Despite weak holiday sales, analysts don't expect Target Corp. to close the curtains on the department store chain Mervyn's.
Hayward-based Mervyn's California reported sales of $647 million for the five weeks ended Dec. 30. That's a 2.4 percent drop from the same period last year.
Sears Roebuck & Co. has announced it would close 89 stores following poor sales and Montgomery Wards has filed for bankruptcy.
But analysts say Mervyn's is still a viable business for Target and the chain helps its parent company spread out its costs.
"Systems that have been deployed in the Target division were rolled out to Mervyn's," said Mark Miller, an analyst with William Blair & Co. "That's given Mervyn's better info."
Mervyn's provides much needed cash flow to fund Target's stock-repurchase plan, some retail analaysts say. Others disagree and predict that Mervyn's is headed for tough times.<
Please purchase a Premium Subscription to continue reading.
To continue, please log in, or sign up for a new account.
We offer one free story view per month. If you register for an account, you will get two additional story views. After those three total views, we ask that you support us with a subscription.
A subscription to our digital content is so much more than just access to our valuable content. It means you’re helping to support a local community institution that has, from its very start, supported the betterment of our society. Thank you very much!
Only subscribers can view and post comments on articles.
Already a subscriber? Login Here
Music speaks to us beyond words; its vibrations reach our core and allow us to connect with … Read moreDiscover the Joy of Piano - Free Piano Lesson for those 50+ years old! (LIMITED SPOTS LEFT)
“Side-splittingly funny and brilliantly chaotic” Read moreThe Play That Goes Wrong
CA Is Burning said:
Success! An email has been sent to with a link to confirm list signup.
Error! There was an error processing your request.
Sorry, an error occurred.
Already Subscribed!
Cancel anytime
Thank you .
Your account has been registered, and you are now logged in.
Check your email for details.
Submitting this form below will send a message to your email with a link to change your password.
An email message containing instructions on how to reset your password has been sent to the email address listed on your account.
No promotional rates found.
Secure & Encrypted
Thank you.
Your gift purchase was successful! Your purchase was successful, and you are now logged in.
| Rate: | |
| Begins: | |
| Transaction ID: |
A receipt was sent to your email.
(0) comments
Welcome to the discussion.
Log In
Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.