Target’s push to focus more on eCommerce, among other changes the U.S. retailer is making, could boost its stock in the next two years by as much as 20 to 30 percent.
That’s according to Barron’s, which – as Reuters reported – said Target has been making a lot of competitive moves against Amazon, which have helped to increase the portion of its revenue that comes from the internet. In the latest fiscal year, eCommerce represented 4.4 percent of sales, which is up from 2.8 percent in fiscal 2016, reported Reuters, citing Barron’s – which is even higher than Walmart stores. Barron’s also pointed to the introduction of a slew of exclusive new brands at Target, such as the Cat & Jack children’s clothing label, as helping to boost growth.
The retailer is slated to roll out 12 more store brands this year. Target is also trying to get more customers to use its credit cards, debit cards and loyalty programs. It is also looking at smaller stores for populated areas, noted the report.
Last week, Target announced GiftNow, a service being introduced on the retailer’s website that will be powered by Loop Commerce. The GiftNow option can be selected when viewing products on Target.com, allowing customers to assemble and send a gift electronically. Recipients can view the gift online, select the size or color of the product or pick another item entirely. Because the process happens entirely online, no returns are necessary, according to Target’s press release.
The retailer also announced that it would be adding 12 exclusive brands by the end of 2018, eight of which will be available during the 2017 holiday shopping season. Target said that the brands being introduced this year include products for babies and kids and apparel for both men and women.
“While there’s an incredible amount of change happening across retail, we’re focused on doing what’s best for our guests and leaning into what makes Target special, particularly during the holidays,” said Target CEO and chairman Brian Cornell. “We’re making progress against our long-term strategy and entering the season with momentum.”