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- RESEARCH & AWARDS
Another solid quarter of earnings for Target has the retailer in a solid position for the holiday season, Planet Retail U.S. Research Director Sandy Skrovan said in a recent report.
“Target continues its string of quarterly comparable store sales increases with a solid showing in Q3, driven by a strong back-to-school season, gains in food and health and beauty, and higher average transaction size,” she said.
Target is ranked eighth on the PLBuyer Top 35 list for 2011.
Target Executive Vice President of Merchandising Kathryn Tesija told investors on the earnings call that its new Threshold brand was off to a good start.
“We’re pleased with the launch of our new owned-brand collection, Threshold, which offers guests a fully redesigned, high-quality collection that will inspire and help update their homes,” she said, according to transcripts from Seeking Alpha.
The collection rolled out in the third quarter and will continue to add items through the spring, she said.
In addition, Tesija mentioned the company’s new Nate Berkus collection that debuted exclusively at Target in the quarter.
“The Nate Berkus collection … has already been a hit with guests since setting late last month,” she said. “This signature Home collection features bedding, bath, accessories, lighting, rugs, and window treatments. This will be an ongoing collection, with new items added to the assortment in 2013.”
The company reported same-store sales growth of 2.9 percent in the quarter. It said in the call that it was on track to open its first stores in Canada in April, that it plans to add three CityTarget locations in 2013 to the five it has now, that all stores across the chain are equipped with free Wi-Fi for shoppers, and that its discount area positioned in the front of the stores will be transformed into an area for stocking stuffers through the holiday season.
“Holidays aside, Target is piloting some initiatives – with solution-selling at the core – which, if successful, could raise the bar and further set Target apart from the competition,” Skrovan reported. “A Beauty Concierge program in Chicago and the Geek Squad supporting electronics sales and service in Denver have the potential to roll out chain-wide beginning in 2013.
“These are just the types of innovative customer services and solutions that guests have come to expect from Target, and what keeps them coming back for more. It’s also what gives Target the edge in increasing share of wallet among its best guests.”