Target’s Q2 sees growth in comps, digital sales
MINNEAPOLIS — Target is meeting its goals and achieving steady growth, according to the Q2 results the company reported Tuesday. Target reported net sales of $17.4 billion, up 2.8% over the same period last year.
The company also announced that its comparable sales growth of 2.4% was in line with its expectation, and that comps in its style, baby, kids and wellness sections grew this quarter at rates three times higher than the company’s average. As a result, Target saw a growth in comps of 4%-5% in home and apparel.
“We’re very pleased with our second quarter financial results, as traffic growth, strong sales in our signature categories and continued expense discipline drove better-than-expected profitability,” Target chairman and CEO Brian Cornell.. “While the momentum in our financial results is encouraging, we have much more to accomplish.”
Cornell took the reins at Target in August 2014, and since then he has sold the company’s struggling pharmacy business to CVS Health, reshuffled several c-suite positions and ended Target’s Canadian operations — and Cornell’s efforts seem to be paying off. Q2 saw an increase in digital sales of 30%, which played a factor in the comps growth this quarter. And though the erstwhile Target Canada saw after-tax losses of $20 million, that number is significantly smaller than the $157 million it faced in losses or the same period last year.
The focus now for the retailer is continuing its efforts as the holidays approach.
“Looking ahead, we are focused on making further progress against our strategic priorities and are committed to improving operations as we move through the important back-to-school, back-to-college and holiday seasons,” Cornell said.
Synergies from Walgreens Boots Alliance merger results in 370 corporate job cuts
CHICAGO – In the coming week as many as 270 Chicago-area Walgreens Boots Alliance executives will be let go as part of 370 corporate jobs that are being eliminated nationwide. The other approximately 100 positions are scattered across smaller offices in nearly 20 states.
"We are realigning our business and reorganizing our corporate structure as we adapt to the fast changing health care and retail market," Walgreens spokesman Michael Polzin released in a statement. "These corporate support office changes will allow us to reduce management layers, phase out certain functions and consolidate similar job functions within the company."
The information technology department will be the hardest hit as it undergoes "a significant restructuring to better match resources with priorities," Polzin said.
The cuts are part of Walgreens' ongoing restructuring and cost reduction plan announced a year ago, Polzin said. "Impacted employees will be notified throughout the rest of the month. All of the affected employees will be provided or offered severance packages, and will be given 60 days’ notice," he added.
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