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Target Enters List of Top-Ten Online Retailers

By Daniel B. Kline - Feb 25, 2020 at 2:27PM

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The retailer has nearly tripled digital sales since 2016.

Target (TGT 1.70%) 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 (AMZN 2.07%) thoroughly dominates online sales in the U.S. with 38.7% of the total. That's followed by Walmart (WMT 1.85%) 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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Daniel B. Kline has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Target Corporation Stock Quote
Target Corporation
TGT
$172.48 (1.70%) $2.88
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$143.55 (2.07%) $2.91
Wal-Mart Stores, Inc. Stock Quote
Wal-Mart Stores, Inc.
WMT
$132.22 (1.85%) $2.40

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