Good news for Target this morning. The retailer reported that sales increased in April, compared with last year. Net sales for the month were up 4.5 percent. Even same-store sales (which excludes stores open for less than a year) perked up 0.3 percent.
I wonder if it has anything to do with this development reported by the Associated Press: “Frugality fatigue is setting in,” it reports. After fretting and reining in our spending for several months, many of us are realizing we just can’t not spend our money.
Target doesn’t detail what’s selling, but it’s not just items on sale. The company said margins were stronger because it didn’t need to resort to as many price markdowns as it expected.
Overall for the first quarter, CEO Gregg Steinhafel said stores are performing “significantly better than expected” and credit card delinquencies aren’t any worse than the company expected.