Target Sees Sturdy Black Friday Sales; Strategies Pay Off

Zacks

Target Corp. TGT stated that it witnessed a robust start to the holiday season. This Minneapolis, MN-based company informed that bargain hunters took advantage of the great deals that were offered both in stores and online on Thanksgiving Day as well as over the Black Friday weekend. We believe that the company’s promotional strategy and the launch of “10 Days of Deals” provided this Zacks Rank #3 (Hold) company the much-needed head start.

Although the company did not make any comments on the sales results, it highlighted that sturdy sales were registered across items such as Apple Watch and Apple iPads, Beats Solo 2 headphones, FitBit Charge HR and the Philips Sonicare 2 electric toothbrush. Thanksgiving Day turned out to be the company’s best day for online sales, driven primarily by electronics. Some of the hot-selling Black Friday items also comprise gaming consoles, including Nintendo Wii U; TVs; a three-foot stuffed teddy bear; and toys of LEGO, Barbie, Disney Princess and Star Wars.

Under its “10 Days of Deals” program, which started from Nov 22 and will run through Dec 1, Target is offering huge discounts on items such as electronics, kitchenware, toys and more. The company also announced that shoppers who made purchases of $75 or more on Black Friday will get a discount of 20% on a transaction on any day from Dec 4–13. Moreover, customers can avail an extra 5% off by using their REDcard.

We believe retailers – whether it be Best Buy Co., Inc. BBY, Macy’s, Inc. M or Wal-Mart Stores Inc. WMT – will leave no stone unturned to tap this holiday season. Be it early-hour store openings, promotional events, free shipping on online purchases or heavy discounts, retailers will try every trick to boost sales. The holiday season accounts for a sizeable chunk of yearly revenues. This is the reason why retailers grab every possible opportunity to drive footfall.

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