The Fiscal Health Of Target Corporation

Target Corporation is an evolving company. Target has great expectations for its future. For the year 2015, Target aims to expand its experience in order to effectively alter their customer’s expectations and shopping behavior. Target’s industry outlook starts with opening fifteen new stores for the year. The strategic store growth plans focus on localization and customer experience. Target will establish new store formats such as TargetExpress and CityTarget, while also offering new experiences, merchandising layouts and innovations in its general merchandising stores. (Target.com) The retailer’s TargetExpress is the smallest store format at approximately 20,000 square feet and aims to provide customers with effective quick trip shopping experience.

With the down turn in the economy, many consumers have turned to Dollar General and Dollar stores; this has caused a decrease in Target’s revenue. Another threat is Wal-Mart and their ability to offer lower prices on their products compared to Target which makes them the low cost leader. (ehow.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).

In addition to Target Corporation’s retail stores, there are several other key lines of business as well. Target Commercial Interiors provide goods and services for the office environment. Target.com is an online presence and marketplace that provides a retail website for the public. Target Financial Services provides financial products including the REDcard program. Target marketing also plays a large role in the business with their mottos including “Expect More, Pay Less” and the more recent “Hello, Goodbye” television marketing campaign.

Target Corporation is known worldwide as a large retail chain that brings in millions of dollars each fiscal year. The ability to remain competitive in a saturated industry could prove difficult to some retailers, but Target remains one of the leaders in the retail market. With success comes risk. Target Corporation competes against online retailers as well as “big box” stores to remain competitive.

This section primarily attempts to provide a better understanding as to how the 2013 data breach impacted Target’s finances. Because the breach occurred within Target’s fourth quarter 2013 period—between November 2, 2013, and February 1, 2014—financial analysis was gathered primarily from information provided in Target’s 2013 quarterly reports, 2012 and 2013 annual reports. This analysis will be divided into four parts. The first is an analysis of the company’s quarterly revenues and net earnings and how it measures year-over-year. The second assesses the company’s profitability through ratio analysis. The third segment gauges Target’s 2013 fiscal year performance with that of its biggest competitor, Walmart. The fourth and final segment looks at whether or not Target was able to regain its customers in the years that followed.

Target Corporation is an American retailing company that uses various retail formats that range from low-end to high-end items. It was founded in 1902 by George Draper Dayton. It is now the fourth largest retailer in the United States and operates almost 1600 stores in 47 states (Funding Universe, 2004). Target differentiate themselves by other competitors by offering consumers fashion products and grocery at affordable prices, that drags the customers into purchasing more. A typical Target store averages from 145,000 square ft by 126,000 square ft. (Funding Universe, 2004). The stores are spacious, with a display of a grid format, which concludes in consumers shopping for items that are put on long gondolas so less space would be wasted.

The prices are low portraying them as a high volume and low cost full-line discount store. The product quality is of average to good quality. Target provides an average level atmosphere to its customers. It does not provide specialized customer service, but rather at a concentrated or focused area. Target promotes its products and its discount retailer by using newspapers and online advertisements.

Given that Target Corporation prides itself on being a discount retailer, it is inherit that there are certain built-in advantages over other retailers. This is especially true during challenging economic times. Target Corporation’s main goal is to provide higher quality products under their brand name at a discounted price. In comparison, Target’s two closest competitors, Wal-Mart and Costco, carry lower quality products as their brand name. Therefore, consumers who desire discount prices, but higher quality merchandise knows that Target is

Over the years Target has established itself as the second largest discount store in America. Falling behind Walmart, Target has experienced periods of strong growth but has recently encountered problems that have caused concern with those within the organization as well as external analysts. One of the biggest problems Target is facing currently is generating consistent customer traffic into its stores as many of their major departments are continuously loosing money and causing customers seek out other product alternatives. A major contributor to this problem is that it is spreading itself thin by offering too much without establishing a competitive advantage and not firmly establishing itself in denser city locations.

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

TARGET CORPORATION RELEASES ITS NEW CORPORATE STRATEGIES TO COUNTER DATA BREACHES AND STRATEGIES TO INCREASE ONLINE SHOPPING AMONG ITS CUSTOMERS

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.

​The US Retail segment includes Target’s online business, its general merchandise stores, and SuperTargets (Reuters, 2013). Target.com is designed to allow guests to purchase products directly from online and/or to assist them in locating the product in a store near them. To aid in differentiating themselves, Target uses the web platform to sell not only its general merchandise, but also to introduce six brands sold exclusively through this medium (Target Brands, Inc., 2013c). The online presence aids in the vision of the company by offering multiple channels through which a customer can interact with Target. The brick and mortar stores of the US Retail segment offer general merchandise and groceries through the discount chain. Target and SuperTargets differ in that SuperTargets offer a

Target is a US based store which has home items as well as clothing for women and men as well as accessories you can get from this store and has a discounted way to avail diverse assortments you have plans to buy through and it is importance that holds a lot of weight when you buy online from this store.