Target discontinues popular brands, but sees increase in sales

Target Corp. has announced several changes including store redesigns and discontinuing some of its popular clothing brands, and the changes seem to be working in the retailer’s favor.

The chain store increased its comparable sales and traffic growth, according to its second quarter earnings report. Second quarter comparable sales increased about 1.3 percent, driven by traffic growth of 2.1 percent. Comparable digital channel sales increased 32 percent.

» RELATED: Target to discontinue popular clothing brands

» SNEAK PEEK: Target to redesign stores in major ways

In the second quarter, Target used $717 million to capital investment, paid dividends of $331 million. The chain also expects both third and fourth quarter comparable sales growth to be within the same range as second quarter results.

“I want to thank the team for their strong execution in the second quarter, which drove broad-based improvement in Target’s performance. In particular, we are pleased that second-quarter traffic increased more than 2 percent, reflecting growth in both our store and digital channels,” said Brian Cornell, chairman and CEO of Target.

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Target announced earlier this year that it would invest billions of dollars in the next three years to renovate and redesign existing stores. The retailer said it would open its first “reimagined” store in the Houston, Tex. suburb of Richmond. The redesign could hit 600 stores by 2019, Cornell said.


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