The pandemic has dealt a crushing blow to countless retailers, but for behemoths like Amazon, Walmart and Target it has brought outsized profits.
Target said it expects to open 27 new stores between now and the end of the year, part of a rosy second quarter earnings report it released Wednesday.
The big-box retailer’s net income soared to $1.69 billion April through June, an 80 percent jump year-over-year, the company said. Revenue also spiked to nearly $23 billion, from $18.4 billion at the same time last year. Same-store sales rose by 11 percent and its digital sales were nearly three times what it reported last year.
Target gained 10 million new digital shoppers in the first half of the year, largely driven by the pandemic, officials said. Digitally originated sales made up 17.2 percent of all sales for the quarter, up from 7.3 percent at the same time last year.
The company’s same-day services that consist of order pickup, drive-up and grocery delivery service all recorded large gains.
“We have never been more confident in our differentiated strategy,” CEO Brian Cornell said during the earnings call with investors.
Target has also been inking leases for stores in recent months. In New York, it recently took nearly 80,000 square feet on the Upper East Side and Upper West Side. It signed a 20-year, 55,614-square-foot lease at Vornado Realty Trust’s 150 East 86th Street, and a 15-year, 23,562-square-foot deal at the Chetrit Group’s Columbus Square complex at 795 Columbus Avenue. It will also take nearly 45,000 square feet of retail space in a $242 million mixed-use project in Harlem.
Target’s earnings follow those of Amazon, which last month reported a record second quarter sales of $88.9 billion.
Walmart also saw its quarterly earnings jump, — e-commerce sales grew 97 percent — with revenue of $137.7 billion.
Contact Sasha Jones at sasha.jones@therealdeal.com
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