MINNEAPOLIS -- Target Corp. here said last week it has begun testing dollar sections at its discount stores.
During a conference call with industry analysts to discuss results from the fourth quarter and fiscal year ended Jan. 31, Greg Steinhafel, president of the company's Target Stores division, said the dollar sections -- called One-Stop -- occupy small areas near the front of Target units where they are being tested.
Steinhafel said they offer a range of general merchandise items, each priced at $1. He added that the experimental sections have not been open long enough for the company to comment on their sales results.
He also noted that the 24 SuperTarget stores the company opened in 2003 accounted for 30% of its growth.
Asked about the financial performance of the SuperTarget units, Steinhafel replied, "At the end of the day, they behave in virtually identical fashion" as regular Target discount stores.
In the 12-week quarter, net revenues rose 10.7% to $15.6 billion, comparable-store sales grew 4.9%, net income increased 21.1% to $832 million, and earnings per share were 91 cents, vs. 75 cents in the last year's fourth quarter.
For the fiscal year, net revenues were up 9.7% to $48.2 billion, comparable-store sales rose 2.9%, net income rose 11.4% to $1.84 billion, and earnings per share were $2.01, vs. $1.81 in the previous fiscal year.