MINNEAPOLIS _ Target Corp. reported strong sales and profits for the spring quarter as more shoppers embraced e-commerce. Here are some key takeaways:
_Digital growth skyrockets: Sales from Target.com and mobile apps grew 42% during the first quarter compared to last year.
_Shoppers say "I want it today!": Half of digital sales came from people using one of Target's same-day services _ picking up merchandise at stores themselves or using the retailer's delivery service, Shipt. It said it will continue expanding drive-up service, which now is available in 1,250 of its 1,850 stores.
_They don't look like warehouses: More than 80% of digital sales during the quarter were fulfilled by stores rather than from warehouses. Target saves shipping costs when customers pick up their own items, which is proving to be increasingly popular. It also can get items out the back door more quickly and save delivery costs by shipping out of stores closest to customers. Target is on pace to remodel 300 additional stores this year to turn them into small shipping and distribution centers.
It has turned some workers into "pickers" who run around the stores gathering merchandise. "Our guest preference is meeting up with the capabilities we have _ and they also happen to be the most profitable for us going forward," said chief operating officer John Mulligan.
_One-day delivery accelerates: Target said more than 50% of items are delivered the next day by using stores as shipping centers. For once, Amazon is playing catch-up. It announced in April that it would soon begin offering free next-day shipping to all of its Prime members. Walmart announced its own plan to provide next-day service to 75% of the country by the end of the year.
