Target Latest Retailer to Report Strong Holiday Sales
Add Target Corp. to the growing list of retailers who had a more robust holiday season as shoppers were in a spending mood. The Minneapolis-based retailer reported this morning that comparable sales in November and December rose 3.4 percent, much higher than its forecast for sales to be flat to up 2 percent. The company said it saw sales growth across all categories as well as higher traffic in stores and online. Target also raised its profit forecast for the full fourth quarter. Target isn't alone in reporting solid holiday sales. On Monday, Kohl's reported a giant 6.9 percent jump in comparable sales during the holidays. Meanwhile, J.C. Penney had a 3.4 percent sales increase and Macy's 1 percent in November and December.
Total Retail's Take: The holiday season is proving to be exactly what retailers needed to turn around what otherwise had been a pretty disappointing 2017 for most brands. A combination of factors, including an improving economy and higher consumer confidence, have helped to contribute to one of the strongest holiday seasons in years. And the good news doesn't end there for retailers. Many retailers are expecting to see significant boosts to their bottom lines as a result of the lowering corporate tax rate, part of the GOP's tax reform bill. Walgreens, for example, announced that it expects to see a $200 million cash savings as a result of the lower tax rate. The challenge for retailers will be to carry this momentum — and extra cash — into 2018.