Discounts and sales events have remained a significant sales driver, as consumers emerge from a more than two-year stretch of high inflation. It’s unclear how much those deals will cut into Target’s and other retailers’ profit margins, and whether sales will keep improving if promotions fade away.

Sales for the 2024 holiday shopping season turned out to be robust and better than expected, as easing inflation on merchandise drove shoppers to buy, according to the nation’s largest retail trade group.

Target raised its holiday-quarter comparable sales forecast on Thursday, buoyed by robust shopper demand for clothing, toys and beauty products during November and December, but profit margin concerns sent its shares down nearly 3%.

Target leaned in heavily toward promotions and sales during the holidays, a strategy that seems to have left it in the middle of the pack of retailers for the season. The Minneapolis-based retailer said Thursday its comparable sales rose about 2%,

Target reported strong holiday sales on Thursday, giving its stock a boost. The retail chain said sales increased 2% on a comparable basis in the last two months of 2024 from a year earlier, and overall sales rose 2.

Target on Thursday said its holiday sales were better than expected, though it kept its profit forecast the same – likely because cost-conscious shoppers stocked up on discounted items. The Minneapolis-based chain said sales on Black Friday and Cyber Monday hit records,