TARGET
Project by Erin Adamson & Gavin Matesich
3rd Block
September 2012
Introduction
 Target Corporation
 Started in1902 in Minneapolis,
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Minnesota
Officially named “Target” in 1962
when the first Target store was built
in Roseville, Minnesota
Original plan was to create an
upscale discount store
Has stores in every state but Vermont
97% of Americans recognize the
Target bulls eye logo
Taget’s 1968 logo
Target’s current logo
 Target was started in 1902 by George
History
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Dayton.
The first store was built in Minneapolis,
Minnesota. It was originally called
“Goodfellows.”
In 1962, Dayton built the first Target store
in Roseville, Minnesota.
In 1967, the corporation goes public and
offers sales of stock.
In the 1970’s, the corporations profits top
$1 billion for the first time
In the 1980’s, the corporation’s profits top
$10 billion.
In the 1990’s they offer a discount card
and open their first SuperTarget
Celebrated their 40th anniversary in 2002
In 2005, Target’s revenue exceeded $50
billion
Now expanding into the grocery market,
stocks have been up!
Company Details
 CEO: Gregg Steinhafel
 Headquarters: Minneapolis, Minnesota
 Number of stores: 1,743
 Company revenue: $65.357 billion in 2009
 Company net income: $2.488 billion in 2009
 Employees: 351,000 in 2009
 Multinational: no
 Ticker Symbol: TGT (NYSE)
 Website: www.target.com
Industry
 Target is a retail store that provides public goods
 Target stores carry clothing, shoes, accessories, sporting
goods, pet supplies, toys, health and beauty products,
furniture, bedding, electronics, and nonperishable food items
 Some Targets also carry groceries and fresh produce
 Target has worked with major designers for their clothing,
accessories, and shoe lines, including: Michael Graves, Issac
Mizrahi, Mossimo Giannulli, Liz Lange, and Converse
Competition
 Target’s major competitors are Costco, Wal-Mart, and Kmart
 It differentiates itself from its competitors by having more
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upscale items that attract higher income shoppers
The average income of a Target shopper is $63,000
Most of the shoppers at Target have attended college and
earned college degrees
They have tried to attract more customers with clean stores,
wider aisles, and colorful graphic displays
Recently, some Targets have begun carrying groceries to
further compete with Super Wal-Marts
Competition
Target Corporation has established somewhat of a niche in
the retail industry. The company is expanding its stores that
offer fresh produce, and is generally well-regarded when it
comes to both fashion and home goods. In addition, the
company usually leaves its primary aisles clear for customers,
versus its competitor Wal-Mart who normally places
displays in the middle of the main walkways to squeeze more
selling space out of each store. While these displays do offer
more selling space, customers many times complain that the
stores feel cramped. While it's true that online competition
such asAmazon.com presents a challenge, Target is taking
steps to insulate itself.
Stocks
 Day’s range of stock prices: $64.67
 Stock value on January 15, 2008: $49.87
 Stock value on January 14, 2005: $46.15
 Stock value on January 14, 2000: $69.25
 Summary: Target stocks have remained stable over the last
several years staying in the $40 - $70 range. The stocks were
probably higher in 2000 because Target has just rebranded
itself and was attracting a lot of customers and public
attention. Also, we were not experiencing a recession at that
time. Stock prices are likely higher than usual right now
because of the back-to-school shopping rush.
Headlines
 Target Stores Will Host Best Buys’ Geek Squad (August 9, 2012)
http://www.bizjournals.com/twincities/morning_roundup/2012/08/in-testtarget-stores-will-host-geek.html?ana=yfcpc – Starting this fall, Best Buys’
Geek Squad tech repair group will be hosted inside Target stores. This is great
news for Target, but shows how much Best Buy is struggling in the market.
 Back to School Sales Boost Retail Stocks (Aug. 30, 2012)
http://finance.yahoo.com/news/back-school-sales-boost-retail191832232.html – this article discusses the positive impact that back-to-school
demand has created for retail stores like Target
 American Retailers Face Challenges in Expanding to Canada (Sept.
14, 2012) - http://www.nytimes.com/2012/09/15/business/americanretailers-expanding-to-canada.html?partner=yahoofinance – this article
explains that a weak Canadian dollar and higher startup costs have prevented
many large American companies from opening stores in Canada, that is until
now. Target plans to open 123 stores in Canada.