Target’s online sales skyrocket as shoppers stock up from their homes

(Reuters) – A surge in digital sales for U.S. retailer Target Corp in March and April offset the bulk of damage done by coronavirus lockdowns to in-store sales, but its margins continue to suffer along with profitability from the costs of adjusting, it said on Thursday.

The big box retailer said digital comparable sales have surged over 275% so far in April, with several days in the month recording more online sales than Cyber Monday, traditionally the busiest day for e-commerce companies.

However, the company expects first-quarter profit to suffer from a 5 percentage point drop in margins due to temporary wage increases of $2 an hour for store and distribution center workers as well as higher sales of low-margin products such as groceries. The company now plans to pay higher wages until May 30.

(Reporting by Uday Sampath in Bengaluru; Editing by Anil D’Silva)