Target says Dec. comps in line with expectations

MINNEAPOLIS Target reported that its net retail sales for the five weeks ended Jan. 3, 2009 increased 0.2% to $9.3 billion from $9.26 billion for the five weeks ended Jan. 5. On this same basis, December comparable-store sales declined 4.1%.

"The decline in our December comparable-store sales was in line with our planned range, reflecting stronger results in the last two weeks of the month,” said Gregg Steinhafel, president and CEO of Target. "During the month we reduced prices to gain market share and to end the year with very clean inventories. These markdowns, combined with additions to our accounts receivable allowance, will put additional pressure on our profitability in the fourth quarter. We continue to focus on appropriately balancing short-term tactics with long-term strategy in ways that will preserve our brand, deliver a superior guest experience and fuel Target’s continued success."