Target's store remodels, delivery options are winning over customers

The Bullseye just announced another big jump in sales.
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Target store inside

Target's focus on customer convenience is paying dividends judging by its latest financial results.

The Minneapolis-based retailer revealed Q1 comparable sales rose 4.8 percent compared to last year, helping it generate $17.63 billion in sales and profits of $795 million.

Playing a significant role in this increase is Target's efforts to expand its delivery and fulfillment services, via its acquisition and expansion of Shipt same-day grocery deliveries, as well as rolling out pick-up and drive-up options to more stores.

Target says same-day fulfillment services drove more than half of the company's digital sales growth, and more than a quarter of its 4.8 percent increase in same-store sales.

"Our ability to offer the same-day services, which deliver high level of satisfaction, is a result of our strategy to put stores at the center of fulfillment," said COO John Mulligan in an earnings call.

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A crucial part of Target's success has been the major investment in store remodels to maximize convenience for shoppers.

The company is remodeling another 300 stores this year as the investment totaling billions of dollars continues, revamping the decor to make for a more enticing shopping experience, as well as changing the layout to maximize its ability to handle increasing numbers of delivery, pickup and online orders.

Target's online sales grew 42 percent in Q1, with digital sales contributing 2.1 percent to the company's 4.8 percent sales growth

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