Coronavirus Update: Our team is here to help our clients and readers navigate these difficult times. Visit our Resources page now »

Skip to Main Content

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 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 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. 


Geographic Reach

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 nearly 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).

Financial Performance

After about a decade of pretty steady revenue growth, Target saw a 6% dip in fiscal 2016 (ended January 2017) following the sale of its pharmacy and clinics business; sales rebounded a bit in fiscal 2017 and more significantly in fiscal 2018.

In fiscal 2018 (ended January 2019) the company reported revenue of $75.4 billion, up 4% from the prior year. Same-store sales rose a solid 5% on an increase in traffic and Target opened about 20 net new stores throughout the year. 

Net income that year was flat at $2.9 billion with the increase in revenue matched by an increase in costs of sales.

Cash at the end of fiscal 2018 was $1.6 billion, a decrease from the prior year of $1.1 billion. Cash from operations contributed $6 billion to the coffers, while investing activities used $3.4 billion, mainly for capital expenditures. Financing activities used another $3.6 billion for 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. In fiscal 2018 comparable digital sales grew some 35%, its fifth straight year of 25%-plus growth. 

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 400 stores since 2017 and plans 600 more remodels by the end of 2020; it also plans to open 30 small-format stores in fiscal 2019.

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 Auden (lingerie for all ages), Smartly (cleaners and personal care), Everpsring (recycled and natural household essentials), and Original Use (male-focused urban apparel).

Company Background

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.

Tcc Cooking Co.

Minneapolis, MN 55403-2542
Phone: 1 (719) 272-2600

Firm Stats

Employer Type: Privately Owned
Analyst: Linda Meyer
Employees (This Location): 120
Employees (All Locations): 120

Major Office Locations

Minneapolis, MN