Essay On Target Corporation

Some of these numbers in comparison to other general merchandise retailers like Walmart, make Target look like a little fish in a big pond. Walmart’s revenues exceed 469 million, with a gross profit margin of 24.4% (Walmart, 2014). The massive amount of revenues extends from Walmart’s functioning in over 27 countries, compared to Target’s operations in the United States and Canada (Walmart, 2014). Also, Walmart has an operating income of $27.8 million, representing 5.9% of net sales is also below industry average of 6.62% (Morning Star, 2014). Which means that bigger numbers, do not necessarily means better financial health.

Target sells its products from the high end of the market to the low end depending on the type of product in question. In regards to Electronics items where the caption rate is small, they price their items at the high end to ensure they meet their margins. However, in regards to Target’s name brand items, they price those at the low end, keeping the company as a discounted retailer. Target also sells designer items that range from mid to high range of the market. In 2013 Targets CEO Gregg Steinhafel adopted the philosophy “a penny saved is a penny earned”. He further mentioned that they company would be a penny higher in price than their competitors Wal-Mart (Davis, M 2013). Steinhafel stated that “We want to be a penny

After the recession, Target’s value proposition shifted to simply offer affordable options in a wide array of product areas. However, now with better economic conditions and without the ability to offer lower prices than its affordable retail competitors, such as Walmart, and in order to stay relevant and refresh the company, Target needs to reposition itself as the high-quality concept and style-oriented retail store it was once known for.

Target achieved its differentiation in the marketplace by positioning its products and store experience as higher quality than its main discount competitors Wal-Mart, with lower prices than department stores. Target’s main focus is QUALITY product and at a LOW PRICE. It all began with the idea of, “fashionable, smart design…delivered at a competitive discount prices.” Target strives to deliver to customers a unique shopping experience. Target grabs customer’s attention by their big red bulls eye and customers keep going to target. But at the same time Target need to make sure that their shelves are stocked, they gave good customer service,

As the holiday season approached, analysts had expected Target’s earnings to be flat compared to the previous year, 2012, when the Minneapolis-based retailer posted fourth-quarter earnings at $921 million. However, after news of the breach and its ongoing investigation became public, many consumers, uncertain about the extent of the breach, chose to shop with Target’s competitors during the holidays. Target’s best public relations efforts could not completely ease consumer concerns. Sales in the last week of the holiday season fell by nearly 4 percent, compared to other retailers, which devastated the traditionally strong retailer as holiday sales account for 20 to 40 percent of annual sales. Target ended the quarter with $520 million in earnings, down almost 45 percent from 2012.

For over 50 years, Target has provided American consumers with quality products delivered with “a unique shopping experience” (“About Us”, 2015). The retailing giant, second only to Walmart Corporation, secured a Fortune 500 ranking of 36 this year making them one the Top 100 companies in the U.S. (“Target”, 2015). 2014 was a tough year for the company marked with many pivotal moments including the installment of a new chief executive officer.

Target currently pays a dividend out once a quarter and it’s currently at $.60 a share. In late September of 2016 Target began a $5 billion share repurchasing program. They are currently in good shape and should be able to spread the repurchasing plan out over a few

Target aim in keeping stores organized, clean and well-designed. Target has a great program which encourages individuals reading and getting involved in arts. Target’s environmentally conscious. They are building stores with energy efficient lighting and equipment and some stores are being built as “green stores.” The company aims for diversity and they believe “true excellence can be best achieved by focusing on areas of established strength and enhancing them rather than concentrating only on repairing areas of weakness”. I highlight a bit how Target’s financials are doing. “Net Income was unchanged at $704 million. However share repurchases including $549 million in the most recent quarter. Reduced the weighted average number of outstanding common shares by 3.2% over the last 12 months to 662.9 million, pushing earnings per share up 2.9 % to 1.06 per diluted share from $ 1.03 in the preceding year. Backing out losses related to Target’s Canadian market entry and partially offsetting tax credits in both years, adjusted earnings edged up 1.2% to 742 million or

Although Target, as a whole, is one of the most successful department stores in the industry with total revenues of 72.7 billion United States dollars as of January 1, 2015 (“Target Corporation Company…”). However, even with revenues as significant

The Target Corporation is a retail company that was incorporated in Minnesota in 1902. Target’s purpose and beliefs state that, “We will fulfill the needs and the fuel potential of our guests. That means making Target their preferred shopping destination by delivering outstanding value, continuous innovation and an exceptional guest experience—consistently fulfilling our Expect More. Pay Less. Brand promise”. It is the second leading discount retail store in the country, trailing behind Wal-Mart. The Corporation operates in three segments: U.S Retail, U.S Credit Card and Canadian. The U.S Retail Segment includes all of their U.S Merchandising operations, which offer everyday essentials and fashionable, differentiated merchandise at discounted prices. Their U.S Credit Card Segment offers credit to qualified guest through their branded proprietary credit cards: Target Credit and the Target Visa. The Canadian Segment includes cost incurred in the U.S and Canada related to their 2013 Canadian retail market entry. The Corporation 1,792 stores, 38 distribution centers in United States, 347,000 team members worldwide, an online business, and global locations in India.

Eugene, OR. November 15, 2014 – Target Corporation (NYSE: TGT) today released its strategic plan for the next five years after a security breach that soiled its digital sales business. The company introduces new services to its customers in a bid to increase its business. The measures include enhancing data security, increasing digital sales, expanding free shipping and adding more products into its product lines.

“In the fourth quarter alone, Target Corp. said its Canadian segment suffered a US$ 329-million loss before interest and taxes. The retailer generated US$ 623 million of sales in Canada but said it struggled with gross margins of 4.4%, reflected efforts to lower prices to clear excess inventory.” said Linda Nguyen from The Canadian Press. In January of 2014 Target’s Canadian arm released stats from their first year as a multinational brand. The results seemed to shock those who aren’t active shoppers, but many who visited Target locations, found them to be uninhabited with noticeably higher prices than the U.S.. Retail consultant Maureen Atkinson mentions how difficult it is for any retailer to survive in todays market. Retailers are all steadily competing for the consumers dollar, which makes newcomers lives exponentially more difficult. "There have been fundamental issues here (with Target)," said Atkinson, who is with the Toronto-based firm J.C. Williams Group. “They have to do better." Although professionals have justified the potential reasoning behind Target Canada’s lack of success, it does not seem to fully justify something as severe as a US$ 941 million loss. As of March 2014, it was released that

Losses at the company’s new Canadian operation should be reduced in fiscal 2015. Last year, Target opened 124 stores in the Canadian market. Due to start-up expenses, and intensified competition from Wal-Mart Canada and Canadian Tire, Target’s losses there were equivalent to $1.13 a share, and the pretax deficit was $415 million in fiscal 2014’s first half. Due to a very low gross margin of 18.5%, versus 30% for its U.S. stores, and poor leveraging of fixed expenses, the Canadian chain’s operating margin was negative 33.1%. As the new CEO Brian Cornell aiming to restructure the Target Canada operation, Target’s losses in Canadian market should be reduced.

Target had many competitors but the top two competitors that were a thret to target was Walmart and Costco. Costco tried to attract the same customers as target does but Costco used a membership fee. So that maid one big difference between both of them. Walmart is very similar to target and operate similar too but Walmart is the dominate company in the industry and operate around the world. Target had a capital expenditure approval process and they are made from a team of top executives that meet and review requests that are over $100,000. This time there getting together and discus 5 projects that represented almost 200 million in proposed capital investments. They know that any decision they made can impact the short term and long term profitability

Target is further ahead on its reversal attempts than Wal-Mart, which cautioned that benefits will miss its objective this year. Wal-Mart had $120 billion in worldwide income contrasted and $17 billion for Target. Target's spending intensely to staff stores and slice costs to produce even humble deals