Target’s strong focus on ecommerce, including a 2019 holiday push on fast delivery options and buy online, pickup in store (BOPIS), has propelled the big-box retailer into the top 10 for U.S. ecommerce sales, according to a new report from market analyst firm eMarketer.
Target checks in at No. 8 as its ecommerce sales are projected to increase 24% to $8.34 billion in 2020, elevating its total share of the U.S. ecommerce market from 1.1% to 1.2%, eMarketer said. Since 2016, Target’s ecommerce sales have risen 171%.
“At a time when brick-and-mortar stores are struggling to keep up with the fast-changing retail landscape, Target seems to have hit the bullseye,” eMarketer forecasting analyst Cindy Liu said in the eMarketer post. “Store renovations and expanding same-day fulfillment options, such as in-store pickup, drive-up and delivery with Shipt, are paying off. Target has found a way to use its stores to fulfill online orders while keeping up with customer demands for convenience and speed.”
Previously ranked 11th for ecommerce sales, Target is leapfrogging Costco, which eMarketer said will generate $8.33 billion in ecommerce sales, and Macy’s, whose share of the ecommerce market will decline 1.2% in 2019 to 1.1% this year. Meanwhile, Qurate Retail Group, which owns QVC and HSN, drops out of the top 10.
“The softening apparel market is adding pressure to both Qurate and Macy’s, whose main product lines are made up of apparel and fashion,” Liu said in the eMarketer post. “As these two retailers struggle to meet the demands of consumers and fail to pull in new shoppers, we will see other retailers capitalize on their share declines this year.”
Amazon leads the list of U.S. ecommerce sales, with 38.7%, up from 37.3% in 2019. This year, Amazon will capture 4.6% of total retail sales (online and offline) in the U.S., eMarketer said.
Walmart is No. 2 with 5.3% market share, eBay No. 3 at 4.7%, and Apple checks in at No. 4 with 3.7% of total ecommerce sales. The Home Depot is No. 5 with 1.7% and Wayfair No. 6 with 1.5%. Best Buy is at No. 7 with 1.3%.