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Can Target survive the Coronavirus? — Market Mad House
Interestingly, Target’s (NYSE: TGT) stock regained most of the value it lost in the first half of 2020.
To elaborate, Target started 2020 at $126.07 on 2 January; fell to $91.04 on 25 March 2020 and rose to $121.70 on 17 July 2020 and $125.88 on 31 July. Hence, Mr. Market still believes in Target despite several months of a pandemic.
One reason for Mr. Market’s new faith in Target is online sales. For example, Target became one of eMarketer’s U.S. Top 10 online retailers for the first time in 2019. eMarketer predicts Target’s ecommerce could grow by 24% to $8.34 billion in 2020.
Target Turning stores into Fulfillment Centers
Consequently, Target’s share of the US ecommerce market grew from 1.1% in 2019 to 1.2% in 2020. In contrast, eMarketer estimates Amazon (NASDAQ: AMZN) controlled 38.7% of the US ecommerce market in 2019.
Importantly, Target was expanding its online capabilities before coronavirus. For instance, Target is trying to remodel 1,000 locations to create mini distribution centers in its stores, SupplyChainDive reports .
