Target Corporation Financial Summary

Target’s mission statement: “Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less brand promise.” (target.com)

Target Corporation (NYSE:TGT) is the leading large-format general merchandise and discount retailer in the U.S., challenging Wal-Mart in electronics, toys and apparel while also seeking to differentiate with higher-end fashions and products for an upscale audience. As of the close of their latest fiscal year (FY2011), Target operated approximately 1,760 stores encompassing 233,000 square feet in 49 states and the District of Columbia. The company is divided into the retail and credit card divisions and moves the majority of its products through a highly integrated network of 37 different distribution centers, which include four food distribution centers. Target is one of the most well-entrenched large format retailers in the U.S., has the ability to manage their pricing strategies at a level of accuracy and precision that is comparable to Wal-Mart (Henderson, 2001). Unlike Wal-Mart, Target concentrates on a value-based message that concentrates on quality and price differentiation to sustain their gross margins while Wal-Mart concentrates on supply chain efficiency and a continual reduction of supplier and transaction costs (Krishnamurthi, 2001).

Target is one of the largest retailers in the United States. Target wants to be able to give guests better quality products for a cheaper price. They also want to be the one stop shop. Target relies on their team members to keep the guests happy so they always come back again and again. Target Corp. is the nation 's #2 discount chain (behindWal-Mart). The fashion-forward discounter operates about 1,765 Target and SuperTarget stores in 49 states, as well as an online business at Target.com. Target and its larger grocery-carrying incarnation, SuperTarget, have carved out a niche by

Headquartered in Minneapolis Minnesota, Target Corporation is one of the largest chains of retail stores in United States and Canada (Stone, 1995). Founded in 1902, the chain now has more than 360,000 employees worldwide. The company operates nearly 1925 stores out of which 1795 stores are in the US and 130 stores are in Canada (NASDAQ, 2014). The business prides itself in a diverse portfolio of merchandise that their outlets houses, ranging from dry groceries to electronics, furniture, apparel and much more. Its distribution networks make use of third party vendors, direct shipping as well as distribution centers. It also operates a successful e-store target.com which offers customers a virtual one-stop shop for their needs.

The Target Corporation is a general merchandise retailer that opened up in in 1962 under the parent company of Dayton Corporation. This parent company was renamed the Target Corporation in 2000 and are based out of Minneapolis. There are over 1,800 Target stores throughout the United States which includes Targets and Super Targets. In 2005 Target began expansion in India and in 2011 to Canada however this expansion into Canada did not fare well and all Target Canada stores were closed by 2015. According to Forbes in 2005 they we ranked amongst the highest cash-giving companies in America with 2.1% given and they donate about 5% of its pre-tax operating profit. In 2010 Target was ranked number 22 by Fortune magazine’s World's Most Admired Companies.

The Target Corporation formerly known as “The Dayton Dry Goods Company” is a major retailing company that was founded in 1902 in Minneapolis, Minnesota by George Draper Dayton. It is ranked the second largest discount retailer in the United States and ranked thirty- sixth on the Fortune 500 as of 2013. The Target Corporation has been serving this nation with the best price possible goods since their expansion from “Dayton” and is continuously winning the hearts of consumers with their dedication and service. A phenomenal merchandising strategy and cross channeling has enabled this upscale discounter to serve their purpose of customer loyalty and fulfill their promise of “Expect more and Pay less”.

Target Corporation is a retail chain specializing in household goods, clothing, food, and accessories at discounted prices. The retail chain’s history started back in 1902 as Goodfellows and in 1910 as The Dayton Company. Initially, the chain specialized in “furnishings, fabrics and decorations for business and other public institutions” (“Target Corporation,” 2016, p. 5). Eventually, Target went public in 1967 and on to acquire Mervyn’s in the 1970s where they became the seventh largest retailer in the United States. Target operates in the United States, where it is headquartered in Minneapolis, Minnesota and as of January 31, 2015 Target employs over 300,000 people. “The company recorded revenues of $72,618 million in the financial year ended January 2015, the operating profit of the company was $4,535 million, [and] the net profit was $2,449 million” (“Target

This report examines Target Corporation’s performance in a detailed strategic audit. The audit includes an external, internal and strategic analysis as well as a recommended course of action. The findings of the audit recommend a robust on-line/mobile presence to complement in-store sales, and to increase future earnings to remain competitive by building upon physical assets, brand value and logistical capabilities.

“We fulfill the needs and fuel the potential of our guests…making Target your preferred shopping destination…by delivering outstanding value, continuous innovation, exceptional experiences…Expect More. Pay Less @ brand promise.” (CorporateTarget) In addition to fulfilling the needs of its guests and providing outstanding value of services, the company is also committed to proving services and relationship to its community, internal and external organization. Target’s objective focuses on its leaders, employees and to fulfill its consumer’s needs by offering excellent value of its brand. To gain competitive advantage and differential advantage, a Target’s corporate created a strategic unit marketing to provide multiple services to its consumers. Additionally, Target also offers its product brand to differentiate from its competitive market. Target retail store sells multiple products to provide its customer a single solution for its shopping destination. “Many organizations manage their differing…by providing customers a single-branded solution across multiple markets.” (Ferrell, Hartline, 2014) Target Corporation created a corporate strategy to have the opportunity and competitive advantage such as valuable products for fewer prices for a successful marketing

Target’s Management Discussion and Analysis, item 7 in their Form 10-K, valued several noteworthy items contributing to their fiscal 2016. Key standout points addressed by management included: 2016 in-store sales decreased .5% because of a .8% decrease of in-store foot traffic, digital channels experienced a 27% growth in sales which contributed 1% points of comparable sales growth, adjusted earnings per share were $5.01, returned $5.0 billion to shareholders through dividends and share repurchases. Furthermore, Target’s GAAP earnings per share from continuing operations were $4.58 in 2016 (Target Corporation, 2017).

Target is one of the best retail stores that sell general merchandise beside food and drug products. Target’s reputation has been built over many years and through their organized effort. Target’s goal is to sell goods and services to satisfy the society’s needs and increase their profit.

Target Corporation has recognized itself as one of the top retailers in the United States market on the basis of excellent service quality, customer experiences, operational excellence, strong financial position, and a wide array of product offerings. Through its high degree of service orientation at physical outlets and adoption of fair business practices, Target Corporation has become the most distinctive retailer in the eyes of its potential customers. Being one of the top-notch retailers in the United States, Target Corporation has to carefully strategize on its business operations and marketing tactics so as to keep itself in the row of competitive brands of the industry.

Target Corporation is a well-known American discount retailing company, founded in 1902 and is headquartered in Minneapolis, Minnesota. It is the second-largest discount retailer in the U.S. (Walmart being the largest) (Target, 2014). Target’s analysis will provide an insight into the corporation and its working. It look at and evaluate it in terms of terms of its effectiveness in each of these areas, such as: the structure, goals, agendas, boundaries, control, culture, politics, and decision-making processes. Based on the evaluation, this paper will help to provide suggestions for improvements within the different areas, if the need arises.

A) Target is discounter store and their headquarter is located in Minneapolis MN. The fashion-forward store operates 1,790 Target and SuperTarget store all over North America. Target has many products categories which are Household essentials, food, pet supplies, apparel, accessories, hardline for example electronics and toys, home furnishings, last but not least seasonal merchandise such as patio furniture and holiday décor. There isn’t any price point for Target but the price ranges 1-5,000 dollar. Target’s customer are more low middle class families and young guest who are seeking for style with low prices.

Results-focused: The results have been nothing short of sensational. Target is seeing far greater stability and performance of our key retail systems—things that power our stores’ cash registers, Target.com and the hand-held devices that store team members use. And we’ve also reduced our reliance on contractors and saved hundreds of millions of dollars that Target’s been able to invest in other areas of the business.