TARGET OUTLINES SEASONAL FOOD PROMOTIONS 2004-11-15 (1)

MARK HAMSTRA

MINNEAPOLIS -- Target Stores here last week said it would promote several food items this holiday season as part of its overall fourth-quarter push.

Included among the seasonal food offerings at the company's SuperTarget stores will be turkey and ham dinners for six, complete with side dishes, for $39.99; and 12-inch lattice-top apple pies for $6.99, the company said during a conference call with analysts discussing third-quarter results.

"To reinforce our unique brand promise of differentiation and value at SuperTarget, 'Eat well -- Pay less' has become the cornerstone of our communication with guests," said Gregg Steinhafel, president, Target Stores.

He said the company has also lined up some exclusive food promotions with manufacturers for the holiday season. Included are a "Frango" cheesecake from the Cheesecake Factory, gift items from Swiss Colony, Betty Crocker and Ghirardelli chocolate cookie kits, and collectible six-packs of eight-ounce bottles of Coca-Cola.

Other holiday-themed food items will include chocolate fondue for two, heart-shaped candy-cane wreaths, and marshmallow ornaments.

Steinhafel also said the company's private-label food items are performing well.

This year, Target rolled out new packaging for both its Market Pantry and Archer Farms labels. Also, it more than doubled the number of items bearing the Market Pantry label, while boosting the Archer Farms offerings by more than 50%.

Responding to a question from analysts, the company said its same-store sales at SuperTarget stores remain on par with those of its traditional discount stores.

In the third quarter, Target reported overall comparable-store sales growth of 4.5%. Net income, boosted by the sale of its Mervyn's department store chain, increased 77.8%, to $537 million, on an 11% gain in revenues, to $10.91 billion.