Walmart posted quarterly earnings on Tuesday which showed an astounding 74 percent increase in eCommerce sales from a year prior – mostly due to COVID-19 restrictions and people buying more online. Yesterday, Target released similar quarterly earnings showing an even larger increase in online sales.
On Wednesday, Target released their , with the highlight being a 141 percent increase in online sales from a year ago. Other highlights include over 11 percent growth in revenue and a nearly 11 percent increase in same-store sales, as Target kept their doors opens during COVID-19 restrictions to sell groceries and other essential supplies.
While their growth in digital sales was unprecedented, it came at a heavy cost. Supply chain and labor costs also rose significantly for the company to keep up with online demand, and net profits fell to $284 million – down from $795 million a year earlier.
Higher-margin items also contributed to a loss in profit, with apparel falling 20 percent in overall sales during the quarter.
Ultimately, Target CEO Brian Cornell said that the COVID-19 pandemic has created a quantitative for the company this quarter. The company sold plenty of groceries and lower-margin items online, but sales failed to increase profits.
