Business

Target invests $4B annually to support the market share it acquired during the pandemic

Target will invest $4 billion annually over the coming years to open new stores and develop its existing stores, in addition to establishing its own supply chain in an effort to enhance the market share it gained during the coronavirus pandemic. The company’s statement comes after announcing a 21% rise in revenue for the holiday quarter after its 24-hour delivery and ready-to-store in-store services significantly increased demand for household goods, toys and groceries during the health crisis.

Target’s fourth-quarter earnings rose 58% to $2.67 per share, and its revenue flew 21% to $28.34 billion, while analysts had estimated that the company’s profits would rise 50% from the same period a year ago and reach $2.54 per share, in addition to revenue expectations of only $27.5 billion, and the company remains conservative about its expectations for the future, noting the uncertainty and stability caused by the pandemic. After the report, Target’s stock recorded a decline of 6.8% to close at 173.49, and its competitors Walmart and Costco declined by 1%, and as for the giant Amazon, its share also witnessed a decline of 1.6%.

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