After a year of declining sales and foot traffic, Target says its turnaround strategy is resonating with shoppers.
The discount retail chain updated its sales guidance for the second quarter of 2017 and now expects an increase in comparable sales when it reports financial results in mid-August.
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Target turnaround: Foot traffic, sales up
The Wall Street Journal reported back in February that Target executives were committed to lowering prices, remodeling stores, launching new brands and developing the retailer’s supply chain and digital capabilities this year.
It appears those investments are already paying off, according to a statement from Target chairman and CEO Brian Cornell:
“Target’s recent progress reinforces our confidence and commitment to our strategy as we build an even better Target for tomorrow. Following better-than-expected results in the first quarter, we’ve seen additional, broad-based improvement in traffic and category sales trends in the second quarter, despite continued challenges in the competitive environment.”
Cornell said guests are responding to the recent launch of Cloud Island, an exclusive baby brand featuring nearly 500 items — everything from nursery décor and bedding to bath and layette products.
There are more exclusive brands on the way. Target recently announced that it will roll out four additional exclusive brands — three apparel and one home décor – over the next few months.
Target is also pleased with the initial performance of Target Restock, a pilot program in the Minneapolis area that provides next-day delivery of household essentials for a flat fee.
Top ways to save at Target
To save money at Target, scan the weekly ad, download the Cartwheel app for discounts and get 5% off using the REDcard.
“We’ll match the price if you buy a qualifying item at Target then find the identical item for less at Target.com, select online competitors, or in Target’s or competitor’s local print ad. Price matches may be requested at time of purchase or Price adjustments within 14 days after purchase. The full list of online competitors is available online or at Guest Services.”
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