Target: some categories, including home, stabilizing
Dror Benshetrit designer collection to launch next month
-- Home Accents Today, 5/21/2009 1:06:00 PM
Same-store sales at Target are stabilizing and were "not nearly as negative" as the final half of 2008, CEO Gregg Steinhafel told analysts during May 20th's quarterly conference call. "By stability we’re referring to the fact that our same store sales have been consistently in the mid single digit decline range. Some of the hardest hit states are still underperforming the average of the chain but they are not nearly as negative as they were in 2008 and in particular the third and fourth quarter."
Steinhalf said most retailers, Target included, have managed to reset their inventory levels, better balancing their receipt flow with sales. "We're experiencing somewhat of a more normalized environment, the environment that we have typically experienced throughout 2007 and the first part of 2008. So, it’s still competitive and people are aggressive and there’s a fair amount of promotional activity but it is not at the same levels of intensity and the deep discounts and the additional pages and broadcast levels that we were experiencing in the fourth quarter in particular last year."
In the home category, merchandising VP Kathryn Tesija said Fieldcrest and Dwell Studio continue to perform strong, and that in June the retailer will release a new designer collection, the limited edition Dror for Target collection, more than 30 items in bedding, home accessories and stationery from designer Dror Benshetrit.
"His products are intuitive and easy to use designs, they’re enhanced by whimsical patterns, rich colors and unique shape," Tesija said. "The collection includes multifunctional and transformative items such as a bookcase that can be used in many different configurations, reversible bedding and a mirror that can hang on a wall or stand on a desk."
Tesija said that sales of Target-branded health, beauty and household items have grown at a compound annual rate of 25% over the past five years. “With families eating out less and staying home more we’re seeing some of those categories pop in home, cookware or pantry ware, things of that nature that allow them to do more cooking at home or entertaining of their friends."
To view the complete transcript from yesterday's conference call, go to www.seekingalpha.com, or click here.
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