US-based retailer Target Corp plans to sell fresh produce in 100 of its stores by the end of this year, according to a report by The Glendale New Press.
“We have seen success with the stores that we have tested it in, and so we have rolled it out more broadly because we have seen that our guests have liked the convenience,” spokeswoman Hadley Barrows told the newspaper.
However, the company added that the produce sections as a way to make its stores more of a one-stop shop, although its offering will not be a substitute for a full-service grocery store.
“This is just a way for us to offer added convenience for our guests by providing fill-in food so you can supplement your weekly trip to the grocery store with fill-in goods,” explains Ms Barrows.
Target also yesterday (Tuesday 17 November) reported a “strong” third-quarter performance but said it remains “cautious” about the fourth quarter.
Nnet earnings for the third quarter ended 31 October 2009 rose to US$436m, compared with US$369m for the third quarter ended 1 November 2008.
Earnings per share in the third quarter increased 18.6 per cent to US$0.58 from US$0.49 in the same period a year ago.
Sales grew by 1.4 per cent to reach US$14.8bn in 2009 due to the contribution from new store expansion, partially offset by a 1.6 per cent decline in comparable-store sales.
Retail segment earnings before interest expense and income taxes (EBIT) were US$791m in the quarter, up 2.4 per cent on 2008.
“We’re very pleased with our third quarter earnings performance, which reflects strong execution and a commitment to continued innovation by teams throughout the company,” said Gregg Steinhafel, Target chairman, president and CEO.
“In light of the current and projected economic environment and expectations for a highly promotional holiday season, Target remains cautious about fourth quarter performance and is planning conservatively in both business segments.”
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