Target sees sales growth but weak spots online
Target said traffic and sales at its stores climbed in the third quarter.
But like other retailers, it did take a hit from unusually warm weather, particularly in its online sales
The Minnesota-based discount retailer has been trying to recapture its “cheap chic” image with a new focus on “signature” categories, like fashion, kids, baby and wellness.
Sales at existing stores of those signature items grew two and a half times faster than the company’s average in the third quarter.
Chief Financial Officer Cathy Smith said the use of mannequins in stores proved helpful.
“When we display an outfit on a mannequin and we do a full display of all the accessories, we’re selling through the product so fast,” she said.
But Smith said apparel and accessories were weak spots online in the third quarter.
“When it’s 75 and 80 degrees in October and early November, people aren’t buying winter coats,” said Edward Jones analyst Brian Yarbrough.
Yarbrough said that issue has also proved vexing to other retailers recently.
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