Mixed Signals Here?

Saturday, October 25, 2008

Target to Open 45 Stores on Sunday

Minneapolis (October 10, 2008)

Target is gearing up for the opening of 45 stores on Sunday, including the debut of two new prototype stores in Minnesota and the company’s first two stores in Alaska, according to The Minneapolis/St. Paul Business Journal.

Target will debut its first new general-merchandise prototype in Waconia, Minn. Meanwhile, a new store in Otsego, Minn., features the company’s new SuperTarget prototype.

Each of the new models is certified under the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) program.
The report also noted that the new general-merchandise stores will be 132,400 sq. ft. in size, roughly 6,000 sq. ft. larger than the current model. The new SuperTarget stores will be 186,000 sq. ft.

Target plans to roll out the 2009 prototypes at more than 100 locations nationwide next year.

Target also will open its first Alaska locations this weekend. One of the stores is in Wasilla, the town where Alaska governor and Republican VP nominee Sarah Palin was mayor from 1996 to 2002. The other will be in Anchorage.
As of Sunday, Target will operate 1,685 stores in almost all 50 states, with the exception of Hawaii and Vermont. However, it has plans to enter Hawaii next Spring.

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Target Trims Store-Opening Projections

Minneapolis (October 24, 2008)

Target Corp. is cutting back on its 2009 store-opening plans amid the economic slowdown, the company said on Thursday.

"We are not happy with the current pace of our sales, and we are working diligently to drive our top-line performance," said CEO Gregg Steinhafel, speaking at an analyst and investor meeting broadcast over the Internet.

In August, Target reported its fourth straight quarterly profit decline even as Wal-Mart Stores saw profits rise from consumers seeking out bargains.

Target said on Thursday it has reduced its 2009 store-opening plans, canceling some projects that no longer make financial sense.

"We'll now open about 70 net new stores in 2009, and we know we will open fewer still in 2010, although it's a bit premature to speculate just how many," said CFO Doug Scovanner.

In August, Target said that for 2009, it was projecting adding about 70 to 75 net new stores.

Target also told analysts it is working to improve results in its credit-card business.

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