link—————————————————

Man Who Called NVIDIA Rise Makes New 5G Prediction 

Jeff Brown, one of Silicon Valley’s top Angel Investors, holds live event off-campus of Yale University for an exclusive audience to reveal new “5G Device” that will go from $0 to $100 billion – as soon as this year. Click here to watch now.

—————————————————————————————————————-

If I need to run errands, Target is the first place I think of because I know I’ll be able to pick up almost everything on my list — and then some. It’s quick and convenient. Having a variety of items for everyone all located under one roof allows consumers to shop around and buy more, especially when the items are offered at a mid to low price point. Dollar-savvy people (probably the majority of consumers nowadays) are looking for the best deal on eye-catching items.

Target has also managed to gain partnerships with many popular brands over the years, keeping the company relevant to today’s generations.

The company has done a good job of keeping up with its top competitors Amazon (NYSE: AMZN) and Walmart (NYSE: WMT). Target is the place where millennials shop for clothing and daily necessities. As the next generation comes of age, it will go to Target, too, because it’s familiar. Unless Target does something scandalous, this profitable cycle will continue as long as the company can evolve with the times. 

As of right now, staying current and fresh is exactly Target’s business plan. The company’s CEO Brian Cornell had this to say about its future:

You’ll continue to see us spending probably in the neighborhood of $3 billion of capital a year. So we said, that’s what it’s going to take to remodel stores and continue to invest in our business. 

Over time, we’ll probably go from remodeling 200 or 300 stores to you know, 150 to 200. But we’re always going to invest in our stores, and make sure we bring this inspiration, the newness, the excitement to our guests across the country.

Target doesn’t view spending $3 billion of capital a year as a negative thing; it’s investing in its stores and making sure customers enjoy their experiences. Not to mention, it has been able to bump up its minimum wage to $13 per hour and aims to increase that to $15 per hour. 

Investing in the backbone of its business will continue to benefit Target, as will treating employees with respect. They’ll respect the stores, making sure they’re in order and appealing to consumers, who’ll continue to shop at Target. 

The company’s strength shows through its stock price, which has soared 88% year-to-date thanks to consistent strong comparable sales and online growth. Target continues to update its stores, has begun opening smaller format stores in urban areas, and acquired same-day delivery service Shipt to improve its online business. 

This year was a great one for Target and its financials look good. I don’t see its momentum decreasing anytime soon. I hope the company stays focused on what it knows best and continues to keep consumers satisfied. 

Until next time, 

Jennifer Clark
Pro Trader Today