Fitch: Target's outlook still stable - Minneapolis / St. Paul Business Journal:

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Chicago-baesd Fitch also affirmed its debtand issuer-default rating s for the Minneapolis retailer. “Thr ratings and outlook reflect Target’s disciplined execution of its business strategy ofofferinh value-oriented merchandise, which should help the company achieved long-term profitable growth,” Fitch said in a “The ratings also consider Target’s high percentag of real estate ownership and prudent financialk strategy.
This is balanced by declining comparable-storew sales resulting from a decrease in consumer higher charge-off rates in the creditf card business and intense competitionn in the discounter Target has generally farefd worse in the downturn than ; frequently cited reasonsz include Target’s heavier emphasisa on less-essential housewares (vs. Wal-Mart’s food items and stapleas like soap) and a perception that it’s not as price-conscious as its Ark.-based rival. Target is .
Fitch’s comment on Target’s real-estatee ownership (the retailer likes to own its storese ratherthan lease, as it givese greater control over operations) comes after activist investor Williajm Ackman lobbied the companyy to spin off its real estatr holdings to a real-estate investment trust (or arguing that doing so would help Target’s shares. Ackman, whosew Pershing Capital owns about 10 percentof Target, indicatex he’d continue to pursues the matter next year after being rebuffed by Targeg management, who called the proposal too Target (NYSE: TGT) shares were up $1.30, or about 4 percent, to $33.321 in afternoon trading on Wednesday.