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BUSINESSWednesday 16 September
Wall Street posts solid gains a day
before crucial Fed meeting
STEVE ROTHWELL tion. A New York Fed survey bit more stability.” Target CEO Brian Cornell poses for a photo at the CityTarget
AP Business Writer showed that factory activi- The stock market has re- store in Boston. The store that’s near Fenway Park is part of Tar-
NEW YORK (AP) — U.S. ty in New York state sank for covered some of its losses in get’s effort to tailor merchandise to local preferences.
stocks rose sharply on Tues- a second straight month in August and early Septem-
day, a day before the start September. ber, but is still down from its (AP Photo/Michael Dwyer)
of a crucial Federal Re- “It’s almost as if the market peak of the year as traders
serve meeting. believes the Fed isn’t going and investors fret about the Going Local: AP chats with
Policymakers at the U.S. to do anything on Thurs- possible impact of slower Target’s CEO Brian Cornell
central bank will convene day. That’s why people are growth in China and other
a two-day meeting on bidding it up,” said Kevin emerging markets. The S&P A. D’INNOCENZIO spoke to The Associated
Wednesday and may de- Mahn, Chief Investment 500 has dropped 7.2 per- AP Retail Writer Press at the Boston store:
cide to raise interest rates Officer at Hennion & Walsh cent from its record close BOSTON (AP) — Target is --Why is this store unique?
for the first time in close to Asset Management in New set in May. going local. It’s a great example of lo-
a decade. Jersey. “However, I do be- Despite the bounce Tues- The liquor section in its new calized marketing, local-
Opinions are divided lieve (raising rates) would day, some investors be- Boston store features local- ized assortment. It’s bring-
among investors and be the right thing for the lieve that the market’s ly-brewed Samuel Adams ing those pieces together
economists as to whether economy...it’s time.” slump may yet have some beer. The “Fan Central” so it feels like a local com-
the Fed will, or even should, The Dow Jones industrial way to run. Michael Ball, area stocks Red Sox and munity. Some of the mar-
raise interest rates this average climbed 228.89 President of Weatherstone Patriot gear. And a special keting material where we
month. On the one hand, points, or 1.4 percent, to Capital Management, is section highlights the prod- really captured the es-
hiring in the U.S. is continu- 16,599.85. The Standard & playing it safe by holding ucts used to make the lo- sence of Fenway Park, a
ing to improve and the Poor’s 500 index climbed more cash. He says that the cal favorite peanut butter- bull’s eye made up of bats
housing market is recover- 25.06 points, or 1.3 per- outlook for stocks is deterio- and-marshmallow sand- and balls, and then, obvi-
ing. On the other, there are cent, to 1,978.09. The Nas- rating against a backdrop wich called fluffernutter. ously, great local assort-
signs that weakness in the daq composite advanced of moderately rising inter- The store that’s near Fen- ment of merchandize that
global economy could im- 54.76 points, or 1.1 percent, est rates and the prospect way Park is part of Target’s tells our guests we under-
pact the U.S. economy. to 4,860.52. of weakening corporate effort to tailor merchandise stand we’re in their home-
Fed policymakers have The gains were led by in- earnings. to local preferences. In ad- town.
dition to the Boston store, That combination really is
Trader Thomas Donato, left, works on the floor of the New York Stock Exchange. U.S. stocks rose Target is testing this strat- for us inspiration as we think
sharply on Tuesday, a day before the start of a crucial Federal Reserve meeting. egy in 10 Chicago stores, about future stores, and fu-
with hopes to eventually ture localization.
(AP Photo/Richard Drew) expand chain-wide. --Why tailor merchandise
Localization is not new. to locals?
kept the central bank’s dustrial stocks. The sector “Frankly, we are very con- It’s common for fast food We’ve got to appeal to
benchmark rate close to had been among those hit cerned about the market,” chains to add dishes to ap- that local customer. While
zero for almost seven years, worst by the recent global said Ball. “You may get a peal to local tastes. (Think: the Target brand is icon-
supporting both the econ- sell-off as investors worried bounce out of here, but McDonald’s lobster rolls in ic, we want to make sure
omy and the stock market. about the outlook for glob- without improving earnings New England.) And cloth- we’re relevant in those lo-
The sharp gains on Tuesday al demand. and better global econom- ing chains like Macy’s carry cal communities. When we
came after some mixed “People have been over- ic growth, it may be short- fashions to appeal to local can really take it across
reports that showed weak- ly pessimistic on global lived.” Earnings for S&P 500 styles. Target’s strategy is the country, there’s sig-
ness in some parts of the growth,” said Scott Wren, companies are expected part of an effort to boost nificant upside. We have
economy. While retail sales senior global equity strate- to slump 4.1 percent in the sales. The retailer, once some catch up to play, but
edged higher last month, gist at Wells Fargo Invest- third-quarter, according to known for its cheap but we’re committed that we
factory output fell in the ment Institute. “I think they S&P Capital IQ. chic fashions and home do catch up.
same period as automak- are going to be surprised.... Energy stocks got a lift on decor, lost customers dur- --What’s the future of big-
ers cut back on produc- you are going to see a little Tuesday as oil prices rose.q ing the recession after fo- box stores?
cusing too much on ex- This store here in Boston,
panding everyday grocery the Fenway store, is a great
items like milk. Target’s lo- example that big stores still
calization strategy is seeing play a really relevant role.
successes, too. And at the This is 160,000 square feet.
Boston store, “Fan Central” And the guests love what
is a top sales performer we’ve done here. They
compared with other shops love the breadth of cat-
that sell fan merchandise egories and assortment.
across the chain. So there’s going to be an
Brian Cornell, who became important role for full-size
CEO about a year ago, stores.q
