A general merchandise retailer Target Corporation (TGT), has roughly 1,909 stores across the United States and operates 44 distribution centers. It sells its products through its stores and digital channels. On the other hand, e-commerce giant Amazon.com, Inc. (AMZN) engages in the retail sale of consumer products and subscriptions internationally. It operates through North America; International; and Amazon Web Services.
According to the Commerce Department report, Retail sales declined 1.9% in December, marking the steepest drop in 10 months due to surging prices and an acceleration in COVID-19 infections. However, overall 2021 retail sales were up 16.9% as many retail companies' solid online presence benefited them from online buying trends over the past year. Moreover, the increasing physical store sales with the reopening of the economy should help retailers thrive in the upcoming months. According to a Research and Markets report, the global retail market is expected to grow at a CAGR of 7.7% by 2025. Therefore, both TGT and AMZN should benefit.
