Target Corporation (TGT), the operator of general merchandise and food discount stores in the United States, recently posted better-than-expected December sales buoyed by robust traffic count throughout the month.
Based in Minneapolis, Minnesota, Target delivered comparable-store sales of 1.8% for December, substantially up from a decline of 4.1% registered in the same month last year. However, year-to-date, comparable-store sales slid 2.7% compared to a fall of 2.9% in the same period last year.
By categories, apparel, electronics, toys, food, and health and beauty experienced an improvement in demand. However, sales of home decoration products remained sluggish at Target’s stores.
Net retail sales for December jumped 5% year-on-year to $9,741 million, whereas year-to-date, sales climbed marginally by 0.7% to $59,147 million.
Based on December data, the company now expects to report stronger-than-expected fourth-quarter results in the retail segment but warned of lower profitability in the credit card segment.
In a separate story, Target announced the buyout of the Smith & Hawken brand and other intellectual property from Smith & Hawken, Ltd, a subsidiary of The Scotts Company, effective December 30, 2009. The terms of the transaction were not disclosed.
Target already offers outdoor furniture, gardening and décor items under the ‘Smith & Hawken for Target’ brand available at its stores and online at Target.com since 2006.
Target, which currently operates 1,744 stores in 49 states, faces stiff competition from Wal-Mart Stores Inc. (WMT).
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