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MINNEAPOLIS -- Target Stores continues to straddle the fence between an upscale image and a low-cost provider. This is a complicated position to be in for a retailer that has launched another new brand from designer Isaac Mizrahi and advertises specials on daily items all under one roof.

It's a dance that's becoming increasingly more complex as the retailer continues to introduce new brands, expand its food selection, grow a continuously revised supercenter business and hang on to the upscale cache it has so successfully established.

Target opened a slew of new stores this summer, and its latest merchandising initiatives clearly illustrate how dedicated the retailer is to its vision.

Management has said that 30% to 40% of the chain's square-footage growth will come from its supercenter division. It's a conservative number, particularly when compared to Wal-Mart, where supercenters comprise 90% of total store growth annually. Target opens on average 100 new stores a year, allocating between 30 and 40 units to the SuperTarget format.

The company also continues to tinker with the prototype and has been quietly moving away from the branded grocery business and taking the food side of the store down a notch or two in terms of image.

Gone is the Archer Farms Market name on the outside of the building. The entrance on the food side now bears the single, simple word "grocery" above the door. Interior signage is also free from the Archer Farms name, although in all other regards appears similar to previous formats.

Whereas the flooring had been a pale wood on the grocery side, it is now the same white tile as the general merchandise portion of the store. According to Neil Stern, consultant with McMillan/Doolittle, it's an attempt to tie the two portions of the business more strongly together in the mind of the consumer.

"They originally had intended to create a separate brand and identity for the food side of the store," said Stern. "In their newer versions, they have gone back to a unified look where Target is the main brand and the store reflects a unified look.

"It's easier at this stage of their development to do this," he said. "They simply don't have the presence or penetration of stores to make an impact with Archer Farms. It is a signal that they're still tinkering with it."

It could also be an attempt to make the format more versatile. Chairman and ceo Bob Ulrich has said that the SuperTarget format requires a higher-income demographic than Wal-Mart's format and even a higher-income demographic than a typical Target store. By toning down the up. scale grocery business and lowering the income levels needed to support these units, Target may be able to grow the format quicker--a prospect that Wall Street may find compelling.

SuperTarget growth is primarily confined to the Midwest and South Central regions but should soon be expanding to Phoenix and Washington, D.C., according to Sanford Bernstein analyst Emme Kozloff. Newer units are being built without the Archer Farms name in both new and existing markets. Stores already bearing that brand have not been remodeled.

Management seems unconcerned with keeping pace with Wal-Mart's supercenter growth, and Ulrich consistently states that Target is using the format more for convenience purposes where appropriate. And by letting Wal-Mart continue its assault or national and regional grocery chains, Target will benefit from the overall weaker competition for its own super center division.

Archer Farms may be toned down in the overall branding message, but it is still very much present on the store shelves. The private label lines of Archer Farms and Market Pantry are in abundance in these stores but are now just another private brand from a retailer that has built its reputation on proprietary product.

And fashion designer Isaac Mizrahi joined the party this summer with a line of women's apparel and select shoes and accessories such as scarves and sunglasses. Todd Oldham returns for back-to-school with a collection of bedding, pillows, throws, cushions and home accessories including cocktail items.

The Swell line from Cynthia Rowley and Ilene Rosenzweig remains in bedding, sleepwear and some party goods but has been scaled back a bit since its launch. Tupperware has ended its relationship with Target stores, on the basis that it jeopardized the company's traditional base of independent sellers. OshKosh B'gosh debuted in kids apparel this fall, and the Eddie Bauer name is found in an increasing number of departments beyond sporting goods, such as luggage and mobile electronics.

In fact, consumer electronics continues to an area of expanded growth for Target. Eddie Bauer-branded mobile video products include mobile DVD players, screens and entertainment systems for the car and portable entertainment units manufactured by AudioVox and handheld TVs from Casio, but all bear the Eddie Bauer brand.

The proprietary Sony Liv line is also joined by GE's Designer Series, a collection of space-saving CE items such as 13-inch TV/DVD combos and sound systems that mount under a kitchen counter.

High-end product and differentiation through private brands, that's Target's successful formula with a new re-emphasis on value pricing--a neat feat to complete.