Target posts single-digit Q1 loss

MINNEAPOLIS Target has released the financial results of its first quarter 2008, which showed that profits decreased by 8 percent, according to the Associated Press.

The company reported a profit of $602 million for the three months that ended on May 3, down from $651 million during the same period last year. Revenue though did rise by 5 percent to $14.8 billion.

In response to this, Target is now trying to emphasize the “pay less” part of its “Expect More, Pay Less” slogan. The company is focusing on reaching out to consumers through its advertising to make them aware of sale prices as well as sale items located at the end of its stores aisles.

According to Target president and chief executive Gregg Steinhafel, “We’re just very mindful that the consumer is very cash-strapped right now and is looking for good values. They’re looking for more sale merchandise, and we are responding.”

In terms of the rest of the year financially for the company, chief financial officer Doug Scovanner said, “Our topline growth will likely remain sluggish until we see some stability or improvement in the economic environment.”

Target though is continuing with its plans to open 90 to 100 new stores this year, according to Steinhafel.