Target Corporation: Company Analysis and Evaluation

SWOT Analysis

"The Strength of Many, The Power of One."

ByJenkins, William

Prepared forProfessor T. Jackson

MGMT 303 – Section BDeVry University, Decatur Campus

January 9, 2009

Target is a growing company focused on general merchandise retailing. Our

principal operating strategy is to provide exceptional value to consumers through upscale

discount stores and on-line shopping.

Target delights guests by delivering well-designed products at an exceptional

value in a clean, bright, and comfortable shopping environment. Target.com, our online

retailing organization, offers guests the convenience of accessing a variety of services

and shopping from thousands of unique and highly differentiated items around the clock.

Target is America's second largest general merchandise retailer, committed to

being a premier growth company and corporate citizen.

Commitment to Communities

Target understands and appreciates its role as a corporate citizen. Since 1946,

Target has contributed 5 percent of its federally taxable income to the communities in

which it does business through grants, special programs and team member volunteerism.

Today, Target gives more than $2 million each week to communities nationwide.

Fast, Fun and Friendly Formats

Target operates more than 140 SuperTarget stores, which combine grocery and

general merchandise. The focus of SuperTarget is to make food and grocery shopping

enjoyable and easy by offering a store environment that is as unique, upscale and as

differentiated as the assortment and presentation in our Target stores.

In addition to stores, Target comprises several operations, including the Target

Sourcing Services/AMC, a leading global sourcing organization; Target Financial

Services, which operates the company's credit card services, and Target Commercial

Interiors, a provider of office interiors in the upper Midwest.

I am doing Analysis and Evaluation (SWOT) on the Target Corporation I have

been a Team member of Target for about three years now working on my fourth year.

After my 90 days I was ask to be a Leader and Team Tanering I did not take the Leander

portion at the time because I could not do all the job faction that I would have had to do,

but I did lead about the Target and soon became a stock holder of the Target Corporation.

If you look at the stock market on the NYSE, Target is defect by TGT for the stock

market. I want to give you some background on Target; it was founded in Minneapolis,

Minnesota in 1902 under the name of Dayton Dry Goods Company back in 1962, Target

opened it first store in Roseville, Minnesota, and in 2000 the company changed its name

from Dayton Hudson to Target. Target is the fifth largest retailer by sales revenue in the

United States, behind Wal-Mart, The Home Depot, Kroger, and Costco. Target is also

ranked at number 31 on the Fortune 500 as of 2008. Target operates its retailing business

exclusively in the United States. It is a rival and competitor of Kmart and Wal-Mart.

George Dayton constructed a six-story building in downtown Minneapolis and convinced

R.S. Good fellow Company to move its Good fellow’s department store into it. The

store's owner, Reuben Simon Good fellow, retired and sold his interest in the store to

George Dayton in 1902. The store changed its name to the Dayton Dry Goods Company

in 1902, and it changed its name again to the Dayton Company in 1910. By the 1950s, it

acquired the Portland, Oregon-based Lipmans Department Store Company and operated

it as a separate division. In 1956, the Dayton Company opened South dale, the world's

first fully enclosed two-level shopping center in Edina, Minnesota, a suburb of

Minneapolis. The Dayton Company also became a retail chain by opening its second

Dayton's store in South dale. Target was found by Gorge D. Dayton, in 1902 it set up it

headquarters in Minneapolis, Minnesota and it served the USA. Some of the key people

in place are Gregg Steinhafel, the CEO Bob Ulrich, the chairman Industry Retail

Products clothing, house wares, food, Products clothing, house wares, food. Revenue

US$63.367 billion, Operating income US$ 4.652 billion, Net income US$ 2.849 billion,

Total assets US$ 44.560 billion, Total equity US$ 15.307 billion (Financials for fiscal

2007) Employees 366,000 (2008).

1962–1971: The founding of Target

Target's original bulls eye logo from 1962 until 1968. In 1962, the Dayton

Company, using a concept developed by John F. Geisse, entered discount merchandising

by opening its first Target discount store in Roseville, Minnesota, a suburb north of Saint

Paul. The name "Target" originated from Dayton's publicity director, Stewart K.

Widdess, and was intended to prevent consumers from associating the new discount store

chain with the department store. The new subsidiary, Target Stores, ended its first year

with four units, all in Minnesota. Target Stores lost money in its initial years, but in 1965

it reported its first gain with sales reaching $39 million, allowing a fifth store to open in

Minneapolis. In 1966, Bruce Dayton launched the B. Dalton Bookseller specialty chain,

which became the largest hardcover bookseller in the United States. The bookseller chain

was named after the founder, but with the y in Dayton replaced with an l. Target Stores

expanded outside of Minneapolis by opening two stores in Denver, Colorado, and sales

exceeded $60 million. In 1967, the Dayton Corporation was established and it went

public with its first offering of common stock, and it opened two more Target stores in

Minnesota resulting in a total of nine units.

In 1968, Target changed its bull’s eye logo to a more modern look, and expanded

into St. Louis, Missouri, with two new units. That year, Target Stores experienced a

transition phase: Target's president and co-founder, Douglas J. Dayton, went back to the

parent Dayton Corporation and was succeeded by William A. Hodder, and senior vice

president and cofounder John Geisse left the company. St. Louis-based May Department

Stores later hired him, where he founded the Venture Stores chain. Target Stores ended

the year with 11 units and $130 million in sales. In 1969, it acquired the Lechmere

electronics and appliances chain that operated in New England, and expanded Target

Stores into Texas and Oklahoma with six new units and its first distribution center in

Fridley, Minnesota. The Dayton Company also merged with the Detroit-based J.L.

Hudson company that year, to become the Dayton-Hudson Corporation consisting of

Target and five major department store chains: Dayton's, Diamond's of Phoenix, Arizona,

Hudson's, John A. Brown of Oklahoma City, Oklahoma, and Lipmans. In 1970, Target

Stores added seven new units, including two units in Wisconsin, and the 24-unit chain

reached $200 million in sales. That year, Dayton-Hudson also acquired the Team

Electronics specialty chain that was headed by Stephen L. Pistner.

1971-1982: Turnaround

Dayton-Hudson acquired sixteen stores from the Arlan's department store chain

in Colorado, Iowa, and Oklahoma. That year, two of those units reopened as Target

stores, and in 1972 the other fourteen were reopened to make a total of 46 units. This

caused the chain to experience another major transition phase: It reported its first

decrease in profits since its initial years, as a result of the chain's rapid expansion and the

top executives' lack of experience in discount retailing. Its loss in operational revenue

was due to overstocking and carrying goods over multiple years regardless of inventory

and storage costs. By then, Dayton Hudson considered selling off the Target Stores

subsidiary. In 1973, Stephen Pistner, who had already revived Team Electronics and

would later revive Montgomery Ward and Ames, was named chief executive officer of

Target Stores, and Kenneth A. Mackey was named Target Store’s senior VP. The new

management saved the chain by marking down merchandise to clean out its overstock

and by allowing only one new unit to open that year. In 1975, it opened two stores,

reaching 49 units in nine states and $511 million in sales. That year, the Target discount

chain became the company's top revenue producer.

In 1976, Target opened four new units and reached $600 million in sales. That

year, Mackey was promoted to president and chief executive officer of Target Stores. In

1977, Target Stores opened seven new units, and Stephen Pistner became president of

Dayton Hudson, with Mackey succeeding him as chairman and chief executive officer of

Target Stores. The senior VP of Dayton Hudson, Bruce G. Albright, moved to Target

Stores and succeeded Kenneth Mackey as president. In 1978, the company acquired

Mervyns and became the 7th largest retailer in the United States. Target Stores opened

eight new stores that year, including its first shopping mall anchor store in Grand Forks,

North Dakota. In 1979, it opened 13 new units to a total of 80 Target stores in eleven

states and $1.12 billion in sales. In 1980, it sold its Lipmans department store chain of six

units to Marshall Field's, which re-branded the stores as Frederick & Nelson. That year,

Target Stores opened seventeen new units, including expansions into Tennessee and

Kansas. It also acquired the Ayr-Way discount retail chain of 40 stores and one

distribution center from Indianapolis-based L.S. Ayres & Company, which it reopened in

1981 as Target stores. That year, Stephen Pistner left the parent company to join

Montgomery Ward, and Kenneth Mackey succeeded him as president of Dayton Hudson.

Floyd Hall succeeded Kenneth Mackey as chairman and chief executive officer of Target

Stores. Bruce Albright left the company to work for Woolworth, where he was named

chairman and chief executive officer of Wool co. Bob Ulrich also became president and

chief executive officer of Diamond's Department Stores in 1981. In addition to the Ayr-

Way acquisition, Target Stores expanded by opening fourteen new units and a third

distribution center in Little Rock, Arkansas, to a total of 151 units and $2.05 billion in

sales. Target Great land in Laredo, Texas since the launch of Target Stores to this point; it

had focused its expansion in the Central United States. In 1982, it expanded into the West

Coast of the United States by acquiring 33 Fed Mart stores in Arizona, California, and

Texas and opening a fourth distribution center in Los Angeles. That year, Bruce Albright

returned to Target Stores as its vice chairman and chief administrative officer, and the

chain expanded to 167 units and $2.41 billion in sales. The 33 units acquired from Fed

Mart were reopened as Target stores in 1983. Also in 1983, it founded the Plums off-

price apparel specialty store chain with four units in the Los Angeles area, with an

intended audience of middle-to-upper income women.

In 1984, it sold its Plums chain to Ross Stores after only 11 months of operation,

and it sold its Diamond's and John A. Brown department store chains to Dillard's.

Meanwhile, Target Stores added nine new units to a total of 215 stores and $3.55 billion

in sales. Floyd Hall left the company and Bruce Albright succeeded him as chairman and

chief executive officer of Target Stores. In May 1984, Bob Ulrich became president of

the Dayton Hudson Department Store Division, and in December 1984 became president

of Target Stores.

In 1986, the company acquired 50 Gemco stores from Lucky Stores in California,

allowing Target Stores to become the dominant retailer in Southern California as the

chain grew to a total of 246 units. It also opened a fifth distribution center in Pueblo,

Colorado. Dayton-Hudson sold the B. Dalton Bookseller chain of several hundred units

to Barnes & Noble. In 1987, the acquired Gemco units reopened as Target units, and

Target Stores expanded into Michigan and Nevada, including six new units in Detroit,

Michigan, to compete directly against Detroit-based Kmart, leading to a total of 317 units

in 24 states and $5.3 billion in sales. Bruce Albright became president of Dayton Hudson,

and Bob Ulrich succeeded him as chairman and chief executive officer of Target Stores.

In 1988, Target Stores expanded into the Northwestern United States by opening eight

units in Washington and three in Oregon, to a total of 341 units in 27 states. It also

opened a distribution center in Sacramento, California, and replaced the existing

distribution center in Indianapolis, Indiana, from the Ayr-Way acquisition with a new

one. In 1989, it expanded by 60 units, especially in the Southeastern United States where

it entered Florida, Georgia, North Carolina, and South Carolina to a total of 399 units in

30 states with $7.51 billion in sales. This included an acquisition of 31 more stores from

Federated Department Stores' Gold Circle and Richway chains in Florida, Georgia, and

North Carolina, which were later reopened as Target stores. It also sold its Lechmere

chain that year to a group of investors including Berkshire Partners, a leveraged buy-out

firm based in Boston, Massachusetts, eight Lechmere executives, and two local shopping

mall executives.

In 1990, it acquired Marshall Field's from BATUS Inc. and Target Stores opened

its first Target Great land general merchandise superstore in Apple Valley, Minnesota. In

1991, Target Stores had opened 43 Target Great land units, and sales reached $9.01

billion. In 1992, it created a short-lived chain of apparel specialty stores called Everyday

Hero with two stores in Minneapolis. They attempted to compete against other apparel

specialty stores such as GAP by offering private label apparel such as its Merona brand.

In 1993, it created a chain of closeout stores called Smarts for liquidating clearance

merchandise, such as private label apparel, that did not appeal to typical closeout chains

that were only interested in national brands. It operated four Smarts units out of former

Target stores in Rancho Cucamonga, California, Des Moines, Iowa, El Paso, Texas, and

Indianapolis, Indiana that each closed out merchandise in nearby distribution centers. In

1994, Kenneth Macke left the company, and Bob Ulrich succeeded him as the new

chairman of Dayton-Hudson. In 1995, Target Stores opened its first Super Target

hypermarket in Omaha, Nebraska. It also closed the four Smarts units after only two

years of operation. Its store count increased to 670 with $15.7 billion in sales, and in

1996 to 736 units with $17.8 billion in sales. In 1997, both of the Everyday Hero stores

were closed. Target's store count rose to 796 units, and sales rose to $20.2 billion. In

1998, it acquired Green spring Company's multi-catalog direct marketing unit, the River

town Trading Company, from Minnesota Communications Group, and it acquired the

Associated Merchandising Corporation, an apparel supplier. Target Stores grew to 851

units and $23.0 billion in sales. In 1999, it acquired Fedco and its ten stores in a move to

expand its Super Target operation into Southern California. It reopened six of these stores

under the Target brand and sold the other four locations to Wal-Mart, Home Depot, and

the Ontario Police Department, and its store count rose to 912 units in 44 states with sales

reaching $26.0 billion. On September 7, 1999, it re-launched its Target.com website as an

e-commerce site and as part of its discount retail division. The site initially offered

merchandise that differentiated its stores from its competitors, such as its Michael Graves

brand.

In January 2000, Dayton Hudson Corporation changed its name to Target

Corporation and its ticker symbol to TGT; by then, between 75 percent and 80 percent of

the corporation's total sales and earnings came from Target Stores, while the other four

chains—Dayton's, Hudson's, Marshall Field's, and Mervyns—were used to fuel the

growth of the discount chain, which expanded to 977 stores in 46 states and sales reached

$29.7 billion by the end of the year. It also separated its e-commerce operations from its

retailing division, and combined it with its River town Trading unit into a stand-alone

subsidiary called target. Direct. In 2001, it announced that its Dayton's and Hudson's

stores would operate under the Marshall Field's brand, which was the most recognizable

name in the Department Stores Division. Target Stores expanded into Maine, reaching

1053 units in 47 states and $33.0 billion in sales. In 2002, it expanded to 1147 units,

which included stores in San Leandro (Bayfair Mall), Fremont, and Hayward, California,

and sales reached $37.4 billion, and in 2003 it reached 1225 units and $42.0 billion in

sales. On June 9, 2004, Target Corporation announced its sale of the Marshall Field's

chain to St. Louis, Missouri-based May Department Stores, which became effective July

31, 2004. On July 21, 2004, it announced the sale of Mervyns to an investment

consortium including Sun Capital Partners, Inc., Cerberus Capital Management, L.P.,

Lubert-Adler/ Klaff and Partners, L.P., which was finalized September 2. Target Stores

expanded to 1308 units and reached $46.8 billion USD in sales. In 2005, it reached 1397

units and $52.6 billion in sales, and in 2006 it expanded to 1488 units and sales reached

$59.4 billion.

In May 2005, Target began operation in Bangalore, India, and these operations

currently support all Target business units. In 2006, Target completed construction of the

Robert J. Ulrich Center in Embassy Golf Links in Bangalore, and Target plans to

continue its expansion into India with the construction of additional office space at the

My sore Corporate Campus. Target Corporation headquarters with Target Light System,

created by 3M, on January 9, 2008, Bob Ulrich announced his plans to retire as CEO, and

named Gregg Steinhafel as his successor. This is due to Target Corporation policy which

requires its high ranking officers to retire at the age of 65. Ulrich's retirement as CEO was

effective May 1, but he will remain the chairman of the board until the end of the 2008

fiscal year.

Subsidiaries

Today, Target Corporation has its headquarters on Nicollet Mall in Minneapolis,

near the site of the original Good fellow’s store. As well as the main retail subsidiary,

Target Stores, the company owns several other subsidiaries, which include: Target

Financial Services (TFS): issues Target's credit cards, known as the Target RED card,

consisting of the Target VISA and the Target Card (formerly the Target Guest Card),

issued through Target National Bank (formerly Retailers National Bank) for consumers

and through Target Bank for businesses. Target Financial Services also oversees Gift

Card balances. In October 2007, Target launched its PIN based debit card, the Target

Check Card. The Target Check Card withdraws funds from the customer's existing

checking account, and allows for up to $40 "cash back". The check card allows customers

to accumulate points towards Target Rewards, as well as designate a school for Target's

Take Charge of Education program, and accumulate pharmacy rewards. Unlike the

Target Card and the Target Visa, customers do not receive an instant 10% discount for

opening the account.

Target Sourcing Services/The Associated Merchandising Corporation

(TSS/AMC): This global sourcing organization locates merchandise from around the

world for Target and helps import the merchandise to the United States. Such

merchandise includes garments, furniture, bedding, and towels. TSS/AMC has 27 full-

service offices, 48 quality-control offices, and seven commissionaires located throughout

the world. TSS/AMC employs 1,200 people. Its engineers are responsible for evaluating

the factories that do business with Target Corporation for quality, as well as labor rights

and transshipment issues. It was acquired by Target Corporation in 1998, and was

founded in 1916, previously owned by the clients it served. It also acts as a buying office

for Saks Incorporated, Bloomingdale's, Stage Stores Inc., TJ Maxx, and Marshall’s. The

Target Sourcing Services division locates merchandise exclusively for Target Stores and

Target.com.

Target Commercial Interiors: provides design services and furniture for office

space and originated in the home furniture department at Dayton’s. Currently, Target

Commercial Interiors has an unusually high market share of Fortune 500/1000 business

customers, and are expanding to attract small to medium sized businesses, as well as

home offices. This subsidiary has six showrooms in Illinois, Minnesota, and Wisconsin,

including a first-of-its-kind retail concept store and showroom in Bloomington,

Minnesota that opened on June 23, 2005.

Target Brands: owns and oversees the company's private label products, including

the grocery brands Archer Farms and Market Pantry, Sutton & Dodge, their premium

meat line, and the electronics brand Trutech. In addition, Bull’s-eye Dog is a trademark,

and the Bull’s-eye Design and 'Target' are registered trademarks of Target Brands.

Target has creative a look and feel of a place that kids and family love. Target thru is

team member are doing big thinks and but are true small in what they

Target.com: owns and oversees the company's e-commerce initiatives, such as the

Target.com domain, Founded in early 2000 as target. direct, it was formed by separating

the company's existing e-commerce operations from its retailing division, and combining

it with its River town Trading direct marketing unit into a stand-alone subsidiary, In

2002, target. Direct and Amazon.com's subsidiary Amazon Enterprise Solutions created a

partnership in which Amazon.com would provide order fulfillment and guest services for

Target.com in exchange for fixed and variable fees. This electronic commerce

relationship between target, direct and Amazon Enterprise Solutions will last until August

2010. After the company sold Marshall Field's and Mervyns in 2004, target, direct

became Target.com. The domain target.com attracted at least 288 million visitors

annually by 2008 according to a Compete.com survey. These help Target to give their

customer what they need and want,

Target Stores

Target Corporation's main retailing subsidiary, Target Stores, is a United States

discount retail chain consisting of 1,591 stores as of October 2007. It has units in all

states except for Hawaii and Vermont, operating under the mastheads of Target, Target

Great land, and Super Target. The chain was founded by Douglas J. Dayton and John

Geisse, and the first Target store "T-1" opened on May 1, 1962 in Roseville, Minnesota.

That store was closed and demolished on January 8, 2005, to make room for a Super

Target, which opened on October 9 of the same year. Target Corporation has aggressive

plans to have 2,000 stores open by the year 2010, including expanding to Hawaii.

Target's retail operations are limited to the United States. Aside from the leased

name and logo, the Australian retail chain of the same name is not related to Target

Corporation.

The exterior of new Target store in Miami, Fl which takes cues from local

architecture. Target is a chain of discount department stores that are about 95,000 to

135,000 square feet (12,000 m2) and carry hardliners "regular" products and goods, soft

lines (clothing), and a limited amount of groceries, mostly non-perishable. Specifically,

Target stores carry clothing, shoes, jewelry, health and beauty products, electronics,

compact discs, DVDs, bedding, kitchen supplies, sporting goods, toys, pet supplies,

automotive supplies, hardware supplies, and food. They also carry seasonal merchandise

such as patio furniture during the summer and Christmas decorations during November

and December. Many stores may also have one-hour photo processing, a portrait studio,

an optical store, a pharmacy, and a garden center. Stores opened or re-modeled in 2004 or

later also include the expanded snack bar that is featured in Target Great land

locations.The first Target that I became a team was a Greatland store (number 1497).

These generally include a Starbucks Coffee shop, a Pizza Hut Express, and a Taco Bell

Express in addition to Target's "Food Avenue". It has also been reported that Cold Stone

Creamery and Target have signed a deal to test in-store ice cream shops in four stores In

2008,and my store (1197) is one of the store we started build in July 2008 and now it up

and running. Target has begun to use the name "Target Cafe" in place of "Food Avenue",

as noted on in-store coupons.

The first Target stores included leased supermarkets in addition to general

merchandise, which during the time was a common practice by discount retailers as they

attempted to offer a one-stop shopping experience to customers. Douglas Dayton stated

in 1967 that "we believe that the discount-grocery store is a necessary ingredient in what

we offer the customer. After all, food sales are about 40% of all department store-type

merchandise sales, so the two kinds of stores go hand-in-hand and are what people think

of when they think of a discount store." However, by the end of the decade, Target started

moving away from this general merchandise and leased supermarket practice. In 1969,

Target opened its first store consisting of only general merchandise.

In the past, the one-hour photo processing labs were not owned by Target but by

Qualex, a subsidiary of Eastman Kodak, and were staffed by employees of Qualex, not

Target. However, in June 2005, Target spokeswoman Brie Heath announced that Target

Corporation will replace the Qualex photo labs with their own labs running Kodak

equipment, and will staff them with Target employees. Unlike the previous Qualex labs,

all photo processing is done "in house", including next-day, digital, and Kodak Perfect

Touch processing, although a few labs have been replaced with "send-out" only service

with a self-service Kodak Picture Maker kiosk. A select number of "test" stores are

running with Fuji film equipment instead of Kodak. Target has also partnered with

Yahoo! Photos for online photo services, including ordering prints online for one-hour

store pickup. This ended in September 2007. Target Photo now partners with Kodak

Gallery, Shutter fly, and Photo bucket.

The exterior of a typical Target Great land in Mount Laurel, New Jersey. Unlike

smaller Target stores, Target Great lands feature double entrances. Target Great land is a

chain of general merchandise superstores that are about 150,000 square feet (14,000 m2).

they carry a larger selection of general merchandise than a basic Target store; however,

though they carry more groceries than a typical Target store, they do not have a full-line

of groceries like meat, bakery, deli, produce and dairy like the store on Highway 78. The

first Target Great land opened in Apple Valley, Minnesota in 1990, but has since been

remodeled and expanded, becoming a Super Target. Throughout 2005, the company

reorganized the sales floor, allowing them to double the grocery space they had before.

Prominent features include double entrances on single level stores along with an

expanded snack bar. The snack bar may include a Pizza Hut Express, Taco Bell Express,

and or a Starbucks. The construction of new Target Great land stores has been phased out

in favor of building Super Target prototypes or regular Target prototypes with expanded

sales floors. The last Target Great land opened in 2006 and is located in Staten Island,

New York City.

The exterior of a typical Super Target in Salt Lake City, Utah. Shown is the

merchandise loading lane between the double entrances on the front of the building.

Super Target is a chain of hypermarkets that are about 175,000 square ft. (16,000 m2).

Like Target Great land, Super Target features double entrances on one-story stores; some

also have between the double entrances a merchandise loading lane as a prominent

feature of the building. Super Target stores, unlike Target and Target Great land, carry all

the same essentials, including a full service grocery with a bakery, meat department, fresh

produce, and a Super Deli. Most old locations and all new Super Target stores will

include a Target Optical. Many Super Target stores may also feature a Starbucks Coffee

shop, a Pizza Hut Express, a Taco Bell Express, which is currently being phased out in all

Target locations Jamb a Juice, a Target Pharmacy, The Studio at Target a portrait studio,

Target Photo a one-hour photo processing lab, and a Wells Fargo Bank or U.S. Bank.

Select few stores in Maryland and the Twin Cities also have a new concept inside called

Target Clinic. It is similar to Minute Clinic found in drug stores such as Walgreen’s or

CVS/pharmacy. Unlike many other hypermarkets in the United States such as Wal-Mart

Super centers and Meijer, Super Targets are not open twenty-four hours.

In the past, some Super Targets featured an E*TRADE trading station instead of a

Wells Fargo Bank. However, in June 2003, E*TRADE decided to remove all E*TRADE

branches from their Super Target locations 44 without advance notice. This sudden move

was not initiated by Target Corporation. Mitchell Caplan, E*TRADE's CEO at that time,

said that "We were not able to make it into a profitable distribution channel we're better

off exiting." E*TRADE also sent a letter of notification to their customers informing

them about this change.

The first Super Target opened in Omaha, Nebraska in 1995, and the second Super

Target opened in Lawrence, Kansas, later that same year. As of October 2007, Target

operated 210 Super Target stores in 22 U.S. states; the majority of those are in Texas and

Florida, with sizable numbers in Minnesota and Colorado.

Urban stores

The Nicollet Mall, downtown Minneapolis Target, two stories with a varied

facade to mimic multiple buildings; the tower in the background is Target Corp.

headquarters. While many Target stores share a fairly common big-box store layout, the

company has been flexible with its designs. Target operates unique stores across the

country in urban locations or within malls, in which a standard one-story building would

not be feasible. These stores encompass multiple floors with both sales floor area and off

stage areas such as offices or storage rooms spanning a number of these floors. Vertical

transportation is provided in the store by escalator, elevator, or Vermaport, a specialized

escalator for carts.

Target has used their urban store concept to open multiple story stores in city

centers such as in Brooklyn, New York City, Glendale, Los Angeles, Chicago, Pasadena,

California, San Diego, Washington, D.C., Atlanta, New Orleans, and Minneapolis within

the corporation's headquarters complex. Building stores in these environments carries an

elevated cost which is offset by the high potential for business that these stores can bring

in. The Target store located on Nicollet Mall in Minneapolis features a three-story glass

entrance and a design that sets it apart from suburban Target stores. This urban store

alone cost Target Corporation $16.3 million. This concept has also been used to convert

Target stores from former Bullock's, Montgomery Ward, J. W. Robinson's, Robinsons-

May and Younkers stores.

Distribution centers

As of October 2007 Target Corporation operates 26 distribution centers across the

United States. Target opened two new distribution centers in 2006 (Rialto, California and

DeKalb, Illinois) to support the growth of its stores. With the exception of vendor

supplied items, such as greeting cards and soda, these distribution centers ship items

directly to Target stores. Also, unlike Wal-Mart, Target's grocery selection does not come

from their own distribution centers, but from the companies that Target has partnered

with. For example, the produce carried in Super Targets comes from Supervalu

distribution centers, except in Colorado, which are serviced through Fresh Pack Produce

Inc. of Denver, Colorado.

The retail chain's first distribution center opened in Fridley, Minnesota, in 1969. It

included a computerized distribution system and was known as the Northern Distribution

Center. During this time, the chain consisted of seventeen stores after having expanded

into Oklahoma and Texas.

On August 9, 2004, Target announced to their suppliers that they were going to

perform a trial on the effects of radio frequency identification on the efficiency of supply

chain management in the Dallas and Fort Worth Metroplex. This trial involved one

Target distribution center and ten nearby Target stores. Here, RFID tags would be placed

on the bar codes of pallets and cartons to track the goods from the suppliers to the

distribution center, and from the distribution center to the stores.

Differentiation

Typical interior of a Target store Target Corporation competes directly against

other discount retailers, mainly Wal-Mart and Kmart. Since its founding in 1962, it has

intended to differentiate its stores from its competitors by offering what it believes is

more upscale, trend-forward merchandise at low cost, as opposed to the traditional

concept of focusing on low-priced goods. Douglas J. Dayton, one of the Dayton brothers,

explained John Geisse's concept:

“ "We will offer high-quality merchandise at low margins, because we are cutting

expenses. We would much rather does this than trumpet dramatic price cuts on cheap

merchandise?" ” As a result, Target stores tend to attract younger and more educated and

affluent customers than its competitors. Currently, the median Target shopper is 41 years

old, which is the youngest of all major discount retailers that Target competes directly

against. The median household income of Target's customer base is roughly $63,000

USD. Roughly 76% of Target customers are female, and more than 45% have children at

home. About 80% have attended college and 48% have completed college. Ninety-seven

percent of American consumers recognize the Target Bulls eye logo.

In October 2008, Target announced plans to fight the perception that their

products are more expensive than those of other discount retailers, such as Wal-Mart. The

company planned to add perishables to their inventory, cut back on discretionary items,

and spend three-quarters of their marketing budget on advertising that emphasizes value

and includes actual prices of items featured in ads. Target also planned to slow its

expansion from about 100 stores a year down to 70 stores a year. Target refers to itself as

a "discount department store" instead of just a discount store. Target stores do not play

ambient music, commonly known as elevator music or Muzak. However, several Target

stores feature a Starbucks, and those do play music - but only in the Starbucks centers. It

also does not promote items or services through its public address system. Target designs

its stores to be more attractive than Wal-Mart and other large box-department stores by

having wider aisles, drop ceilings, a more attractive presentation of merchandise and

generally cleaner fixtures. In addition, special attention is given to the design of the store

environment: Graphics reinforce Target's advertising imagery and shelves are dressed

with contemporary signage, backdrops and liners, often printed on inexpensive material

such as paper, corrugated and foam boards. Some stores—particularly those around

international airports—have a bull’s-eye painted on the roof that can be seen from above:

the Alexandria, Virginia store, near Washington National Airport is one such Target unit,

as is the Rosemont, Illinois store next to O'Hare International Airport.

Target calls its customers "Guests", its employees "Team Members", and its

supervisors "Team Leaders". Also, managers are known as "Executive Team Lead

(ETLs)" and the Store Manager is known as the "Store Team Leader". This practice was

derived in 1989 from The Walt Disney Company.

Target stores do not sell firearms. In the early 1990s, they stopped selling toy

guns that looked realistic and limited its toy gun selection to ones that were brightly

colored and oddly shaped. They do not sell tobacco products and have not sold cigarettes

since 1996.

Target has many exclusive deals with various designers and name-brands,

including Michael Graves, Mossimo Giannulli, Fiorucci, Liz Lange, and Converse among

others. To further increase their fashion profile, Target also created its fashion-forward

Go International line, which hires famous designers to design collections available only

for a few months. Target, after hiring architect Michael Graves to design the scaffolding

used to renovate the Washington Monument and contributing $6 million USD to the

restoration plan, introduced its first designer line of products in 1999, the Michael Graves

Collection of house wares and home decor products. Wal-Mart and Kmart have followed

Target's lead by signing exclusive designers to their stores as well. Target also partners

with well-established national brands to create exclusive collections for its stores.

Recently, Sony created a line of electronics under the Sony LIV name geared toward

women. The collection included a CD player that resembled a purse and a CD player that

was equipped to be mounted under the kitchen counter. Another example of this is Target

having an exclusive deal with Food Network for selling DVDs of TV shows featuring

popular chefs such as Rachael Ray, Alton Brown, and Paula Deen. In July 2006, Target

started selling two-tone pink edition Apple iPods through a partnership with Color ware.

Sometimes manufacturers will create red-colored items, exclusively for Target. In 2002,

Nintendo produced a red special edition variant of the Game Boy Advance, which

featured the Target logo above the screen.

In 2005, IFC began a partnership with Target to promote a selection of

independent films, both in Target stores and on IFC Monday nights at 9:00 p.m. Eastern.

Originally titled IFC Cinema Red, the promotion was re-branded on air as The Spotlight

in 2007. The in-store headers refer to the selected titles as IFC Indies - Independent films

chosen for Target by the Independent Film Channel.

The Target Gift Card is the retailing division's stored-value card or gift card.

Target sells more gift cards than any other retailer in the United States and is one of the

top sellers, by dollars and units, in the world. The unique designs of their cards contribute

to their higher sales, as well as Target's policy of no expiration dates or service fees. Past

and current designs include lenticular, "scratch and sniff" (such as peppermint during the

Christmas season), glow in the dark, LED light-up, a gift card on the side of a bubble

blower, a gift card that can function as a CD-ROM, and even a gift card that allows the

sender to record a voice message. A current environmentally friendly gift card is made

from bioelectric manufactured from corn. Target rolled out a new MP3 player gift card

for the 2006 holiday season. It holds 12 songs and must be purchased with an initial value

of at least $50. Some of these unique design ideas are patented, and these patents are

assigned to the Target Brands subsidiary. For example, some such Target Gift Card

designs feature a wooden front side. On May 24, 2005, the United States Patent and

Trademark Office granted U.S. patent D505, 450 for the "ornamental design for a credit

or stored value card with wood layer" to inventors Amy L. Lauer and John D. Mayhew.

U.S. patent 7004398, for the "stored-value card assembly including a stored-value card,

an edible product, and a wrapper", was granted to Michael R. Francis and Barry C.

Brooks on February 28, 2006. Both patents have been assigned to Target Brands, Inc.

Target Gift Cards are also collector’s items. Some of the first gift cards issued is

valued at over $300 (even though the card doesn't have any money on it). Every year

Target introduces new Holiday Gift Cards. In 2007, Target's Holiday Gift Cards featured

a wind-up flashlight, a musical gift card, a gift card that lights up, and a scented gift card.

Target Clear Rx prescription bottles. In 2005, Target introduced a major revision

of prescription bottles, which it calls the Clear Rx system. The redesigned bottles are

color coded, flattened-out and turned upside down providing more room for the label.

This system was based on the patent 61 by student Deborah Adler and was named one of

Time's "Most Amazing Inventions of 2005".

Target Corporation is consistently ranked as one of the most philanthropic

companies in the country. It ranked #11 in Fortune Magazine's "Top 20 Most Admired

Companies" for 2007, largely in part to the donation efforts of the company as a whole.63

According to a November 2005 Forbes article, it ranked as the highest cash-giving

company in America in percentage of income given (2.1%). Target donates around 5

percent of its pre-tax operating profit; it gives over $3 million a week (up from $2 million

in years prior) to the communities in which it operates. It also gives a percentage of

charges from its Target Visa to schools designated by the cardholders. To date, Target

has given over $150 million to schools across the United States through this program.

Target's corporate by-laws state it must give 5 percent of its pre-tax profits to charity.

Further evidence of Target's philanthropy can be found in the Target House complex in

Memphis, Tennessee, a long-term housing solution for families of patients at the city's St.

Jude Children's Research Hospital. The corporation led the way with more than $27

million in donations, which made available 96 fully furnished apartments for families

needing to stay at St. Jude over 90 days.

Target has a standard no-solicitation rule at its properties, as it seeks to provide a

"distraction-free shopping experience for its guests." Exemptions to this policy were

previously made for the Salvation Army red kettles and bell-ringers outside Target stores

during the holidays through Christmas. In 2004, however, Target asked the organization

to explore alternate methods to partner with Target. Target donates to local Salvation

Army chapters through its grant program and annually to the United Way of America (the

Salvation Army is a member of the United Way coalition).

In 2005, Target and the Salvation Army created a joint effort called "The

Target/Salvation Army Wish List," where online shoppers could donate goods to the

organization for Hurricane victims by buying them directly from Target.com between

November 25, 2005, and January 25, 2006, In 2006, they created another joint effort

called "The Target and Salvation Army Angel Giving Tree," which is an online version

of the Salvation Army's Angel Tree program; 68 in addition to donating proceeds made

from the sales of limited edition Harvey Lewis angel ornaments within Target's stores.

During the Thanksgiving holiday of 2006, Target and the Salvation Army partnered with

magician David Blaine to send several families on a shopping spree the morning of Black

Friday. The challenge held that if Blaine could successfully work his way out of a

spinning gyroscope by the morning of Black Friday, then several families would receive

$500 shopping certificates. The challenge was completed successfully by Blaine.

During disasters, Target has been a major benefactor for relief efforts. Target

provided monetary and product donations during the September 11 attacks; it also

donated money for relief efforts for the 2004 tsunami in South Asia and donated $1.5

million (U.S.) to the American Red Cross in the aftermath of Hurricane Katrina in 2005.

It also allowed its store properties in the affected area to be used as command centers for

relief organizations. It also donated supplies such as water and bug spray. Besides these

major disasters, Target also regularly lends support to disasters that are not as well known

or only affect a regional area.

Environmental record

Target Corporation agreed to reduce their sales on all materials containing

polyvinyl chloride (PVC). Testers found toxic lead and phthalates and large amounts of

PVC in toys, lunchboxes, baby bibs, jewelry, garden hoses, mini blinds, Christmas trees,

and electronics. Several studies have shown that chemicals in vinyl chloride can cause

serious health problems for children and adults. The University of Illinois Medical Center

in Chicago states that people who use products containing PVC can become exposed with

harmful toxic phthalates and lead, which eventually can become a big contributor with

dioxins. Lois Gibbs, executive director of the Center for Health, Environment and Justice

stated, "Target is doing the right thing by moving away from PVC and switching to safer

alternatives." Other companies reducing the PVC on their shelves include Wal-Mart,

Microsoft, Johnson & Johnson, Nike, and Apple. Target stores have been taking

environmental measures by reusing materials within their stores and recycling certain

products like broken hangers, cardboard, rechargeable batteries, etc. Target is beginning

to reduce energy use with energy-efficient storefronts, and reducing waste with recycling

programs.

Target released a 13-page report in 2007 that outlined their current and future

plans for becoming more earth-friendly according to LEED. Such efforts include

installing sand filtration systems for the store's wastewater. Recycling programs will be

aimed at garment hangers, corrugated cardboard, electronics, shopping carts, shrink wrap,

construction wastes, carpeting and ceiling tiles and roofing materials. All stores in

Oklahoma will be partnered with Oklahoma Gas & Electric to exclusively use wind

power for all Target stores in order to reduce Carbon emissions. Stores nationwide use

only LED and fluorescent lights and low-flow restrooms that reduce waste water by 30%.

Some Target stores are installing roof gardens or green roofs, which absorb storm water

and cut down on surface runoff, mitigate temperature fluctuations and provide habitats

for birds. There are currently four green-roof Target stores in Chicago.

Target carries over 700 organic and alternative products from brands such as

Archer Farms, Burt's Bees, and Method Products. They also sell clothes made from

organic cotton, non-toxic cleaners, low-energy lighting and electronics, non-toxic and

non-animal tested cosmetics, and furniture made from recycled materials. As of June

2007, Target has been offering reusable shopping bags as an alternative to disposable

plastic bags. Target gift cards are made from corn-based resins. All of the stores'

packaging is done with a modified paperboard/clamshell option and has goals for phasing

out plastic wrap completely.

In collaboration with MBH Architects, Target's first "green" building was a

100,000+ square foot Target store built in 1995 in Fullerton, California. It was a part of

the EPA Energy Star Showcase for its use of skylights that cut the original energy

consumption by 24% with a 5-year payback. Target and MBH Architects were awarded

the "Green Lights Partner/Ally of the Year Award".

Target Forensic Services

In 2006, The Washington Post revealed that Target is operating two sophisticated

criminal forensics laboratories, one at its headquarters and the other in Las Vegas.

Originally, the lab was created as an internal need for the company to investigate

instances of theft and fraud and other criminal actions that have occurred on its own

properties. Eventually, the company began offering pro bono services to law enforcement

agencies across the country. Target's Forensic Services has assisted agencies at all levels

of government, including federal agencies such as the United States Secret Service,

Bureau of Alcohol, Tobacco and Firearms and the Federal Bureau of Investigation. The

labs have become such a popular resource for law enforcement that Target has had to

restrict its assistance to violent felonies.

Criticism

Practices that cause some concern include lack of a living wage certification, lack

of labor unions, and Target's contribution to urban sprawl. Liza Featherstone,

contributing editor to the "The Nation" magazine and author of Selling Women Short:

The Landmark Battle for Workers' Rights at Wal-Mart, stated the following in an

interview.

In addition to Target's lack of labor unions, several employees have stated that,

during new employee training sessions, videos and lectures included strong anti-union

messages. Often, managers have threatened employees with losing their job if they are

caught trying to organize a union, similar in fashion to Wal-Mart's practices.

In 2002, the company was alerted to sporting caps and shorts having the number

"88" embroidered on them. This number has been used by known white supremacist

groups as slang for "Heil Hitler". A customer informed the company of the offensive

merchandise. Target did not pull the merchandise or issue public apology until the

Southern Poverty Law Center echoed its concern and the media began reporting on the

issue.

In 2004, the company's decision to bar the Salvation Army from soliciting

donations at its stores generated much negative publicity In addition; Target refuses to let

Toys for Tots collect toys on their properties.

In 2005, Planned Parenthood protested Target policy involving a conscience

clause that allows pharmacists to refuse to dispense the emergency contraceptive, Plan B

Levonorgestrel, based on religious beliefs, as long as the employee ensures that the

prescription is filled by another pharmacist in a timely manner. Defenders of Target

applaud the company for upholding the employee's freedom of conscience, while critics

feel this policy fails to uphold the pharmacist's duty of care.

In November 2005, the American Family Association criticized Target and other

retailers for not using the word "Christmas" in its holiday advertising. Target responded

by introducing words like "Christmas" and "Hannukah" on its website and in-store

signage, and by showing holiday ads that included the phrase "Merry Christmas".

In July 2007, Target Corporation was fined $120,000 by the United States

Environmental Protection Agency for selling outlawed aerosol confetti string. The EPA

said that the fine stemmed from Minneapolis-based Target's sale of Horrible Spooky

String, a children's spray able confetti product that violates the Clean Air Act because it

contains banned hydro chlorofluorocarbons (HCFC). Such chemicals deplete the ozone

layer and their sale or distribution in "non-essential" products has been prohibited in the

United States.

Diversity

Target defines diversity as individuality. The company state this individuality

may include a wide spectrum of attributes such as personal style, age, race, gender,

ethnicity, sexual orientation, language, physical ability, religion, family, citizenship

status, socio-economic circumstances, education and life experiences. The Target

employee diversity program is called "The Strength of Many, The Power of One." It

specifically seeks to work with vendors and contractors that are owned by minorities or

women. It has long extended domestic-partner benefits to straight, gay, and lesbian

employees. It has received an 86 on the Human Rights Campaign Corporate Equality

Index Score. In addition, Target Corporation was named one of the "100 Best Companies

for Working Mothers" in 2004 by Working Mother.

The National Association for the Advancement of Colored People has repeatedly

given Target failing grades on its annual Economic Reciprocity Initiative report card, a

measure of the company's "commitment to the African-American citizenry". In 2003 and

2005, the NAACP has rated Target an "F" on this report; in 2004, Target was rated a

"D-". In 2006, when Target was asked why it didn't participate in the survey again, a

representative explained, "Target views diversity as being inclusive of all people from all

different backgrounds, not just one group."

Major sponsorships

The Target Chip Ganassi Racing Indy Car visiting Purdue University. Target

owns the naming rights to the Target Center and the forthcoming Target Field in

Minneapolis. It also sponsors the NASCAR and is a long-time sponsor of the Indy Car

racing teams of Chip Ganassi Racing. In the 2002 and 2003 NASCAR seasons, the #41

Chip Ganassi Target cars was driven by Jimmy Spencer; for the 2004 season and 2005

seasons, Casey Mears drove the car. In 2006, Reed Sorenson took over the #41 when

Mears moved to a different Chip Ganassi car on the same team. Sorenson still drives the

car and Target has also had some major sponsorship time on the Ganassi Racing #40 car

with Dario Franchitti and Jeremy Mayfield who subbed for the injured Franchitti. The 40

team has since been shut down.

Target Corporation is also a major sponsor of the annual Minneapolis

Aquatennial, where it hosts the Target Fireworks Show. It is the largest annual fireworks

show west of the Mississippi River, and the fourth largest annual fireworks show in the

United States.

Target also sponsors the Museum of Modern Art in Manhattan, New York. It

hosts Target Free Friday Nights, providing to all visitors free admission to the museum

during Fridays after 4 p.m. A similar Target-sponsored program at the Los Angeles

County Museum of Art called "Free after Five" provides free admission in the evening

throughout the week. Tuesdays are free at the Museum of Contemporary Art in Chicago,

Illinois, courtesy of Target. In its hometown of Minneapolis, Target sponsors the Target

Free Thursday Nights at the Walker Art Center, where admission is free after 4 p.m. as

well as in its sister-city Saint Paul hosting "Target Third Free Sundays" at the Minnesota

Children's Museum. In Boston, Massachusetts, Target sponsors $1 Friday Nights at the

Boston Children's Museum from 5:00 - 9:00.

Target is the founding sponsor of the Weekend America radio program.

Target often supports major awards shows such as the Oscars, Emmys, Grammys,

and the Golden Globes. Organization Target Corporation the Corporation or Target

operates large-format general merchandise and food discount stores in the United States

and a fully integrated online business, Target.com. Our credit card operations represent

an integral component of our core retail business, strengthening the bond with our guests,

driving incremental sales and contributing meaningfully to earnings. We operate as a

single business segment. While Target has been outpacing rival Wal-Mart in comparable-

store sales gains, home furnishings has been among the retailer's weaker categories this

year, due in part to "constant change of floor sets, packaging and signage in the area,"

according to a report

SWOT Analysis Strengths

• Target is an innovative and influential retail store. Their mission statement

focuses on four core roles: great guest service, clean stores, in stock merchandise, speedy

checkout. These guidelines make up the culture of the fast, fun and friendly stores.

• Target focuses on new ideas and exclusive products, such as Clear Rx. This

invention has grossed the company over 7% of their total sales and contributes to about

33% of the guests.

• Target is committed to having their location accessible to many of their current

and potential guests

• Top designers have signed agreements with Target to sell their items at

affordable prices under an agreed upon name. For example, Victoria’s Secret produces

the Gillian O’Malley lingerie line.

• In some states, the police department will rely on Target’s Asset Protection

systems to catch thieves and monitor fraudulent activity. Weaknesses

• Target is not global retailer, which means that they do not have a presence in

countries worldwide. They should definitely look into traveling overseas, since their

competitors are working internationally and boosting revenues.

• Pharmacy guests account for over 7% of their total sales. The turnover rate for

Pharmacists is very high, since they are required to work 12-hour workday schedules.

• Target has a reputation for new product development and creativity.

Opportunities

• Gift cards can now be used in both the store and on the Internet, thus leading to

more sales and reaching the computer literate market

• To take on competitions plans (i.e., Wal-Mart) and focus on opening stores in

international markets

• New locations give Target the opportunity to be diverse in the market. More and

more Targets are attaching to trendy malls in different market segments.

Gregg Steinhafel, president of Target Stores, blamed "the fundamental driver of

the weak home performance on the pace of the recent changes in the house wares, home

decor and domestics categories," the ...

Target doesn’t build stores in towns with populations of 4,200 or 3,300 and it isn’t

on their agenda (as far as I know).

Target: The people greeter smiled and asked, “Can I help you?”

“Where are the lunch boxes?” I asked. She whispered something into a

microphone on her chest, paused, and said, “Behind aisle 8 against the back wall.”

Target had ten lanes open and two with no line. In less than ten minutes, I found

what I wanted and left with a smile on my face.

I don’t know if Target offers higher pay or better benefits but I can tell that they

attract different employees; employees that care. Wal-Mart employees appear indifferent.

Happy Customers

At the Target store near my home, I see energetic customers smiling, visiting, and

laughing. At Wal-Mart I see people moping around with frowns, yelling at their kids, and

everyone looks depressed.

Better Parking Lots

Wal-Mart: One way, narrow, and angled. I’d show you how bad it is but Wal-

Mart could sue me if I post a picture of their store. Yet another reason to love ‘em.

Did you know that most Wal-Marts allow people to camp in their parking lots? Is that

safe?

Target: Square, two way, parking lots which are safer and easier to navigate.

Positive Atmosphere Wal-Mart’s atmosphere is cheap and crass.

Target’s atmosphere exudes progress and style.

Go to each store and soak in the whole scene and you’ll know what I mean.

Wider Aisles

Wal-Mart: I’d show you how narrow, crowded, and disorganized their aisles are

but…Wal-Mart could sue me if I post a picture of their store.

Target: Wide spacious aisles I have both a Wal-Mart and a Target five minutes from my

house. There is no comparison in the shopping experience. My first priority in life right

now is to maintain a positive mental state. I’ve found it nearly impossible to maintain a

positive mental state inside a Wal-Mart store. The place oozes negativity.

When I leave Wal-Mart I feel like I should go home and shower, like I’ve just

visited a seedy porn shop or something. When I leave Target, I feel energetic and I want

to return.

Positive thinking tip:

Visit Target frequently and stay out of Wal-Mart.

Now, after a long string of declining sales at those divisions, more and more

industry analysts are saying the discounter would be better off without the two units.

"Mervyn's & Marshall Field's continue to implode, and there is no sign of stabilization,"

Todd Slater, analyst with Lazard Freres & Co., wrote in a research report late last year.

Other analysts have issued similar comments. For its part, Target insists it is sticking with

its commitment to improve results at the underperforming chains. The frustration is that

Target's overall sales growth -- which outpaced No. 1 rival Wal-Mart (WMT: Research,

Estimates) in five of the past six months on the back of robust sales at its discount stores

-- would be even better if the retailer let go of the dead weight, a move that could boost

profits and the company's stock price. Minneapolis-based Target (TGT: Research,

Estimates) operates some 1,200 Target discount and "super" stores, the latter also

carrying groceries. Mervyn's 265 stores offer mid-priced clothing, mostly in California,

and Marshall Field's has 62 stores in the Midwest.

Department store doldrums

Target's second- and third-quarter results felt the impact of weakness at the two

divisions. Sales at stores open at least a year tumbled 7.9 percent in the second quarter at

Mervyn's and 11.1 percent in the third quarter.

"Comparable-store" sales slipped 2.4 percent at Marshall Field's in the second quarter and

4.9 percent for the third.

1. Safe issue with unloading truck at target stores. And cost that they loss each year.

2. need to improve how the stock of predation is done so that the shirt is all way full.

Threats

Target Corporation

Introduction : Target is a superstore designed to sell a more stylish product at

affordable price. Their stores include all different types of products ranging from clothes

to furniture, to electronics and household products. They are an upcoming store with

excellent growth potential in a wide competitive market. Target is well positioned to

learn from Wal-Marts mistakes as well as some of their other competitors.

SWOT SUMMARY

I. Strengths - Target is well positioned to experience sustainable growth through

its solid customer base, exclusive product lines, positive marketing, and its growing

credit card business.

II. Weaknesses – Target is a company that could improve in several different

areas including their strategic operations, strategies about pricing, advertising to their

customers, dealing with their two other divisions, and future investments.

III. Opportunities -

IV. Threats – Target is company that has threats from different sources. They

have competition from different products and companies, a gap in production, and threats

that are involved with who invests in this company.

Strengths

Sustainable Growth Potential

In 2004, there were 1,172 Target and 136 Super Target giving a combined total of

1,306 stores. Total square footage has increased 8.2% from 2003 and the company has a

strong network of 25 warehouses in place supplying their stores. In times past, stock outs

occurred at stores hurting sales and steps have been taken over the last few years to build

up the infrastructure supplying the stores. Target is growing at a sustainable rate and

plans on operating about 2000 stores by the end of the decade. Target should not

experience cannibalization like Wal-Mart is experiencing for some time since there are

not nearly as many Targets as there are Wal-Marts.

Reference:

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ID=ffffrfccfffjsjrkff&FRID=300

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“Proxy Statement: Annual Meeting of Shareholders” 2005. (Target). 18, May,

2005. Published by: Target Corp.

“Quotes and Info: Target Corp.” 2005. Yahoo Finance. 18 November, 2005.

http://finance.yahoo.com/q?s=tgt

Target Corporation Annual Report 2004, 2005. Target Corporation 21 October,

2005. http://media.corporate-

ir.net/media_files/irol/65/65828/reports/2004_TGT_annual.pdf

“Target Corporation” 2005. Target Corporation. 21, October, 2005.

http://sites.target.com/site/en/corporate/page.jsp?contentId=PRD03-000482

Target Corporation” 2005. Wet Feet. 11, October ,2005. Available:

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