MINNEAPOLIS — Target Corp. plans to aggressively expand its grocery business and also move into urban markets.

Target Corp. plans to aggressively expand its grocery business and also move into urban markets.

The discounter intends to have "P-fresh" grocery departments in about 850 of its roughly 1,500 stores by the end of 2011, and expects those departments to add 1 or 2 percentage points to 2011 same-store sales.

Target had previously announced plans to add grocery departments to 350 of its stores this year; it now says it will add the sections to another 400 stores in 2011.

The retailer also said it plans to open a small-format urban store in Seattle in 2012, and is exploring other markets (including New York, Miami, Boston and Chicago) where the concept would work.