More chains report modest gains in Q2 sales

New York--More foot traffic and an increased focus on customer experience and the merchandise mix boosted second quarter results for Target, Walmart and T.J. Maxx’s parent company. 

Target Corp., Walmart Stores Inc., and The TJX Companies Inc. all reported an increase in comps and total sales, perhaps benefitting from the selective purchasing of consumers who continue to look for the best prices.

The three retailers’ sales results were on par with those reported by Nordstrom and J.C. Penney last week, and topped the results reported by Macy’s and Kohl’s. 

Highlights from the second quarter results recently reported by the three chains are below.

Target Corp.
Second quarter comps were up 2 percent for Target in the three-month period ended Aug. 1, driven primarily by growth in comparable transactions and strong traffic, the retailer said.

Same-store sales in signature categories--style, baby, kids, and wellness--grew three times faster than the company average, resulting in comps rising 4 to 5 percent in both home and apparel.

Target also reported that its online sales grew 30 percent, contributing nearly 1 percentage point to overall same-store sales growth and comprising 3 percent of overall sales.

Sales in the three-month period also were up 3 percent, increasing from $16.96 billion in the year-earlier period to $17.43 billion, reflecting both the rise in comps and sales from new stores. Sales in the half-year period also increased 3 percent, reaching $34.55 billion in the six months through Aug. 1.

By Aug. 1, Target was operating 1,799 stores, up just slightly from the 1,790 it had as of Jan. 31.

Walmart Stores Inc.
Same-store sales at Walmart increased 2 percent in the U.S. during the second quarter, driven in large part by an increase in traffic to the stores and despite a shrinking U.S. business, the retailer said.

Operating income in the U.S. was down 8 percent in the quarter to $4.8 billion, while net sales were up 5 percent to reach $74 billion. 

At Sam’s Club, U.S. comps excluding fuel were up 1 percent, and net sales without fuel were up 3 percent, even as operating income (excluding fuel) plummeted 10 percent during the quarter.

Total revenue for the company was $120.2 billion, or $124.5 billion on a constant currency basis.

Operating income for the overall Walmart Stores, Inc. also was down 7 percent (excluding fuel). The company noted that performance continues to be