Expansion In Food Departments Gives Target A Boost

NEW YORK (AP) — Target Corp. is projecting a merry holiday as the discounter counts on a 5 percent discount for its credit and debit card customers and its storewide remodeling

The upbeat report comes as Target reported a 22.6 percent increase in third-quarter net income, helped by improvements in its credit card business and expansion into food.

The cheap chic discounter said it expects a key revenue measure to rise more sharply than it has in any period in the last three years as it reaps the benefits of its new 5 percent discount offer for those buying with its branded credit card or debit cards. The store remodels feature an expansion of fresh food as well as brighter lightening in cosmetics and better shoe displays.

The projection means fourth-quarter revenue at stores open at least a year would top the 2.8 percent increase seen in the first quarter. Target also said it expects the holiday quarter's profits to match Wall Street estimates.

The report follows Wal-Mart's third-quarter results, released Tuesday, which showed its sixth consecutive quarter of declines in revenue at stores open at least a year. Wal-Mart says it expects the holiday quarter will show an increase, but many analysts say it might be a stretch given so much stiff competition, including from dollar stores.

To read the rest of the story, please go to: Associated Press.