Target ready for holiday shopping season with increase in 3Q sales
MINNEAPOLIS — A 2.9% third-quarter same-store sales increase and the sale of its credit card business pushed Target’s third-quarter profit up 17.6% to 96 cents a share.
Total sales increased 3.4% to $16.6 billion in the third quarter due to the 2.9% comp increase and the benefit of a net increase of 18 stores compared to the prior year. Target ended the period with 1,781 stores and was up against a challenging prior year comparison when comps advanced 4.3%.
"We’re pleased with Target’s third-quarter financial performance, which reflects superb execution across each of our business segments," said Gregg Steinhafel, chairman, president and CEO of Target. "We are well-positioned to deliver strong fourth-quarter performance by offering compelling merchandise and unbeatable value through initiatives like the Target/Neiman Marcus Holiday Collection, 5% REDcard Rewards and our new Holiday Price Match, which allow our guests to shop at Target with confidence throughout the holiday season."
Earnings per share increased 17.6% to 96 cents from 82 cents, but that figure includes a 15 cent benefit from the pending sale of the company’s credit card receivables portfolio and expenses related to next year’s entry into Canada. On an adjusted basis, excluding the impact of expenses related to Canada, earnings per share increased 4.3% to 90 cents from 86 cents.
Meijer features U.S.-made toys on website
GRAND RAPIDS, Mich. – Two new wooden toys that won a contest sponsored by Midwestern mass merchandiser Meijer will be featured exclusively on the retailer’s website, the company said Thursday.
Meijer announced the winners of the Meijer Next Great Toymaker contest: Franklin, N.C.-based Circa Toys’ Wagon of Blocks and Goshen, Ind.-based Peters’ Group’s Stick & Stack Cozy Cabin. The Wagon of Blocks, which sells for $69.99, is designed for children ages 1 to 3 years, while the Cozy Cabin, at $44.99, is for children ages 4 to 8 years.
"Meijer is excited to announce these exclusive additions to our huge online selection of nearly 8,000 toys," Meijer VP e-commerce Liwanag Ojala said. "We believe the U.S. heritage of these toys, along with their classic style and quality craftsmanship, will be a winning combination for our Meijer.com shoppers this holiday season."
The contest was open to small toy companies and entrepreneurs in the United States with 50 or fewer employees. Winners were chosen by a panel of Meijer judges and scored on uniqueness, educational relevance, creativity and quality. Toys will be available for at least six months on Meijer’s website starting on Thursday.
Ahold appoints James McCann as COO of Ahold USA
AMSTERDAM, the Netherlands — Royal Ahold has appointed a new COO for its U.S. subsidiary, the company said Thursday.
Ahold, based in the Netherlands, announced that it had appointed James McCann as COO of Ahold USA, effective Jan. 1, 2013, replacing Carl Schlicker, who has announced his retirement. McCann, a 43-year-old native of the United Kingdom and currently Ahold’s chief commercial and development officer who will continue as a member of the company’s corporate board, began working for Ahold in 2011.
"I am very pleased that we have a strong leader for Ahold USA from within our own organization," Ahold CEO Dick Boer said. "Since his start with Ahold, James has focused on strengthening our e-commerce proposition and customer loyalty programs as part of the company’s robust growth strategy that was launched last year and is now being implemented. This appointment is a natural step for James. With his international experience in leading roles at global retailers, James is very well-qualified to take on this important role within Ahold."
McCann has previoiusly worked for European retailers like Tesco, Carrefour France and Sainsbury’s.