Target Provides Updates After Strong Holiday Season
Before Target Corp.’s fiscal year comes to a close on Feb. 1, the retailer is getting candid about its business and leadership.
While it plans to release fourth quarter and fiscal year results after the close of the current period, Target provided a recap of its recent holiday performance. Total sales rose 2.8% on a year-over-year (YoY) basis in November and December, with a 2% bump in comparable sales and record sales on the pivotal Black Friday and Cyber Monday occasions. Traffic was up 3%, with more visitors both in-store and online.
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Another bright spot after what has been an up-and-down year for Target is its digital performance. The mass retailer’s emphasis on and expansion of more convenient ordering and fulfillment options paid off, with a 9% YoY boost in digital sales in the last two months of the calendar year. Elsewhere in the e-comm space, the third-party Target Plus marketplace grew nearly 50% over the busy holiday months.
The better-than-expected results following a relatively rough third quarter, spurred Target to raise its outlook for the fourth quarter. Same-store sales are now pegged to rise 1.5%, compared to the previous projection of a flat rate.
"Our team delivered continued traffic growth and better-than-expected holiday-season performance, thanks to their focus on serving guests with an inspiring, easy, and joyous shopping experience," said Chair and CEO Brian Cornell. "With an unmatched combination of quality and value, on-trend assortments and a seamless shopping experience, our team continues to make Target a destination for consumers, both during important seasonal moments like the holidays and in the everyday moments in between."
In addition to looking back at its results for the holiday season that was marked by heavy sales promotions, Target is looking to the future with some leadership changes. The retailer announced the March 29 retirement of 25-year company veteran Mark Schindele, EVP and chief stores officer, who will be succeeded by Adrienne Costanzo, current SVP of store operations. In her new role, Costanzo will oversee operations across the organization’s nearly 2,000 U.S. locations and lead more than 350,000 team members.
Also stepping down is Brett Craig, EVP and chief information officer, retiring after 15 years with the company. He will be succeeded by Prat Vemana, EVP and chief digital and product officer. In less than three years at Target, Vemana is credited with much of the recent digital success, after redesigning the company's digital platforms and capabilities and enhancing the digital shopping experience. Additionally, Target shared that Sarah Travis, SVP of the in-house media company Roundel and social commerce, will be promoted to EVP and chief digital and revenue officer and join the leadership team.
"These leadership updates will help us continue to deliver a differentiated shopping experience every day across every channel," Cornell remarked. "I want to thank Mark and Brett for the notable contributions they've made during their long tenures with the company and wish them both well in their retirements. Adrienne, Prat and Sarah all bring tremendous retail expertise to their roles and Target's leadership team as we accelerate Target's strategy."
More leadership changes may be coming in 2025: In September 2022, Cornell announced his intention to remain as CEO for three more years before his own retirement.
