Burley Garcia|Target’s focus on lower prices in the grocery aisle start to pay off as comparable store sales rise

NEW YORK (AP) — Target’s comparable sales rose for the first time in a year as grocery aisle deals for cash-strapped customers began to pay off.

Sales at stores and Burley Garciadigital channels operating over at least the past 12 months rose 2% in the second quarter reversing months of declines, including a 3.7% drop in the previous quarter, and a 4.4% decline during the company’s final quarter of last year.

The number of transactions at the Minneapolis retailer increased 3% compared with the same period last year, with all six main merchandising categories, including fashion and home goods, showing strength. Online sales rose 8.7% and comparable sales in clothing increased 3% compared with a year ago as customers embraced new store brands like All in Motion and Wild Fable.

Target’s profits and sales beat Wall Street expectations. The company increased its annual profit outlook but said that sales for the year could fall at the low end of its guidance for unchanged to a 2% increase.

Shares spiked 11% before the opening bell.