This morning, Target announced its fourth quarter and full-year 2018 earnings results. Click here for the full results, read more from Chairman and CEO Brian Cornell, and see below for a snapshot of how we're continuing to move our strategy forward.
Q4 & Full Year 2018
Key Results and Updates on Strategic Initiatives
We laid out a multi-year strategy in 2017 to transform our business in service to our guests. We have achieved significant progress in a short period of time, and 2018 marks our most successful year-over-year performance in well over a decade.
In 2017, we said we would reinvent our supply chain to deliver products to our guests and our stores with increased speed, accuracy and reliability. As a result, we’ve enabled a wide variety of industry-leading services.
Since acquiring Shipt in 2017, we’ve rolled out same-day delivery in more than 200 markets across 47 states. Shipt membership has doubled in the last year, bringing groceries and merchandise to even more guests when they need it. As we've scaled Shipt nationwide, the platform has added more retailers to its roster than in the previous 2 years combined, now delivering from more than 60 national/regional retailers.
After testing in 11 markets in 2017, today, Drive Up is available at nearly 1,000 stores coast-to-coast. We made close to 2 million parking lot deliveries last year. Not only is it a hit with guests and growing quickly—with delivery times under 2 minutes from store to lot—walking an order just outside our doors is fast and efficient.
Available at all Target stores, Order Pickup allows guests to order online and pick up in store on the same day for free. It continues to be a guest favorite and more than 95% of orders are ready within one hour. Our guests love it, and it is incredibly cost effective.
Today, Target is America’s easiest place to shop, operating the most comprehensive suite of fulfillment choices and coast-to-coast network of any retailer in the industry.
In 2017, we said we would reposition our owned brand portfolio to strengthen our position as the preferred shopping destination for our guests.
We have continued to unveil new owned and exclusive brands, from Project 62 to A New Day to Hearth & Hand with Magnolia. We've launched more than 25 new brands in the last 3 years.
We just announced our limited edition collection with vineyard vines arriving in stores this May. And this year, we’ll celebrate the 20th anniversary of our design collaborations
Today, our stable of owned and exclusive brands—and curated selection of national brand products—is a key differentiator that drives guests to choose Target, helping grow market share across all our core categories.
In 2017, we bet big on stores to reimagine our existing store experience, move into new neighborhoods with new formats, and create hubs to all digital orders.
Target remodeled 110 stores in 2017. In 2018, we completed more than 300 store remodels and will do another 300 in 2019, on our way to completing more than 1,000 remodels by the end of 2020. And our guests have responded: we’re seeing an average 2-4% sales lift at every remodeled store.
Small format stores
Our small-format stores are highly productive and have allowed us to open stores in areas where a full-size Target may not t—bringing a convenient and easy shopping experience to new guests. In Q3, we opened our first store in Vermont, bringing Target to all 50 states.
Today, our stores are at the heart of our progress—serving new guests, creating an inspiring shopping experience, and fueling our digital growth.
In 2017, we said we would make big investments in our team to offer service and expertise that would set Target apart.
In 2017, we raised our starting minimum wage to $11 an hour, setting our path to $15 by the end of 2020. Today, our minimum wage is $12 an hour.
We have created specialist roles across Beauty, Apparel, Electronics and Food & Beverage and invested in increased training, all with the goal of providing amplified guest service.
We celebrated our team's success in beating our holiday sales goals by adding jeans as a permanent option to wear on the job.
Today, our team remains our greatest asset, and with additional training and increased wage, we’ve ensured that shopping at Target is an experience like nowhere else.