Target Canada has reported a 63.1 per cent sales growth for the second quarter, ending on August 2. The sales during this three-month period were $499 million, thanks to the new stores that have recently opened. There was an 11.4 per cent decline in comparable sales, as this is the first period with comparable sales for Target Canada.
While the gross margin rate for the second quarter was 18.4 per cent, this is a decline from 2013’s second quarter of 31.6 per cent. Other results included a 30 per cent increase over last year’s 18 per cent from $231 million in digital sales. Meanwhile, the company’s American counterpart experienced a decrease in sales transactions by 1.3 per cent.
“While results from the quarter didn’t meet our expectations, we are seeing some early signs of progress as we work to improve results in the U.S. and Canada,” Executive Vice President John Mulligan told Grocery Business. “In the U.S., traffic trends continue to recover and monthly sales are improving, with July comparable sales up more than one per cent. Better U.S. sales have continued into August, driven by early back-to-school results. In Canada, the team is making important changes to operations and the merchandise assortment with a focus on delivering improved results by this holiday season.”
