Target used to be one of those legacy brands that had a hard time transitioning to digital and overall, they seemed to have missed out on the early eCommerce days. In 2011, Target still refused to stock music albums that were released on digital first. In 2013, they suffered a major data breach that cost them more than just a large fine. Not exactly the recipe to compete with the online retail giants of the world.
But these days are long gone. Target’s focus on reinvigorating their online game over the past decade has paid off massively in recent years, thanks to some smart, innovative, and persistent online and CRM tactics.
Closer to the end of the decade they started breaking their own, old records. And, recently Target was named by Ad Age one of the comeback brands of the decade, explaining how it failed and recovered in the last 10 years.
But as nice as personal records and media accolades are, nothing beats the good ‘ol sale figure.
And, according to eMarketer’s newest report, Target finally cracked the Top10 US eCommerce rankings, jumping 3 spots from 11th last year to 8th this year.
Projection-wise, the same report estimates Target’s eCommerce business will jump 24.0% to $8.34 billion. That means its share of the total U.S. eCommerce market will grow to 1.2%, up from 1.1% in 2019.
Furthermore, in 2020, Target will inch past Costco, which will generate $8.33 billion in eCommerce sales.
One other angle showing the effect of this success can be viewed by simply glancing at the company’s stock performance – reaching a new peak late in 2019. In the first few weeks of 2020, the share did go down 8.7% as the retail world reported disappointing holiday sales.
More recently, Target was hit with a labor board investigation and is being accused of restricting workers’ rights. An employee activist website was even blocked from the store servers and flagged for “hate and racism.”
With its many ups and downs, however, Target remains a major name to reckon with, and, making a “Target run” still is a part of our everyday lives. An example of how a brand’s identity contributes to its retention efforts.
“At a time when brick-and-mortar stores are struggling to keep up with the fast-changing retail landscape, Target seems to have hit the bullseye,” said eMarketer forecasting analyst Cindy Liu. “Store renovations and expanding same-day fulfillment options, such as in-store pickup, drive-up and delivery with Shipt, are paying off. Target has found a way to use its stores to fulfill online orders while keeping up with customer demands for convenience and speed.”
In other news
Further proving the company’s encouraging growth story and understanding of the importance of multichannel marketing efforts – Target has seized upon the direct-to-consumer (D2C) phenomenon by selling products online and in-store from a dozen startups. Recently, it partnered up with 2 startups including Quip, an electric toothbrush company and Native, a natural deodorant brand.
Target plans to open a massive warehouse in the Little Village neighborhood, in Chicago. The idea is to cut a deal to occupy a controversial development underway on the former Crawford Power Plant site.
Oh, and an 8-year-old girl and her friends dressed as Target employees for her birthday at her favorite place on Earth: a Target store. Cause it’s never too early to start nurturing relationships with customers. Or, even future customers.