Earnings Preview: Target Corp.

NEW YORK (AP) — Retailer Target Corp. reports earnings for its third quarter on Tuesday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Target and other low-price retailers, particularly Wal-Mart Stores Inc., have benefited from consumers switching to cheaper stores and focusing on necessities. But at Target, where more than 40 percent of revenue has come from nonessentials like funky jeans and bed spreads, the cheap-chic formula that once was its strength has became a drag as shoppers focus on basics. Its profit also suffered from woes in its credit card business.

Target has reduced staff, tightened consumer credit card underwriting and pared down inventory to bolster profits.

To drive customer traffic, Target has focused on several initiatives. The chain has expanded its "low-price" promise in advertising and stores, matching competitors' local advertised prices on identical items. It also relaunched its Target Brand, which spans 40 categories including health and beauty, as Up & Up.

The chain, which late last year began testing new packaged perishable foods, plans to expand them to 100 new and remodeled stores by next month.