Retail company Target Corp. has Toys R Us to thank for the vitality its business has regained.
Ever since the toy retailer declared bankruptcy and shut down all of its 800 stores across the country, Target’s sales suddenly shot up.
The company’s story is pretty much like that of an underdog who emerges winner in the end and gains everybody’s love.
One clear sign that Target has completely recovered from its sluggish growth is the $17.8 billion revenue it reported in the second quarter of 2018, beating analyst expectations of $17.3 billion.
Shoppers have been showing up at Target stores in droves, which led to the 6.5% increase in its same-store sales—the highest in 13 years —according to the company.
The retailer’s online sales also grew 41%, which accounted for 5.6% of its total sales.
“We’re picking up sales that would have gone to Babies R Us and Toys R Us. … We’re certainly benefiting from new toy buyers, baby buyers that are coming to Target more frequently.” Brian Cornell, Target CEO
Target Set To Keep The Toy Industry Vibrant
The demise of Toys R Us has left a big gap in the toy industry, and Target is more than ready to fill it in with their offerings.
It has, in fact, increased its inventory in preparation for the buildup to the holiday season.
In an interview with CNBC, Cornell said categories like toy and baby are on top of the company’s priorities as a big opportunity lies ahead of them.
With the run up to Christmas starting shortly and the season for toys only going to increase it could mean a record breaking quarter for Target in Q4.
Do you think Target has what it takes to claim what was once the territory of Toys R Us?
Have you seen an increase in Target’s popularity yourself? Let us know what you think in the comments below or in our Facebook Group.
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