Dayton Hudson Corp. To Expand Store Operations
MINNEAPOLIS (AP) _ Dayton Hudson Corp. says it will spend more than $500 million expanding its store operations during the 1985 fiscal year.
Most of the $500 million will go to Target, the upscale discount chain, and Mervyn’s, a California-based promotional department store chain, the company said Monday in its annual report to shareholders.
The company had said previously it planned to invest $3.2 billion in expansion of its retail operations between 1985 and 1989. About 80 percent of the investment will go to Target and Mervyn’s.
Dayton Hudson spent $397 million on capital investment in 1984.
The department stores, which generated one-fifth of Dayton Hudson’s revenues in 1984, posted a 31 percent decline on operating profit to $106.7 million last year. The company attributed the decline to fourth-quarter price- cutting to reduce inventories, fierce competition and higher-than-expected costs related to combining Dayton’s and Detroit-based Hudson’s into Dayton Hudson Department Store Co.
Officials announced that they plan to open 13 more Target stores, 21 Mervyn’s, one Dayton’s department store, and about 60 specialty merchandising stores in the coming year.
The company’s specialty operations include B. Dalton Bookseller, a national bookstore chain, and Lechmere, a New England-based retail operation.
There are also plans for additional stores in the company’s test operations, Pickwick Discount Books and RG. Branden’s.
Dayton Hudson operated 1,136 stores in 1984.