That's according to Gregg Steinhafel, Target Stores division president, who spoke of the discounter's expansion plans earlier this week on a conference call with analysts andinvestors. Target has 1,409 stores in 47 states, including 1,081 Target stores.

The Minneapolis-based retailer said earlier this week that its net income climbed 36% to $345 million, or $0.38 a share--beating consensus expectations by $0.02 and the same quarter a year ago by a dime. Revenue for the period ended May 4, including credit-card fees, increased 15% to $9.59 billion.

But analysts were encouraged with the performance of SuperTargets, which include a grocery store component, and which are seen as a critical driver for the company's future, says Lauri Brunner, a securities analyst at RBC Capital Markets. Target officials say last year's new SuperTargets were better than the first year performance of SuperTargets opened in previous years--exactly "what we wanted to hear," Brunner said.