Target Breaks Into Top 10 E-Commerce Companies

Retail

Published: March 2, 2020 12:00 pm

Last Updated: March 2, 2020 12:37 pm

While traditional retailers have had a tough go of making profits in their brick-and-mortar businesses, e-commerce sales have risen in double digits for many of them. The issue, of course, is that the base that online sales are growing from is relatively small.

Target Corp. (NYSE: TGT), which reports fourth-quarter and full-year earnings on Tuesday, said in January that comparable-store sales in the 2019 holiday season rose by 19%. When Walmart Inc. (NYSE: WMT) reported results last month, the company said digital sales jumped 37% for the full year.

Target has moved into the top 10 e-commerce retailers in the country, according to research firm eMarketer. Last year the company ranked 11th. In the new ranking, Target leapfrogged both QVC and HSN to reach eighth place in the ranking.

In 2019, eMarketer estimates that Target’s e-commerce sales rose 28.1% year over year to $6.73 billion. The firm projects 2020 e-commerce sales up 24% to $8.34 billion, about 10% of Target’s total expected revenues for the year.

The top 10 e-commerce companies ranked by percentage of total U.S. e-commerce sales:

Amazon.com Inc. (NASDAQ: AMZN): 38.7%
Walmart: 5.3%
eBay Inc. (NASDAQ: EBAY): 4.7%
Apple Inc. (NASDAQ: AAPL): 3.7%
Home Depot Inc. (NYSE: HD): 1.7%
Wayfair Inc. (NYSE: W): 1.2%
Best Buy Co. Inc. (NYSE: BBY): 1.3%
Target: 1.2%
Costco Wholesale Corp. (NASDAQ: COST): 1.2%
Macy’s Inc. (NYSE: M): 1.1%

Both Apple and eBay will see their 2020 share of the digital retail market decline slightly compared with 2019’s market share. Amazon, however, is expected to add 1.4 points to its 37.3% share of the 2019 market to nab 38.7% of 2020 digital sales. eMarketer also notes that Amazon will capture 4.6% of all U.S. 2020 retail sales (online and offline).

Analysts expect Target to report quarterly earnings per share of $1.65 on $23.49 billion in revenue on Tuesday.

Target stock traded up 4.7% shortly before noon Monday, at $107.84 in a 52-week range of $70.03 to $130.24. Its consensus price target is $134.59.

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