Target Sales on Rise

Target Corp. (Minneapolis) reported its fourth-quarter profit rose 54 percent, helped by increased holiday sales and groceries. Sales increased 3.7 percent in the fourth quarter to $19.7 billion, up from $19 billion in 2008, and same-store sales grew 0.6 percent. Net income rose to $936 million in the quarter ended Jan. 30, compared to $609 million during the same period last year.

“We're very pleased with our fourth quarter and full year 2009 financial performance, which reflect substantial innovation and disciplined execution by teams across the company,” says Gregg Steinhafel, chairman, president and ceo of Target Corp. “Fourth quarter retail segment performance was well above our expectations due to stronger-than-expected holiday sales, combined with well-controlled inventories and disciplined expense controls.

“In 2010, we expect our guest traffic trends and sales of discretionary categories to benefit from broader implementation of our new merchandise initiatives as well as a continued modest recovery in the economy, and believe Target will continue to gain profitable market share,” says Steinhafel.

The second-largest U.S. discount chain recently announced it expanding its grocery sections in more than 300 locations and will develop a smaller store format with an edited merchandise selection to reach customers in dense urban markets. The retailer also has its sights set on expanding outside the U.S., most likely in Canada, Mexico or Latin America.