Target Sales Skyrocket, but Profits Fall
Target saw a huge jump in sales – the biggest in 15 years – as the coronavirus sent shoppers into stores and online to stock up on essential goods. But profits slumped as lower margin goods flew off the shelves. Now, the retailer is trying to adapt to an extremely unpredictable situation. Will there be a back to school shopping season, or will schools remain closed? What about the colleges and universities? What will holiday celebrations look like this year? Without answers to these questions, even “essential” retailers allowed to remain open will have to grapple with the long-term effects of the pandemic.
CEO Brian Cornell expects the unpredictability to continue as states loosen rules and economic conditions change, leaving Target to adjust week by week to the rapidly changing environment.