Target Unloads Marshall Field's

Updated from 5:25 p.m. EDT

Target(TGT Quote) took a big step into the 21st century Wednesday, striking a deal to sell its long-underperforming Marshall Field's chain and setting a plan that could return most of the proceeds to shareholders through a stock buyback.

Target sold 62 stores, three distribution centers and $600 million in credit card receivables to May Department Stores(MAY Quote) for $3.2 billion. It simultaneously announced a plan to buy back up to $3 billion of stock over the next three years.

Target shares jumped $2.25, or 4.9%, to $47.88 in after-hours trading after closing the regular session down 57 cents, or 1.2%, at $45.63. ...