Target July revenue figure rises 2 percent

Discount store operator Target Inc. said Thursday an increase in customers and higher food sales helped July revenue in stores open at least a year rise 2 percent.

But the company's results fell just short of analyst expectations of a 2.3 percent increase, according to a Thomson Reuters poll.

Total revenue for the four weeks ended Aug. 1 rose 4 percent to $4.59 billion.

Target has been adding a format called PFresh to some stores that combines fresh food like produce and meat with grocery items.

Strong food, household and beauty product sales were coupled with weak electronics, video games, music and movie sales. The average total purchase per customer shrank, but more customers bought items.

Strongest regions were the upper Midwest and the Mid-Atlantic states, while California, Arizona and New Mexico were weaker.

Revenue at stores open at least a year is a key indicator of a retailer's performance because it excludes growth at stores that open or close during the year.

The company, based in Minneapolis, expects August revenue in stores open at least a year to rise in the mid-single digits.

Target's sales took a hit in the recession as shoppers seeking lower prices turned away from its cheap-chic products. But the company has seen some improvement in recent months.

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