(For more retail coverage, click GlobeSt.com/RETAIL.)

MINNEAPOLIS-Target Corp., which expects an intensely competitive holiday season ahead, told investors in a conference call yesterday that it is poised to respond quickly to price-cutting by competitors. Company officials also announced that Target has expanded its presence across the US with the opening of 59 new stores, and has introduced several new in-store initiatives during the third quarter, which ended Oct. 29.

“Fourth quarter is always a very competitive timeframe, and this year we expect more of the same,” said Gregg Steinhafel, president, “Wal-Mart takes a generally very aggressive stand in small appliances, toys and electronics. We respond aggressively so that we are competitively priced on like items in like markets. As we get deeper into the holiday season, we expect to experience more price-cutting and we will respond as quickly as we possibly can to make sure that our prices are in line.”

This fall Target followed Wal-Mart’s cost-cutting lead and began offering generic drugs for $4 in several markets across the country. Company officials say they expect this program, which currently applies to the sales of more than 300 generic drugs in 27 states, to have little impact on the bottom line. “We believe that the price reduction in the generics will at least be offset by the increase in traffic that we will get through the prescription transfer and the sale of other over-the-counter products,” Steinhafel said.

Target, which experienced a 4.6% increase in comparable store sales during third quarter, expects another mid-single-digit increase in comparable store sales in the fourth quarter. Standout categories in the third quarter were infant and toddler basics and apparel, men’s and boys’ apparel, healthcare and food.

Third quarter store openings after closures and relocations resulted in 36 new discount stores and 14 new Super Targets. The company currently operates 1,494 stores in 47 states. In-store initiatives introduced during the quarter include contract cell phones by T-Mobile and Verizon Wireless, extended service plans for other consumer electronic products, and a new home collection called Perfect Pieces. Target also expanded its Archer Farms food brand and was designated as a certified organic retailer.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.