Manhattan to Welcome First Target Store
New York City, Target is finally coming to Manhattan. The much-anticipated and long-delayed shopping center, East River Plaza, in East Harlem has changed its anchor store from Costco Wholesale Club to Target, according to a report by The New York Times. The publication said Target recently signed a lease for 135,000 sq. ft. and will serve as an anchor along with The Home Depot.
Target has six stores in the city boroughs, with two more under construction. The shopping center is scheduled to open in 2008.
Pathmark 2Q Loss Widens
Carteret, N.J., Pathmark Stores, Inc. reported a loss for the quarter ended July 29 of $8.8 million, compared with a loss of $5.1 million in the same period last year. Comp-store sales rose 0.5%, while net sales remained basically flat at $1 billion.
Results were negatively impacted by lower gross profit of $1 million, mainly due to lower pharmacy gross margin because of the new Medicare Part D program. Expenses also rose due to higher costs for utilities, self-insured workers’ compensation and general liability claims, and medical and pension plans.
Dollar General Posts Lower Profit
Chicago, Dollar General reported earnings for the quarter that ended Aug. 4 of $45.5 million, down 40% from $75.6 million a year earlier. Comp-store sales rose 3.2% in the quarter, while sales for the quarter rose 9% to $2.25 billion, helped by the addition of 466 net new stores. The company said fierce competition and a slowdown in consumer discretionary spending heightened uncertainty about the second half of the year.
Dollar General also reported that August same-store sales rose 4.8% and total sales for the four weeks that ended Aug. 25 rose 10.1% to $687.2 million.