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 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 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. 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 each contribute around 20% of total revenue: beauty and household essentials (including pet supplies), food and beverage, apparel and accessories, 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), Hearth & Hand (home & lifestyle), and Room Essentials (home furnishings) 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 about 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 40 distribution centers. It generates 95% 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 (up from 6% in 2010).
After about a decade of pretty steady revenue growth, Target saw a 6% dip in fiscal 2016 (ended January) following the sale of its pharmacy and clinics business; sales rebounded a bit in fiscal 2017.
In fiscal 2017 the company reported revenue of $71.9 billion, up 3% from the prior year. Same-store sales rose more than a percent and Target opened about 20 net new stores throughout the year.
Net income that year also rose, jumping 7% to $2.9 billion, on the increased sales and a smaller provision for income taxes than in fiscal 2016.
Cash at the end of fiscal 2017 was $2.6 billion, a small increase from the prior year. Cash from operations contributed $6.9 billion to the coffers, while investing activities used $3.1 billion, mainly for capital expenditures. Financing activities used another $3.7 billion for reduction of long-term debt, dividends to stockholders, and Target's stock repurchase program.
Target, like most of its retail compatriots, is focused on digital sales and providing customers with a seamless experience whether they are shopping in stores, online, or through mobile apps. In 2017 it announced some $7 billion over three years for a host of investments, including digital enhancements. That year it integrated its Cartwheel savings app with the flagship Target app so customers would have one comprehensive mobile application. The company has also made strategic acquisitions to bolster its logistics and delivery capabilities.
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 plans to open 30 small-format stores and remodel more than 300 existing locations in fiscal 2018.
Lastly, Target's private labels are a key element of growth. The company has doubled down on that area of the business, which has historically been well-received and sets Target apart from many of its rivals. New brands launched include Heyday (electronics), Wild Fable (low-cost clothing and accessories for teenage and young adult women), and Original Use (male-focused urban apparel).
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. Also that year the retailer agreed to buy same-day delivery company Shipt in one of its largest acquisitions to date ($550 million). With Grand Junction and Shipt, Target plans to have same-day delivery as an option in most stores and in all major markets by the end of 2018.
1000 NICOLLET MALL
Minneapolis, MN 55403-2542
Phone: 1 (719) 272-2600
Employer Type: Privately Owned
Public Relations Manager: Jaa Aguilar
Marketing Director: Dora Elling
Manager: Jon-Michael Horst
Employees (This Location): 120
Employees (All Locations): 120