“Also, this fall, we’ll roll out the third and final phase of our Good & Gather assortment adding more than 600 items to bring the total number of items to nearly 2,000,” he added.
Cornell said during the call that the retailer’s exclusive brands and own brands are “enhancing Target’s differentiation and delivering attractive gross margin rates.”
An area where the company has a lot of store brand options is apparel, and it’s important to note, that Target reported a “double-digit” growth in comp sales for the quarter, compared to the previous quarter where it declined by 20%.
Helping to drive this is its activewear brand All in Motion, which Cornell said is thriving in a pandemic era, where activewear is the ideal work-from-home gear. Other categories that were down, include home products in decor, where consumers are doing more home projects. Target has a large assortment in that category, headlined by the Threshold brand. It also launched the new bedding brand Casaluna in June. Cornell gave the new brand a shout out for its use of natural materials like hemp, silk and cashmere at an affordable price.
He said Halloween will have a different look in the fall, too, with a lower assortment of candy, anticipating a dip in trick or treating, but costumes will be available, including its exclusive costumes. The retailer is also going to be rolling out gift bags with tips on how to celebrate Halloween safely this year.
Second Quarter Highlights
To go along with Target’s incredible 24.3% same-store sales increase, the retailer also reported a year-over-year jump in digital sales of 195%, accounting for 13.4 percentage points of Target's same-store sales growth. Target says its physical stores fulfilled more than 90% of Target's second quarter sales, however.