retail news in context, analysis with attitude

• From Reuters: Target said yesterday that its spending of “billions of dollars on its push to compete with the ease of delivery provided by Inc and Walmart Inc, buying grocery delivery firm Shipt, and building in-store pickup and drive-up services,” seems to be paying off.

“One out of five customers who used its same-day service in the quarter were new,” the company said, “with shoppers collecting their orders from stores within a couple of minutes of placing them through the company’s mobile app or website … Wednesday’s results showed the company’s same-day services drove more than three-fourths of a 34% increase in comparable digital sales in the quarter. Those online sales accounted for more than half of its total same-store sales.”

• From CNBC: Nordstrom said yesterday that as its “sales at full-price department stores fell 6.5% during the quarter ended Aug. 3, compared with a 5% drop last year. Net sales at its off-price Nordstrom Rack stores fell 1.9%, a steep decline from the 7% rise in the same year-ago period.”

But … “Nordstrom also said its digital sales, which represent 30% of the business, grew 7%. In the same quarter last year, its digital sales represented 28% of its total sales.” Which investors seemed to think was a positive sign, in addition to the fact that it “exited the quarter in a favorable inventory position.”
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