WEST POTTSGROVE PA – The Target store expected to open this summer in the Upland Square Shopping Center, at the intersection of Route 100 and State Street, will be one of a shrinking breed, its owner disclosed Friday (March 13, 2009).
Target Corp., in a filing with the federal Securities and Exchange Commission (SEC), said it planned to open about a third fewer new stores during 2009 than it did in 2008. The decrease is one way Target can conserve cash, the Minneapolis-St. Paul Business Journal reported.
Retailer Target, which is headquartered in Minneapolis MN, opened 114 new stores nationwide last year. It plans only 75, including the Upland Square location, this year, Target told the SEC. Its West Pottsgrove site falls within the Pottsgrove School District, which stands to benefit from additional real estate tax revenues Target and the rest of the shopping center will generate.
In its SEC filing, Target said it expected same-store sales in coming months to fall by mid-single digits, or somewhere between 4 and 7 percent. In addition, Target said, sales of its higher-end products, like clothing, probably will lag behind those of cheaper goods. Finally, the company estimated it would have to write off about $600 million in uncollectable credit card debt by the end of its second fiscal quarter.
All those factors, the Business Journal reported, compel Target to rein in its expansion plans. Even with a decrease in new stores, the Business Journal said, the company will spent between $2 billion and $2.5 billion on capital investments this year.
Photo by Tortuga One from Flickr