MINNEAPOLIS — Target Corp. here said yesterday it has been “very pleased” with the enhanced assortments of dry grocery, frozen foods and dairy products, plus the addition of meat and produce, at two general merchandise store locations and plans to include those elements in most new and remodeled stores.
“We continue to be very pleased with the sales of that concept, the look, the feel, the assortment,” Greg Steinhafel, president and chief executive officer, said during a conference call with analysts to discuss financial results for the fiscal year that ended Jan. 31. “We’re still making some changes, but that [approach] seems to perform well enough to introduce it as a prototype element in the majority of new stores going forward.”
Net income for the year fell 22.3% to $2.2 million, while sales rose 2.5% to $629 billion. Same-store sales dropped 2.9%. For the fourth quarter, net income declined 40.8% to $609 million, while sales fell 1.6% to $19 billion and same-store sales dropped 5.9%, reflecting “a fundamental change in consumer spending patterns that negatively impacted both our traffic and sales,” particularly in higher-margin discretionary categories like seasonal, apparel and home, Steinhafel explained.
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