Target hits the bullseye during the holidaysTarget hits the bullseye during the holidays

Target pulled out of a sluggish third quarter with a strong showing over the holiday months, the retailer announced Thursday. Both Black Friday and Cyber Monday saw record-high sales, and total sales for November and December increased 2.8% year over year. Comparable sales rose 2% compared to the same time period a year ago, and traffic grew 3%, marking Target’s eighth consecutive month of year-over-year traffic growth.

Target needed this

The holiday shopping spree came at the perfect time for the Minneapolis-based retailer. During its third-quarter earnings call in late November, Target lowered expectations for fourth-quarter sales, which were expected to be flat. Comparable sales had increased just 0.3% year over year in the third quarter, reflecting a comparable-store sales decline of 1.9%. This new news of a robust holiday season could set Target back on track, and the retailer may now exceed fourth-quarter expectations. Target announced Thursday that it expects growth of about 1.5% in fourth-quarter comparable sales.

Target engaged in several cost-cutting efforts last year, the most recent being in October when it reduced prices on over 2,000 items.

Leadership revamp

Target also announced leadership team changes on Thursday. Mark Schindele, executive vice president and chief stores officer, and Brett Craig, executive vice president and chief information officer, are both retiring. Adrienne Costanzo, senior vice president, store operations, will replace Schindele, while Prat Vemana, executive vice president, chief digital and product officer, will take over for Craig. Sarah Travis, senior vice president, Roundel and social commerce, will be promoted to executive vice president and chief digital and revenue officer.

Target completely revamped its leadership team over the last few months to strengthen performance. In late September, the retailer brought longtime PepsiCo veteran Jim Lee on board as its chief financial officer. In June, Cristina Hennington, who had been chief growth officer at Target, became chief strategy and growth officer, and Rick Gomez, who had been chief food, essentials, and beauty officer, became chief commercial officer. Lisa Roath transitioned from chief marketing officer to chief merchandising officer of food, essentials, and beauty.

By the numbers