Dry groceries, intimate apparel and hosiery selections are also slated for expansion, said Greg Steinhafel, president, during a conference call Thursday. Two-thirds of the current 1,444 US stores will have food, he said. In some cases home improvement, sporting goods and men's departments will be downsized to accommodate more groceries, a category that encourages increased store visits.

Net earnings for the quarter ended July 29 reached $609 million, up from $540 million in the same quarter a year ago. Total revenues in the most recent quarter were just north of $13.3 billion, "driven by new store expansion, a 4.6% rise in comp-store sales and the contribution from our credit card operations," said Bob Ulrich, chairman and CEO.

In a report following the Target conference call, Richard Hastings, VP and senior retail sector analyst for Bernard Sands, wrote, "Target's bottom line growth remains highly dependent upon its credit card business, without which Target shows mediocre growth. . . . The style and design edge that made Target an innovator five years ago is losing its luster, leaving them vulnerable to Wal-Mart on household and consumables and groceries; fashion soft lines at J.C. Penney and Kohl's; and the national rollout of Macy's, which is generating a big wave of promotional advertising and local market interest."