Target, formerly called Dayton Hudson Corp., was created by the Dayton department store family. Dayton's and Hudson's were converted to the Marshall Field's brand name several years ago.
Target has struggled to maintain sales and boost earnings at Marshall Field's and Mervyn's. The move to sell the department store chains has long been advocated by stock analysts and anticipated by investors.The move would allow Target to focus on its fast-growing discount store chain, where same-store sales rose 12% in 2003, the company says.
There are 1,249 Target stores in 47 states. Target says it hired Goldman Sachs Group Inc. to review options for the businesses.
Target's strategy of selling trendy goods has helped it compete with Wal-Mart Stores Inc. while talking sales from department stores and clothing chains.
Among possible buyers for either of the two chains are Federated Department Stores Inc. and May Department Stores Co.
Mervyn's was founded in 1949 and bought by Target in 1978, and last year posted sales of $3.6 billion and a pretax profit of $160 million. Marshall Field's was founded in 1852 and was purchased by Target in 1990. Target's department stores adopted the name of the more famous chain after the acquisition.
Mervyn's employs 29,000 people while Marshall Field's has 25,000 workers, the company reports. Target says it would pay severance to any workers who lose their jobs as a result of a sale.
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