Target's ecommerce sales cross $5 billion, while web sales at Kohl's grow a double-digit percent in Q4, the retailers reported Tuesday.

Ecommerce sales at Target Corp. increased 35.4% in 2018, the company reported Tuesday in its fourth quarter and fiscal-year 2018 ending Feb. 2 earnings results. This is the fifth year in a row Target’s online sales grew more than 25%, the retail chain says.

Target’s 2018 web sales of $5.35 billion accounted for 7.1% of the company’s total revenue in 2018, up from 5.5% in 2017. Total revenue grew 3.6% to $75.36 billion in 2018, up from $72.71 billion in 2017.

In the fourth quarter, digital sales accounted for 10.4% of total sales, or $2.39 billion, compared with 8.1%, or $1.86 billion, in Q4 2017. Total revenue remained flat year over year at $22.98 billion in Q4. Target is No. 17 in the Internet Retailer 2018 Top 1000.

Target’s ecommerce and omnichannel highlights in 2018:

  • Curbside pickup is available at nearly 1,000 stores. Target made almost 2 million parking lot deliveries last year.

  • Target says more than 95% of online orders are ready for pickup within one hour.
  • Stores fulfilled three of every four digital orders in Q4, which is “effectively doing the work of 14 fulfillment centers,” CEO Brian Cornell said. 
  • Fourth quarter operating income margin rate was 4.9% in both 2018 and 2017. Fourth quarter gross margin rate was 25.7%, compared with 26.1% in 2017. This decline reflected higher digital fulfillment and supply chain costs, partially offset by the benefit of merchandising strategies.
  • Target last week launched Target+, an online marketplace in which other merchants can sell on Target.com.
  • Since acquiring Shipt in 2017, Target has rolled out same-day delivery in more than 200 markets across 47 states. Shipt now delivers from more than 60 retailers.

Kohl’s Corp. (No. 18) also reported its full-year earnings on Tuesday. The company said ecommerce sales grew a double-digit percent in Q4 2018 ended Feb. 2, without providing specific figures or full-year figures. Total revenue declined 3.3% to $6.82 billion in Q4, down from $7.06 billion in Q4 2017. Revenue was up 0.7% for the year to $20.23 billion from $20.08 billion a year ago.

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Other Kohl’s ecommerce and omnichannel updates:

  • Mobile represented 70% of web traffic growth in 2018 and 50% of digital sales, CEO Michelle Gass said on a call with investors.
  • Store traffic to Kohl’s has increased thanks to a partnership with Amazon.com Inc. (No. 1) that allows shoppers to return Amazon orders in its stores, with the hope that they’ll shop while in store.
  • Stores fulfilled up to 40% of digital orders in 2018.
  • Amazon devices and Amazon-branded products will be sold in more than 200 Kohl’s stores this year.
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