- Target Corporation is a major American retail corporation that operates a chain of discount department stores and hypermarkets.
- It operates a chain of over 1,900 stores across the United States.
- Its stores typically sell general merchandise—including clothing, household goods, electronics, toys, and more—as well as groceries.
Target Corporation (NYSE: TGT) is a major American retail corporation that operates a chain of discount department stores and hypermarkets. It is headquartered in Minneapolis. Target is known for its upscale, trend-forward merchandise at affordable prices. Its stores typically sell general merchandise—including clothing, household goods, electronics, toys, and more—as well as groceries.
Target Unveils 2023 Strategic Investments to Fuel Growth and a Differentiated Guest Experience
Feb 28, 2023; Target Corporation announced its plans for 2023 at the retailer's annual Financial Community Meeting in New York, emphasizing its focus on offering a differentiated guest shopping experience that will continue to position the company for long-term growth.
The company plans to invest $4 billion to $5 billion this year to expand its guest-centric services, operations network of stores and supply chain facilities, digital experiences and other capabilities. The retailer also shared more about its plans to advance its enterprise efficiency efforts, aimed at optimizing its operations after years of rapid growth.
Opening more new stores and updating existing locations
Target plans to open about 20 new stores in a variety of sizes as it seeks to reach new guests. Many of the new stores will include new design elements that reflect the local community, experiences that highlight new brands, assortment and services, and sustainable features. Target is also making investments in about 175 of its existing stores, ranging from full remodels to the addition of Ulta Beauty at Target or Apple at Target shop-in-shop experiences, or expanded capacity for same-day fulfillment services. These new and updated stores are one way Target brings new partnerships and the latest innovations in fulfillment services to guests while also investing in operational enhancements for its team.
Expanding sortation center network
The company plans to expand its sortation center network from nine to more than 15 locations by the end of 2026, which will expand its next-day delivery capabilities to guests across major U.S. markets. These specialized supply chain facilities allow Target to deliver digital orders faster, more efficiently and at a lower cost, with up to 40% of orders delivered by its last-mile delivery capability arriving next day.
Third Quarter Results
Nov 15, 2023; The Company reported third quarter GAAP and Adjusted earnings per share (EPS) of $2.10, up 36.3 percent from $1.54 in 2022. The attached tables provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures refer to diluted EPS.
Total revenue of $25.4 billion was 4.2 percent lower than last year, reflecting a total sales decline of 4.3 percent and a 0.6 percent decrease in other revenue. Third quarter operating income of $1.3 billion was 28.9 percent higher than last year, driven by a higher gross margin rate.
Third quarter operating income margin rate was 5.2 percent in 2023, compared with 3.9 percent in 2022. Third quarter gross margin rate was 27.4 percent, compared with 24.7 percent in 2022, reflecting lower markdowns and other inventory-related costs, lower freight costs, lower supply chain and digital fulfillment costs, and favorable category mix. These benefits were partially offset by higher inventory shrink. Third quarter SG&A expense rate was 20.9 percent in 2023, compared with 19.7 percent in 2022, reflecting the de-leveraging impact of lower sales combined with higher costs, including continued investments in pay and benefits and inflationary pressures throughout its business, partially offset by disciplined cost management.
The Company's third quarter 2023 net interest expense was $107 million, compared with $125 million last year, reflecting an increase in interest income, partially offset by higher debt levels and the impact of higher floating interest rates on interest rate swaps. Third quarter 2023 effective income tax rate was 21.3 percent, in line with the prior year rate of 21.6 percent.
The Company paid dividends of $507 million in the third quarter, compared with $497 million last year, reflecting a 1.9 percent increase in the dividend per share.
Target Corporation is a major American retail corporation that operates a chain of discount department stores and hypermarkets. It is headquartered in Minneapolis. Target is known for its upscale, trend-forward merchandise at affordable prices. Its stores typically sell general merchandise—including clothing, household goods, electronics, toys, and more—as well as groceries.
The majority of its stores offer a wide assortment of general merchandise and food. Nearly all of its stores larger than 170,000 square feet offer a variety of general merchandise and a full line of food items comparable to traditional supermarkets. The company's digital channels include a wide merchandise and food assortment, including many items found in its stores, along with a complementary assortment sold by Target and third parties. The company manage its business across the five core merchandise categories shown below. Within categories, gross margins vary depending on the type of merchandise.
A significant portion of its sales is from national brand merchandise. Approximately one-third of its sales come from its owned and exclusive brands.
|A New Day||Goodfellow & Co||Room Essentials|
|All in Motion||Hearth & Hand with Magnolia||Shade & Shore|
|Auden||Hyde & EEK! Boutique||Smith & Hawken|
|Ava & Viv||JoyLab||Sonia Kashuk|
|Boots & Barkley||Kindfull||Spritz|
|Brightroom||Knox Rose||Stars Above|
|Bullseye's Playground||Kona Sol||Sun Squad|
|Casaluna||Made By Design||Threshold|
|Cat & Jack||Market Pantry||Universal Thread|
|Cloud Island||Mondo Llama||up & up|
|Colsie||More Than Magic||Wild Fable|
|Favorite Day||Original Use|
|Good & Gather||Project 62|
|Exclusive Adult Beverage Brands|
|California Roots||Jingle & Mingle||SunPop|
|Casa Cantina||Photograph||The Collection|
|Headliner||Rosé Bae||Wine Cube|
The company also sell merchandise through periodic exclusive design and creative partnerships, and shop-in-shop experiences, with partners such as Apple, Disney, Levi's, and Ulta Beauty, and generate revenue from in-store amenities such as Starbucks, Target Café, and Target Optical. CVS Pharmacy, Inc. (CVS) operates pharmacies and clinics in its stores under a perpetual operating agreement from which the company generate annual occupancy income.
Stores as of January 28, 2023
Retail Square Feet
Stores as of January 28, 2023
Retail Square Feet
|District of Columbia||5||342||North Dakota||4||554|
|Stores and Supply Chain Facilities as of January 28, 2023||Stores|
Supply Chain Facilities
|Owned buildings on leased land||157||—|
The future Target Corporation was founded by George Draper Dayton. In 1902.
Daytons plan discount store chain.
|1962||Creation of Iconic Name and Logo.|
|1962||The Birth of Target - The first four Target stores opened in Minnesota.|
Dayton Corporation Goes Public
After a decade of significant growth, Dayton's transformed itself from a regional department store company to a national retailer. The company's Initial Public Offering (IPO) was Oct. 18, 1967, with 450,000 common stocks at $34/share.
Target's First Distribution Center - Target opened its first distribution center in Fridley, Minnesota — the first of dozens to come.
Merger: Dayton-Hudson Corporation
The Dayton Corporation joined forces with the J.L. Hudson Company of Detroit to create the Dayton Hudson Corporation. The merger established the corporation as one of the 15 largest non-food retailers in the nation.
Target HQ Moved to IDS Building
The new IDS Building in downtown Minneapolis was designed by renowned architect Philip Johnson and remains the tallest building in Minnesota.
First Stores Network Intranet
The new system linked all of Target's locations together in a communications network through the use of computers.
Target's First Owned Brand
Target carried store-branded "private label" products starting in the early 1960s, but in 1984 introduced its first official owned brand, Honors — a casual, color-coordinated line of clothing for men, women and children.
First Email System at Target
Message Switch, Target's first email system, rolled out company-wide. It was replaced by T-Mail in 1991.
Acquisition: Marshall Field's
Target's parent company, Dayton Hudson Corp., purchased legendary Chicago-based department store Marshall Field's, making Dayton Hudson the largest department store chain in the Midwest.
Opening of Target Plaza Headquarters Building
Target added to the Minneapolis skyline with the opening of the Target Plaza North building.
Target Plaza Headquarters Lights Display
Target lights up the Minneapolis skyline
Target created innovative pharmacy concept ClearRx
Target opened its first stores outside the continental U.S. in Anchorage and Wasilla, Alaska, with store design and merchandise catering specifically to the Alaskan market.
CVS Acquired Target Pharmacy Business
Branded as CVS Pharmacy, CVS Health began operating Target pharmacies across 47 states through a store-within-a-store format.
Acquisition: Transportation Technology Company Grand Junction
The acquisition accelerated Target's work to improve delivery speed and boost its ability to offer new services like same-day delivery.
Target announced its acquisition of Shipt, with plans to bring same-day delivery service to stores across the country.
Introducing: Drive Up with Starbucks
In response to guest requests, Target debuted the ability to add a Starbucks Café order to be delivered with a Drive Up order at select stores.
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