Target Sees Spending on Rise, Margins on Decline

Target Corp. said that sales and profits were both up in the fourth quarter as consumers seem to be slowly increasing spending on discretionary items in the wake of the recession.

MINNEAPOLIS — Target Corp. here said Tuesday that sales and profits were both up in the fourth quarter as consumers seem to be slowly increasing spending on discretionary items in the wake of the recession.

The company also said it expects gross margins to be pressured this year by the rollout of expanded grocery offerings in its P-fresh remodels, however, and as it seeks to remain competitive with rival Wal-