Target reports a record year for sales

The pandemic drove Target to a record year of sales growth, as shoppers stocked up at its stores and bought online.

Target’s 2020 sales increased 19.8% to $93.6 billion from $78.1 billion last year, the company said Tuesday. Digital sales, which include home delivery and in-store pickup, increased 145%.

Target’s sales growth of more than $15 billion last year was larger than its total sales growth over the past 11 years combined.

“Following years of investment to build a durable, scalable and sustainable business model, we saw record growth in 2020,” Target CEO Brian Cornell said in a news release.

Target’s net earnings increased 33.1% to $4.4 billion last year.

Target’s stock has increased around 81% during the last 12 months. Its shares were flat during pre-market trading Tuesday.

The pandemic has created a stark divide in retail. It has lifted big box chains such Target, Walmart and Costco that have stayed open throughout the pandemic, as well as Amazon.

Meanwhile, department stores and mall-based retailers that were forced to close when the virus surged last spring have not bounced back. Target said it gained nearly $9 billion in market share last year from rivals.

Target did not release guidance for 2021, citing “continued uncertainty” from the pandemic.