7 Best Department Store Stocks to Buy Now

4. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 49

Target Corp (NYSE:TGT) operates general merchandise department stores that offer its customers a wide range of products. It has approximately 2,000 stores across the US. The company saw an increase in its traffic growth in fiscal Q3 2024. This growth was attributed to its focus on newness and delivering strong value in a retail environment where consumers are focusing on value and discounts over brand loyalty.

The company thus introduced over 2,000 discounts entering the holiday season after it received positive customer response to the thousands of discounts and deals it offered at the beginning of 2024. Therefore, this initiative is expected to drive similar sales growth in the crucial holiday season. Target Corp’s (NYSE:TGT) comparable sales grew in fiscal Q3 2024, and this growth was attributed to a 2.4% growth in traffic. This translates to over 10 million incremental transactions compared to 2023.

The company’s digital channel also grew by nearly 11% in fiscal Q3 2024, reflecting increasing consumer behavior trends in online shopping. Its delivery services are also boosting growth, with the company’s same-day delivery, powered by Target Circle 360, experiencing approximately 20% growth. Its Drive Up service also saw positive double-digit growth, accounting for over $2 billion in fiscal Q3 2024 sales. These trends show the strength of Target Corp’s (NYSE:TGT) digital services as more and more consumers are interacting with them.