After a rough couple of years, Target stock is up 63% year to date.
The majority of the retail industry has struggled in 2019, mainly because a few companies dominate most of the market share. Target is undoubtedly one of those big players. The stock is up 63% year to date, and it’s one of the few companies that can stand its ground with Amazon.
However, the future wasn’t always so bright for Target. For several years, Target struggled to adapt to the rising e-commerce trends. And the stock got hit particularly hard from 2017 to 2018.
But this year, it’s like we’re seeing a whole new Target. The company continues to deliver stable earnings, and it continues to improve its stores and the services it offers its customers.
3 reasons Target is winning in 2019
Listed below are three tailwinds that will continue to propel Target forward in 2019.
Target is expanding its grocery division
For Target customers, one of the biggest draws is the company’s grocery division. The typical Target customer doesn’t want to stop at three different stores while running errands.
With Target, you can buy all of your household staples under one roof. And for customers that hate grocery shopping, the company also offers same-day grocery delivery through Shipt.
Still, many people pointed out that Target’s supply of fresh food leaves something to be desired. That’s why the company is launching a new grocery brand called Good & Gather. It will offer many new products, like salad mixes, fruits and veggies, nut butter spreads, and more.
The introduction of the new line won’t be complete until the end of 2020. However, it should be worth the wait. Target executives expect Good & Gather to become a multibillion-dollar brand.
Target is partnering with other retailers
Another way Target has boosted its presence is by partnering with other reputable brands. The company recently announced a new partnership with Disney. And the company has partnered with dozens of designers to offer clothing, accessories, and home decor.
And most recently, Target announced it would help relaunch ToysRUs.com. The company is partnering with TRU Kids, the parent brand of Toys R Us.
When Toys R Us shoppers visit the new website and try to purchase certain items, they will be rerouted back to Target’s website. This plug could give the company a significant boost over the holidays.
The company still has room to grow
And finally, the growth story for Target is far from over. The company continues to come up with new initiatives, like its in-store grocery pickup, expanded loyalty program, and free shipping.
Target has its finger on the pulse of what’s most important to its customers. And this should continue to drive further growth in the coming years.