Target's online sales skyrocket

Target may be seeing fewer people in the aisles, but it's experiencing a surge of online shoppers. The retailer's online sales have nearly quintupled so far in April. Several days were so hot that they topped Cyber Monday's online sales.

The digital surge in March and April offset the bulk of the damage done by the lockdowns to sales at its physical stores. Comparable store sales in April fell in the mid-teens, but quarter-to-date, they're up over 7%.

Although sales of clothing and accessories tumbled more than 40%, CEO Brian Cornell said he sees opportunities to grab market share across its apparel business amid the decline in the retail industry.

One caveat: Target sees its margins dropping in the first quarter. That's because it is temporarily boosting wages by $2 an hour for store and distribution center workers. And while food and beverage sales shot significantly higher, those products command low margins.

Target shares, which have risen 30% in the last 12 months, shed some of those gains in early trading Thursday.

Video Transcript

- Target may be seeing fewer people in the aisles, but it's experiencing a surge of online shoppers. The retailer's online sales have nearly quintupled so far in April. Several days were so hot that they topped cyber Monday's online sales. The digital surge in March and April offset the bulk of the damage done by the lockdowns to sales at its physical stores. Comparable store sales in April fell in the mid teens, but quarter to date, they're up over 7%.

Although sales of clothing and accessories tumbled more than 40%, CEO Brian Cornell said, he sees opportunities to grab market share across its apparel business amid the decline in the retail industry. One caveat, Target sees its margins dropping in the first quarter. That's because it is temporarily boosting wages by $2 an hour for store and distribution center workers. And while food and beverage sales shot significantly higher, those products command low margins. Target shares, which have risen 30% in the last 12 months, shed some of those gains in early trading Thursday.