Discount department stores Kmart and Target have revealed a rise in sales for the third quarter, bolstered by strong transaction growth in the apparel sector.
The results, confirmed by parent company Wesfarmers, were for the period ending March 31 2013.
Target reached total sales of $699 million for the quarter, 1.0 per cent above the previous corresponding period, with comparable store sales increasing 1.9 per cent.
According to the company, stronger sales performances in January in particular were buoyed by summer season apparel categories, with discounter clearance activity and the earlier timing of Easter also boosting sales.
Sales declines in electrical and entertainment categories continued over the period, with sales of DVDs, interactive toys and CDs in particular, affected by ongoing deflation.
Wesfarmers managing director Richard Goyder said sales growth at Target had been due to the success of key categories, including apparel.
“Following strong sales growth in January, trading in Target progressively softened during the balance of the quarter. Stronger apparel and toy sales offset continued difficulty conditions in electrical and entertainment categories,” he said.
Kmart, however, emerged the front-runner, delivering its 13th consecutive quarter growth in transaction and units sold.
Total sales jumped to $842 million for the quarter – 3.6 per cent above the previous corresponding period, with comparable store sales also up 3.0 per cent.
Commenting on the results, Kmart managing director Guy Russo said sales performance in the quarter was pleasing, with growth driven by continued improvements in everyday core ranges and inventory availability.
“Low prices have continued to drive volume, with in-store execution and greater product availability also contributing to sales growth in the quarter. Sales growth was achieved across all key categories, except entertainment which continues to decline,” Russo said.