by Bill French, Cushman & Wakefield
Target Corporation announced healthy sales growth for Q3 2018 with net income growing to $622M or $1.17 per share versus $478M or $0.87 per share in the period one year ago. This included a same store sales increase of 5.1% with comparable traffic growth of 5.3%. Same store sales growth is one of the most telling measures of a retailer’s success!
For years we have heard that retail is dead but I profess that retail is alive and growing!
TJX Companies owner of TJMaxx, Home Goods, Marshall’s and other amazing concepts is one of the hottest retailers on the planet today. TJX saw income grow 19% for Q3 2018, which even excluded a $0.09 per share benefit for items related to the 2017 Tax Cuts and Jobs Act. Same stores sales rose by 7%: topping the estimates of many analysts. Let me tell you 7% is like pitching a no hitter or hitting a three to win the NBA championship at the buzzer!
Walmart saw sales rise 3.4% with earnings $0.07 per share above the Wall Street estimates. Even Best Buy saw same store sales rise 3.4% during the Q3 2018.
Q3 2018 has been strong for many retailers and Q4 2018 looks to be even better. Yes, retail sales at bricks and sticks locations are doing well and despite popular belief, not all retailers are going out of business because of the internet. Actually, the internet is assisting them in many ways. Look for more articles to come on retail, bricks and sticks and the internet!