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Ernst & Young                                       1400 Pillsbury Center
                                                    Minneapolis, Minnesota 55402
                                                    Phone: 612 343 1000



 
                                  EXHIBIT (18)



March 18, 1994



Mr. Douglas A. Scovanner
Senior Vice President & Treasurer
Dayton Hudson Corporation
777 Nicollet Mall
Minneapolis, Minnesota  55402

Dear Mr. Scovanner:

The notes to consolidated financial statements of Dayton Hudson Corporation 
included in its Annual Report on Form 10-K for the year ended January 29, 1994 
state that internally-generated indices were used in the valuation of the LIFO 
inventories of the Department Store Division and Mervyn's instead of the Bureau 
of Labor Statistics indices previously used. You have advised us that you 
believe the change is to a preferable method in your circumstances because it 
better represents the price changes being experienced at the Department Store 
Division and Mervyn's.

There are no authoritative criteria for determining a "preferable" LIFO 
inventory method based on the particular circumstances. However, we conclude 
that the change in the method of estimating retail price indices is to an 
acceptable alternative method which is preferable in your circumstances based on
your business judgment to make this change for the reason cited above.

                                         Very truly yours,
                                         /s/ Ernst & Young

