While the multi-national retail chain, Walmart, has been finding strength with help from grocery, its competitor, Target, has managed to find the same in apparel sales. The retailer mentioned that its apparel category had reaped dramatic gains the market share with its latest quarter. On Wednesday, the target reported its earnings for the quarter.
The company mentioned that the sales in the apparel section attracted the highest and most “dramatic” variant of sales in the market. Target happened to mention that the overall apparel sales for the last quarter reached a mark higher than 10 percent, which helped strengthen the profit margin noted by the company. This means Target’s attempt to attain its “Cheap Chic” tag has been working.
In its fashion department, the company has managed to refresh its existing stores in order to make the individual brands seem more like mini boutiques. This new styling comes with a higher number of mannequins & table displays that show off its merchandise in the best possible way. The company has launched more than 12 of apparel brands in a term of 3 years like the “Auden”-Lingerie brand, “A New Day”- Women’s apparel, & Goodfellow & Co. –Men’s Apparel.
All these clothes are priced reasonably with the winter sweaters for guys being sold for a price tag less than $30, while the party skirt for women is being sold for $27.99. At this point in the market, Target is notably succeeding while its competitors are yet struggling to achieve proper profits from clothes. Forever 21, the retailer for teen apparel has recently filed at the court for bankruptcy. Apart from that, Kohl’s after reporting its earnings on Tuesday mentioned that the women’s apparel section was actually its weakest in terms of sales during this period.
Not just that, Gap’s brands & its fast-growing label, Old Navy, have now started experiencing a struggle in the market to keep up with the decreasing demands. Dressbarn is also wrapping up the liquidation sales for its existing stores. This issue hasn’t just affected dedicated brands. Even the e-commerce giant Amazon has been struggling to increase the demands. The company has been trying its best to grow with regards to fashion. However, it has regularly struggled in its attempt to persuade the shoppers to purchase anything more than the basics from its website.
On Wednesday, the shares for Target amped up to a point higher than 12 percent, which is its highest of all-time in intra-day trading.