Target (NYSE:TGT) has become a digital sales leader. The company moved from the number 11 e-commerce company in 2019 to eighth place in 2020, according to an annual report from eMarketer.com.

The retail chain has grown its U.S. online sales from $3.08 billion in 2016 to a forecasted $8.34 billion this year. It's expected to grow its overall share of U.S. online sales from 0.8% to 1.2% during the same timespan.

A Shipt worker leaves Target with a full grocery cart.

Target offers same-day delivery via its Shipt service. Image source: Target.

How does Target compare?

Amazon (NASDAQ:AMZN) thoroughly dominates online sales in the U.S. with 38.7% of the total. That's followed by Walmart (NYSE:WMT) which has 5.3%.

Target's 1.2% may not seem impressive but it still represents a massive shift for the retailer. It has been growing sales overall and its digital share clearly shows that while its customers like brick-and-mortar locations, they are becoming increasingly willing to shop with on the retailer's app or website.

"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," eMarketer forecasting analyst Cindy Liu said in a web post. "Store renovations and expanding same-day fulfillment options, such as in-store pickup, drive-up, and delivery with Shipt, are paying off."

It's Amazon's world

Target and Walmart have done an excellent job building omnichannel models that give consumers a choice. Amazon is actually following that in a reverse direction by adding brick-and-mortar locations of its own and partnering for returns.

Neither Target nor Walmart needs to become a digital-first retailer. Both will succeed by making every ordering, delivery, and pickup option work well for their customers.

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