Target’s Q2 Digital Sales Soar 195%, Alibaba Returns to Pre-Pandemic Revenue Growth and Toys R Us Online Sales Fulfilled By Amazon
Target’s Q2 Digital Sales Soar 195%
Target continues to reap hefty rewards from investing in omni-channel. Now, it has also managed to draw consumers back to stores. Web sales grew 195% over the same period a year ago in August. Comparable-store revenue, including online, grew 25.3%, the highest amount the company has ever reported, with digital accounting for 13.4 percentage points of Target’s comparable sales growth and physical store comparable sales 10.9 percentage points. “It’s worth pausing to acknowledge that it’s just under 11 [percentage points], this store-only comp stacks up as of the best in our history,” CEO Brian Cornell said on an earnings transcript obtained from Seeking Alpha. “And yes, it happened at a time when American consumers are adopting digital shopping like never before.”
What stood out to us? "It happened at a time when American consumers are adopting digital shopping like never before.”
Alibaba Returns to Pre-Pandemic Revenue Growth
Alibaba Group Holding Ltd.’s revenue growth returned to levels not seen since the pandemic, fueling hopes of a Chinese economic recovery despite worsening U.S. relations. China’s most valuable corporation reported better-than-expected 34% sales growth in the June quarter, a shade off the 38% it managed in the December quarter before COVID-19 shut down swaths of the country. President Trump has made a tough position on the world's No. 2 economy a key element of his campaign in the lead-up to U.S. elections, sanctioning or threatening to clamp down on the Asian country’s biggest technology companies. “We face uncertainties from not only the global pandemic but also increasing tensions between U.S. and China,” Zhang told analysts on a call. “We are assessing the situation and any potential impact carefully and thoroughly, and will take necessary actions to comply with any new regulations.
What stood out to us? The election is only a few months away.
Toys R Us Online Sales Fulfilled By Amazon
Amazon is now fulfilling orders referred to it by the new Toys R Us’ website. Consumers browsing products on toysrus.com are now sent via “view price now” or “check availability” button to Amazon’s website, where they can make purchases. This role was previously filled by Target, which announced a partnership with Toys r Us last year ahead of the holiday season. The industry publication The Toy Book reported in July that Target and Toys R Us had ended their partnership. With Amazon now in the mix, it’s unclear what impact the partnership will have.
What stood out to us? The power of a brand.
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Before you go
2020 changed the face of grocery retailing, likely forever.
Retailers launching a lobbying group to fight counterfeit goods on Amazon.
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