Target considers sale of department stores
US discounter may sell underperforming units.
March 11 2003
US discount retailer Target Corporation is considering sell its underperforming department store chains, Mervyn’s and Marshall Field’s.
Target has hired investment bank Goldman Sachs to review strategic alternatives for its business, including the possible sale of one or both department store chains.
The Target store chain which is the second-placed US discounter behind Wal-Mart, has been growing market share.
However as the discount sector has prospered, US department stores have found sales harder to come by.
Target chairman and CEO Bob Ulrich said: “As responsible stewards of the corporation’s assets, we believe that it is appropriate at this time to identify and evaluate possible strategic alternatives.”
The company said the review is still in its early stages and it is not certain that any sales will result.
Target operates 1,249 Target stores, while Marshall Field’s operates 62 stores, and Mervyn’s, a mid-priced chain, has 266 stores.
