About Tcc Cooking Co.

Cheap-but-chic Target is the US's #2 discount chain (behind Wal-Mart ). The fashion-forward discounter operates 1,800-plus Target and SuperTarget stores across North America, as well as an online business at Target.com. Target and its larger grocery-carrying incarnation, SuperTarget, have carved out a niche by offering more upscale, trend-driven merchandise than rivals Wal-Mart and Kmart. Target also issues its proprietary Target credit card, good only at Target. Target sold its pharmacy and clinics business to CVS in late 2015 in a $1.9 billion deal.


The company operates in four product categories: Household Essentials, more than 20% of sales, offers pharmacy, beauty, personal care, baby care, cleaning, and paper products; Food and pet supplies., more than 20% of sales, offers dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, produce, and pet supplies; Apparel and accessories, 20% of sales, offers apparel for women, men, boys, girls, toddlers, infants and newborns, as well as intimate apparel, jewelry, accessories, and shoes; Hardlines, more than 15% of sales, offers electronics (including video game hardware and software), music, movies, books, computer software, sporting goods, and toys; and Home furnishings and decor, about 20% of sales, offers furniture, lighting, kitchenware, small appliances, home décor, bed and bath, home improvement, automotive, and seasonal merchandise such as patio furniture and holiday décor.

Geographic Reach

Operating across the US, Target's biggest markets by total sales are California, Texas, and Florida (together about 30% of total stores). The chain has 40 distribution centers. It has offices in 12 other countries to support various trading and shipping functions.

Sales and Marketing

The vast majority of Target's merchandise is delivered to stores through its network of 40 distribution centers. It also sells online through its website.

Financial Performance

Steady revenue growth over the last decade faltered in fiscal 2017 (ended January), sliding back to $69.5 billion - a 6% fall.

Sales in fiscal 2017 were impacted strongly by the sale of the pharmacy and clinics business in the end of 2015. Comparable store sales were also down 0.5%. Target witnessed a shift in its product sales: household essentials shrunk from 26% of total sales to 22% due to the pharmacy sale, while food, beverage, and pet supplies, apparel and accessories, and home furnishings and décor saw an uptick. Target's digital sales channel also saw uplift.

Net income fell 19% to $2.7 billion due to lower revenue. Cash generated by operating activities recorded a similar fall of 9% to $5.4 billion.


Target's foray into the Canadian market was met with disaster. Attracted to Canada's relatively-healthy retail market, Target purchased 124 stores from failed retailer Zellers. The ill-fated move saddled the Canadian unit with inconveniently located stores unable to accommodate Target's well-known layout. Opening so many stores at once in a brand new market strained the company's logistics infrastructure and left Canadians staring at empty shelves. Then big Wal-Mart defended its hard-won gains in the country by slashing prices and Target's hopes for the Great White North were swept away in a blizzard of red ink. The company took a huge $5.4 billion write-down in 2014 and took another $275 million in losses in 2015 to shutter the operations and close 133 stores. Cash costs to wind down the Canadian operations were between $500 and $600 million.

Perhaps as a result of its failed Canada expansion, Target in late-2015 sold CVS Health, its pharmacy and clinic operations for $1.9 billion. As part of the deal, CVS acquired more than 1,600 pharmacies from Target in 47 states, which are now operated under the CVS name in Target stores.

Going forward, the retailer's differentiation in the marketplace will be driven by a shopping experience that is centered on ease and inspiration, with mobile serving as the front door to all of Target. The retailer also plans to reassert its cultural leadership. In addition, Target plans to create a headquarters team that is more agile, efficient, and guest-focused.

Target revised its capital expenditure mix in 2017, reducing capital allocation to new stores and instead funneling money into existing stores and its IT and supply chain. Investment in stores includes remodels and guest experience enhancements. It also took out leases relating to future store openings worth a minimum of $550 million. Target expects capital expenditure to hit $2.0 billion for the first time in fiscal 2018.

Target's transformation road map includes a focus on areas like continued enhancements in technology, supply chain, and inventory management to create a shopping experience rooted in ease and inspiration; Style, Baby, Kids, and Wellness are being prioritized and will be the merchandise categories. It also plans to create a more guest-centric experience by offering more locally relevant products, and taking demographics, climate, and location into account.

Another key to Target's strategy has been its proprietary credit and debit cards (REDcards, collectively), which encourage customer loyalty and drive sales. The scheme has been tremendously successful, with sales paid with a REDcard shooting from 6% in 2010 to 24% in 2017. It shrugged off reputational losses in 2013 when a major data breach occurred and continued to grow.

Mergers and Acquisitions

In 2017 Target agreed to acquire Grand Junction, a start-up company that develops logistics software, to help improve delivery efficiency. The deal is part of Target's move to revamp its logistics to increase sales from its website and to compete against Amazon.com. Grand Junction handles same-day delivery arrangements for
Target in a part of New York City. With Grand Junction, Target is to expand same-day delivery to other cities in the US in 2018. Terms were not disclosed.

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Tcc Cooking Co.

1000 Nicollet Mall
Minneapolis, MN 55403-2542
Phone: 1 (719) 272-2600
Fax: 1 (719) 272-2624


  • Employer Type: Public
  • Chief Operating Officer Chief Financial Officer: Jim Gaston
  • Chief Executive Officer President: Tim Littleton
  • Director: Mona Vandeweghe
  • Employees: 120

Major Office Locations

  • Minneapolis, MN