Target Corporation
From Freepedia
| Image:TargetLogo.png | |
| Type | Public (NYSE: TGT) |
| Founded | 1962 Minneapolis, MN |
| Location | Minneapolis, MN |
| Key people | Robert Ulrich, CEO & Chairman |
| Industry | Retail (Department & Discount) |
| Products | Retail goods and grocery such as candy, clothing, office supplies, consumer electronics etc... |
| Revenue | Image:Green up.png$46.839 billion USD (2005) |
| Employees | 300,000 |
| Website | Target Corporate Site |
Target Corporation NYSE: TGT was founded in Minneapolis, Minnesota in 1962. It is the second-most successful discount retailer in the United States, behind Wal-Mart. It is the sixth largest retailer in the United States behind Wal-Mart, The Home Depot, Kroger, Sears Holdings Corporation, and Costco. [1] It is the largest company by revenue based in Minnesota. The Bullseye logo of the company and its stores is one of the most recognized corporate symbols in the U.S.
Contents |
History
The company was founded in 1902 when George Dayton opened a retail store in downtown Minneapolis. Originally known as the Dayton Dry Goods Company, it became the Dayton Company in 1910.
In 1962, the Dayton Company opened its first Target discount store in Roseville, Minnesota, a suburb north of St. Paul. By 1979, it would be the company's top revenue producer.
In 1969, the Dayton Company merged with the J.L. Hudson company. In 1978, the company acquired Mervyn's, and in 1990 it acquired Marshall Field's.
Dayton Hudson Corporation changed its name to Target Corporation in 2000; by then, more than 75 percent of the corporation's revenue came from the Target division. In 2001, Target Corporation announced that its Dayton's and Hudson's stores would operate under the Marshall Field's brand. The three brands had been operating as a single unit, the Department Store Division.
On March 10, 2004, Target Corporation announced it had hired Goldman Sachs Group to analyze options for selling its Marshall Field's and Mervyn's chains of department stores. Three months later, on June 9, 2004, Target Corporation announced its sale of the Marshall Field's chain and several Mervyn's stores to St. Louis, Missouri-based May Department Stores Company, which became effective July 31, 2004. On July 21, 2004, it announced the sale of Mervyn's 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.
Today, Target Corporation operates its retail division under the banner of 'Target'. The company owns several other subsidaries, which include:
- Target Financial Services (TFS), which issues the Target Visa and Target Guest Cards, issued through Target National Bank.
- Target Sourcing Services / Associated Merchandising Corporation (TSS/AMC), which locates merchandise from around the globe for Target and helps import the merchandise to the United States
- Target Commercial Interiors, which provides design-services and furniture for office space
- Target Brands, which owns and oversees the company's private label products
- Target.direct, which owns and oversees the company's e-commerce initiatives.
Retailing division
Target Corporation's discount retail chain in the United States has 1,411 stores in 47 states that operate under the mastheads of Target, Target Greatland, and SuperTarget. The first Target store opened in 1962 in Roseville, Minnesota. That store was closed and demolished on January 8, 2005, and replaced with a SuperTarget in the following September. Target Corporation has aggressive plans to have 2,010 stores open by the year 2010.
Target
Target stores are generally 95,000 to 125,000 square feet (12,000 m²) and carry hardlines ("normal" products and goods), softlines (clothing), and a limited amount of groceries, usually non-perishable. Specifically, Target stores carry clothing, shoes, jewelry, health and beauty products, electronics, compact discs, DVD, bedding, kitchen supplies, sporting goods, toys, pet supplies, automotive supplies, and food. They also carry seasonal merchandise such as patio furniture during the summer and Christmas decorations during November and December. Many stores also have one-hour photo processing, a Portrait Studio, an optical store, and a pharmacy in them. Stores opened in 2004 or later also include the expanded snack bar that is featured in Target Greatland locations.
Target Greatland
Image:Target greatland 1917.jpg
Target Greatland stores average about 150,000 square feet (14,000 m²) and carry a larger selection of general merchandise than basic Target stores. However, they do not have a full line of groceries. Prominent features include double entrances on single level stores along with an expanded snack bar. The snack bar may include a Pizza Hut Express, Rax Roast Beef, Taco Bell Express, and/or a Starbucks.
The first Target Greatland opened in Apple Valley, Minnesota in 1990 and has since been remodeled and expanded becoming a SuperTarget.
SuperTarget
SuperTargets are about 175,000 square feet (16,000 m²) and carry everything a smaller Target does in addition to a full-service grocery store, including produce, deli, meats, and baked goods. Many SuperTargets also feature a Starbucks coffee shop, a Pizza Hut Express, portrait studio, and an eyewear store operated as a concession.
The first SuperTarget opened [2] in Omaha, Nebraska in 1995, and the second SuperTarget opened in Papillion, Nebraska in 1996, about 13 miles (20 km) away from the first SuperTarget. Currently, Target operates over 140 SuperTarget stores [3].
Urban stores
While many Target stores share a fairly common layout, the company has been known to be flexible with its designs. There are about 30 multi-level stores in urban areas (including downtown Minneapolis), where a one-level Target is not practical. One unique feature used by these stores is a specialized escalator, called a Vermaport, used to transport shopping carts between levels. This concept has also been used to build Targets from former Montgomery Ward stores.
Differentiation
In order to create a niche for itself, Target is known for differentiating itself from competitors like Kmart and Wal-Mart by offering more upscale, trend-forward merchandise. In fact, Target refers to itself as a "discount department store" instead of just a discount store.
Some examples of how Target differentiates itself from competitors are:
- It does not play music in its stores, commonly known as elevator music and often distributed by Muzak
- Target calls its customers "guests" and its employees "team members". It derived this practice in the early 1990s from The Walt Disney Company.
- Target designs its stores to be more attractive than Wal-Mart by having wider aisles, drop ceilings, and a more attractive presentation of merchandise.
- Target has many exclusive deals with various designers, including Isaac Mizrahi, Mitchell Fravie, Michael Graves, Mossimo, and Liz Lange, among others. Wal-Mart and Sears Holdings Corporation (in both its K-Mart and Sears divisions) have followed Target's lead by signing exclusive designers to their stores as well.
Many of Target's biggest fans jokingly refer to the store as "Tar-zhay", as though it were a French word, a reference to its more upscale image compared to its competitors. This trend was believed to be started by Oprah Winfrey, when she used the French pronounciaton to refer to the store on her television show. This pronounciation has led many people to believe, incorrectly, that the company is French-owned.
Philanthropy
Target Corporation is ranked as one of the most philanthropic companies in the country. Target takes around five percent of their pre-tax operating profit; it gives over $2 million a week in the communities it operates in. 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 has a standard no-solicitation rule at its properties, as it wishes to provide a "distraction-free shopping experience for its guests". Exemptions to this policy were previously made for the Salvation Army to station its traditional red kettles and bell-ringers outside Target stores during the Christmas season. However, the company decided that it would no longer allow the Salvation Army to solicit on Target Stores' properties in 2004 because they felt it was a "guest distraction". Many religious organizations objected to this decision, and called for boycotts of Target; however, this has failed as Target's financials over the last year have been setting company records and Target's same-store sales have been outperforming Wal-Mart.
During disasters, Target Corporation is a major benefactor for relief efforts. Target provided monetary and product donations during the September 11th terrorist attacks on the U.S.; it also donated money for relief efforts for the tsunami in South Asia. Most recently, Target donated $(U.S.)1.5 million to the American Red Cross during the 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 its support to disasters that are not as well known or only affect a regional area.
Criticisms
Target Corporation faces criticism. Lots of negative publicity was generated from the company's decision to no longer allow the Salvation Army to collect donations at its stores (see Philanthropy section above).
Target also allegedly engages in many practices that rival Wal-Mart faces criticism for engaging in; however, because of Target's smaller size in comparison to Wal-Mart, Target often escapes criticism. In addition, many people may overlook Target's practices because of its successful marketing to differentiate itself as being more upscale. Some questionable practices, like Wal-Mart, that Target allegedly engages in include: low hourly wages (lack of living wage), lack of health care to part-time employees (although it does provide limited healthcare after six months of employment), opposition to labor unions, and its contribution to urban sprawl.
In 2002, the company came under criticism for carrying clothing with the number "88" embroidered on the clothing, which is known to be a white supremacist symbol. Target came under fire for not necessarily carrying the merchandise, but for their response. A customer informed the company of the offensive merchandise, but Target only responded with form letters and seemed to dismiss the customer's concerns. Only after the Southern Poverty Law Center and the media got involved, did Target pull the merchandise from its stores. [4]
Diversity
Target Corporation was named one of the "100 Best Companies for Working Mothers" in 2004 by Working Mothers magazine.
Major sponsorships
Image:Target indycar.jpg Target owns the naming rights to the Target Center in Minneapolis. It also sponsors NASCAR, Indy Car, and IRL racing teams of Chip Ganassi.
Target International
There is also a Target operating as a department store under the same logo and a similar style in Australia with over 250 stores. The brand in Australia is owned by Coles Myer. Target Corporation does not and never has operated stores outside of the United States.
Books
Rowley, Laura (2003) On Target: How the World's Hottest Retailer Hit a Bulls-eye John Wiley & Sons; Hoboken, New Jersey
Notes
- ^ List of largest retailers in the United States. Note: this list separates the retailing divisions of Sears Holdings. - in .pdf format
- ^ News Article detailing "88" controversy "www.bizjournals.com/twincities"
External links
- Target Corporation website
- Target e-commerce website
- Associated Merchandising Corporation website
- Target Australia website (no connection to the U.S. Target Corporation)
- Target Pharmacist Refuses to Fill Emergency Contraception Prescription
Categories: Companies traded on the New York Stock Exchange | Retail companies of the United States | Fortune 500 companies | Companies based in Minnesota
