), the operator of general merchandise and food discount stores
in the United States, registered a 3.1% increase in its
comparable-store sales (comps) for Jan 2013, surpassing analysts'
Results also improved sequentially as Target registered flat
comps in Dec 2012. The company stated that the rise in
comparable-store transactions and increase in average transaction
size boosted the results.
With consumers regaining confidence, Jan 2013 was strong on
the whole for most retailers, with other players including
) registering comps growth of over 10%.
Category wise, Target reported solid sales in Food and Health
and Beauty, both rising in the mid-single digit, while apparel
and hardlines witnessed sales decline.
Net retail sales for this Zacks Rank #3 (Hold) company jumped
29.6% to $6 billion in Jan 2013 from $4.6 billion reported in the
year-ago period. Quarter-to-date and year to date, net retail
sales increased 6.8% and 5.1% to $22.4 billion and $72 billion,
respectively, while comps increased 0.4% and 2.7%,
Going forward, the company plans to introduce a new section
dedicated to grocery at its stores as part of its P-fresh remodel
program, which facilitates the company to sustain sales momentum
and continue to drive traffic through fresh offerings and
enhanced customer shopping experience.
Alongside, Target is seeking promising expansion opportunities
in international markets such as Canada and Latin America and
revealed its plans to introduce smaller-format stores called
CityTarget. Moreover, Target announced its year-round price
matching policy with the aim of offering its patrons the facility
to match the prices being offered by online retail giants.
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