Sep 4, 2008 9:17 am US/Eastern
Target Says Consumers Skimping On Food, Essentials
MINNEAPOLIS (AP) ―
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Target says health care and food items were the strongest sellers while more discretionary items such as apparel and home products were weaker.
Discount retailer Target Corp. said Thursday that August same-store sales fell 2.1 percent as consumers shopped cautiously, mainly for essentials like food.
The discount retailer says results were within its planned range, Analysts polled by Thomson Reuters, on average, expected a larger drop of 2.6 percent.
For the four weeks ended Aug. 30, total sales rose 3 percent to $4.85 billion.
A decline in the number of same-store transactions was offset by an increase in average transaction size, the company said in a recorded call.
Target says health care and food items were the strongest sellers while more discretionary items such as apparel and home products were weaker.
Jewelry and accessories were also soft. Back-to-school sales picked up speed late in the month, the company said.
The Northeast was the strongest geographic region, while the West and the South were the weakest. Target has recently stated it is expanding it's stores in the Southern California region.
Year-to-date, same-store sales edged down 0.8 percent, while total sales rose nearly 5 percent to $34.13 billion.
Minneapolis-based Target expects September same-store sales to be within the range of down 1 percent to up 1 percent, but says current and expected tropical storms could lead to greater volatility during the period.
Same-store sales, or sales at stores open at least a year, are a key measure of retailer performance, because they measure growth at existing stores rather than from newly opened ones.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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