Target’s clothing division has had positive growth, but the company’s home furnishings and décor division is still trailing behind.
The first half of the fiscal year ended on August 3, with an almost 5% decline in home sales to $7.4 billion. Bed and bath, home decor, office/school supplies, storage, kitchenware, small appliances, party supplies, furniture, lighting, home improvement, and seasonal goods are all included in this section.
The fall came on top of a 12.4% decrease in the first six months of 2023. Target has not seen a rise in first-half sales in this category since 2021, when the retail category was still being supported by spending driven by the epidemic.
During the first half of this year, just two segments had a fall in sales year over year: home furnishings and décor. The other category, hardlines, had a 4.3% decrease and included electronics, toys, athletic goods, entertainment, video games and consoles, and baggage.
One encouraging development is that, compared to the $6.46 billion first half of 2019, the first half of this year’s home sales were up a healthy 15.0%.
Sales of furniture and décor in the most recent quarter fared somewhat better, declining by just 1.2% to $3.9 billion. During Target’s quarterly investor call last month, officials said that the top categories within the home were throw pillows, candles, and decorative accessories at value prices.
“As they diligently oversee their family budgets, consumers persist in prioritizing value,” stated Brian Cornell, the CEO and chair. “We’re going to keep up the offensive,”
