Target's 2Q profit up 3.7 percent

NEW YORK (AP) — Target Corp. is benefiting from the economic downturn, while other retailers are getting battered by it.

The discounter, based in Minneapolis, today posted second-quarter profit and revenue that beat Wall Street estimates in part because of a growing trend among Americans who are concerned with job security and other economic woes.

Target said that while cost-conscious customers in general are making fewer shopping trips to save money on gas, they're increasingly coming into its stores for their one-stop shopping needs.

"We do believe that we are gaining some of the trip consolidation," said Kathy Tesija, Target's executive vice president of merchandising. "We think we're benefiting across all income levels."

Consumers have been changing their shopping habits during the economic downturn as they're being squeezed by rising food costs, high unemployment and weak job and housing markets. Retailers have had to adapt by keeping inventory fresh, offering incentives and discounting.