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 stores across the US, as well as an online business at Target.com. It sells a broad range of household goods, food and pet supplies, apparel and accessories, electronics, decor, and other items under national brands as well as owned and exclusive brands. Target also sell merchandise through periodic exclusive design and creative partnerships and generate revenue from in-store amenities such as Target Café and leased or licensed departments such as Target Optical, Starbucks, and other food service offerings. The company also offers pharmacy and clinic services in its stores through an operating agreement with CVS Pharmacy
Target operates in five product categories that contribute from about 15% to 25% of total revenue: beauty and household essentials (including pet supplies), apparel and accessories, food and beverage, home furnishings and decor, and hardlines (electronics, software, sporting goods, toys).
Owned and exclusive brands such as Archer Farms (food), Cat & Jack (children's clothing), Room Essentials (home furnishings), and Up & Up (health and personal goods) account for about a third of revenue.
Minnesota-based Target operates across the US. Five states -- California, Texas, Florida, Illinois, and New York -- account for about 40% of total store locations and a significant portion of revenue.
The chain has some 40 distribution centers in the US, as well as offices in more than a dozen 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 distribution centers. It generates about 90% of revenue through its stores with the rest coming from mobile and online sales.
The company has had success cementing customer loyalty and driving sales with its proprietary credit and debit cards (REDcards, collectively). Nearly a quarter of sales are paid for with REDcards.
Target's advertising costs totalled $1.6 billion for 2019, and $1.5 billion each for 2018 and 2017.
After about a decade of pretty steady revenue growth, Target saw a 6% dip in fiscal 2016 (ended January 2017); sales rebounded a bit in fiscal 2017 and continue to increase in two consecutive fiscal year.
In fiscal 2019 (ended January 2020) the company reported revenue of $78.1 billion, up 4% from the prior year, driven by a comparable sales increase and sales from new stores.
Net income in 2019 increase 12% at $3.3 billion with the increase in revenue matched by an increase in costs of sales. Cash at the end of fiscal 2019 was $2.6 billion, an increase from the prior year of $2.6 billion.
Cash from operations contributed $7.1 billion to the coffers, while investing activities used $2.9 billion, mainly for capital expenditures. Financing activities used another $3.1 billion for dividends to stockholders and Target's stock repurchase program.
Amid all the buzz around digital sales and omnichannel experiences, physical stores are still of huge importance to Target's growth strategy. Its investments also include store redesigns and the opening of small-format urban stores. The company has remodeled 700 stores since 2017 and plans 300 more remodels by the end of 2020; it also plans to open more than 30 small-format stores in fiscal 2020. Target will also begin exploring sites for stores that are approximately 6,000 square feet – roughly half the size of its smallest small-format store – reaching even more guests in urban neighborhoods and on college campuses.
As part of its multi-year strategy, Target adds fresh grocery and adult beverages to its Drive up and Order Pickup services, new milestones for its small- format and remodel programs, and update to the retailer's supply and chain transformations. In 2019, Target offered guests more ease and convenience with Drive Up, which saw sales growth of more than 500 percent, and Order Pickup, which saw sales growth of nearly 50 percent. In 2020, Target will enhance these industry-leading same-day services by offering an assortment of fresh grocery and adult beverage items via Order Pickup and Drive Up fulfillment.
To increase the speed and efficiency of its supply chain, Target will begin scaling robotics solutions that have been in development and testing across the country to replenish inventory to hundreds of stores by the summer of 2020. The technology enables precise sorting on an aisle-by-aisle basis to help store team members fill shelves easier and faster while reducing backroom inventory. In 2020, Target also will open new warehouses near key markets, including New York and southern California, to more efficiently replenish stores in high-volume areas.
In 1881 New Yorker George D. Dayton opened the Dayton Dry Goods Company in Minneapolis. It expanded through the decades until it became known as Dayton Department Store. The first branch was opened in 1954.
In 1962 the company formed a discount chain named Target with a classic bullseye logo.
Dayton went public in 1967 and, powered by Target, continued expanding across the US.
In 2000 Dayton renamed itself Target Corporation.
1000 Nicollet Mall
Minneapolis, MN 55403-2542
Phone: 1 (719) 272-2600
Employer Type: Privately Owned
Analyst: Linda Meyer
Assistant: Amy Rice
Employees (This Location): 120
Employees (All Locations): 120