Target Corporation (NYSE: TGT) announced that, effective in late July, it will close nine locations in the Twin Cities market currently operated as Mervyn's stores. The locations are being sold to The May Department Stores Company. These nine Minnesota stores are the only locations affected. Mervyn's is a promotional, middle-market department store, based in the San Francisco Bay area with 266 stores in 14 states, primarily in the west and south. In 2003, Mervyn's generated $3.6 billion in revenue and $160 million in pretax segment profit.
Mervyn's employs approximately 780 team members in Minnesota. All team members affected by the store closings will be eligible for severance pay, based on length of service. Many of the affected team members will have an opportunity to interview for open positions at Target stores within the Twin Cities market or to transfer to other Mervyn's locations outside the Twin Cities area.
Target Corporation announced in March that it was undertaking a strategic review of Mervyn's, including, but not limited to, the possible sale of Mervyn's as an ongoing business to an existing retailer or other qualified buyer. This review is continuing in line with its expected timetable, and additional information regarding this review is expected to be available within 60 to 90 days.
Information regarding the sale of Marshall Field's to The May Department Stores Company is contained in a separate release.
In addition to Mervyn's and Marshall Field's, Target Corporation operates Target Stores, a large-store, general-merchandise, discount format consisting of 1,249 stores in 47 states, as well as an on-line business called target.direct.
Forward-looking statements contained in this release should be read in conjunction with the cautionary statements in Exhibit (99)C to the company's 2003 Form 10-K.
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