Wiki source code of Target Corporation

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1 {{box cssClass="floatinginfobox" title="**Contents**"}}
2 {{toc/}}
3 {{/box}}
4
5 = Summary =
6
7 * Target Corporation is a major American retail corporation that operates a chain of discount department stores and hypermarkets.
8 * It operates a chain of over 1,900 stores across the United States.
9 * Its stores typically sell general merchandise—including clothing, household goods, electronics, toys, and more—as well as groceries.
10
11
12
13 [[image:TGT0.png||height="260" width="718"]]
14
15
16 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.
17
18
19 = Recent Developments =
20
21 **Target Unveils 2023 Strategic Investments to Fuel Growth and a Differentiated Guest Experience**{{footnote}}https://corporate.target.com/press/release/2023/02/target-unveils-2023-strategic-investments-to-fuel{{/footnote}}
22
23 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.
24
25
26 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.
27
28
29 **Opening more new stores and updating existing locations**
30
31 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.
32
33
34 **Expanding sortation center network**
35
36 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.
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38
39
40 [[image:TGT1.jpg]]
41
42
43 = Financial Highlights =
44
45 **Third Quarter Results**{{footnote}}https://corporate.target.com/press/release/2023/11/target-corporation-reports-third-quarter-earnings{{/footnote}}
46
47 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.
48
49
50 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.
51
52
53 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.
54
55
56 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.
57
58
59 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.
60
61
62
63 [[image:TGT2.png]]
64
65
66 = Company Overview =
67
68 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.
69
70
71 == Merchandise ==
72
73 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.{{footnote}}https://fintel.io/doc/sec-target-corp-27419-10k-2023-march-08-19424-4599{{/footnote}}
74
75
76
77 [[image:TGT3.png]]
78
79
80 == Brand ==
81
82 A significant portion of its sales is from national brand merchandise. Approximately one-third of its sales come from its owned and exclusive brands.
83
84
85 (% style="width:660px" %)
86 |(% style="width:246px" %)**Owned Brands**|(% style="width:230px" %) |(% style="width:181px" %)
87 |(% style="width:246px" %)A New Day|(% style="width:230px" %)Goodfellow & Co|(% style="width:181px" %)Room Essentials
88 |(% style="width:246px" %)All in Motion|(% style="width:230px" %)Hearth & Hand with Magnolia|(% style="width:181px" %)Shade & Shore
89 |(% style="width:246px" %)Art Class|(% style="width:230px" %)Heyday|(% style="width:181px" %)Smartly
90 |(% style="width:246px" %)Auden|(% style="width:230px" %)Hyde & EEK! Boutique|(% style="width:181px" %)Smith & Hawken
91 |(% style="width:246px" %)Ava & Viv|(% style="width:230px" %)JoyLab|(% style="width:181px" %)Sonia Kashuk
92 |(% style="width:246px" %)Boots & Barkley|(% style="width:230px" %)Kindfull|(% style="width:181px" %)Spritz
93 |(% style="width:246px" %)Brightroom|(% style="width:230px" %)Knox Rose|(% style="width:181px" %)Stars Above
94 |(% style="width:246px" %)Bullseye's Playground|(% style="width:230px" %)Kona Sol|(% style="width:181px" %)Sun Squad
95 |(% style="width:246px" %)Casaluna|(% style="width:230px" %)Made By Design|(% style="width:181px" %)Threshold
96 |(% style="width:246px" %)Cat & Jack|(% style="width:230px" %)Market Pantry|(% style="width:181px" %)Universal Thread
97 |(% style="width:246px" %)Cloud Island|(% style="width:230px" %)Mondo Llama|(% style="width:181px" %)up & up
98 |(% style="width:246px" %)Colsie|(% style="width:230px" %)More Than Magic|(% style="width:181px" %)Wild Fable
99 |(% style="width:246px" %)Embark|(% style="width:230px" %)Opalhouse|(% style="width:181px" %)Wondershop
100 |(% style="width:246px" %)Everspring|(% style="width:230px" %)Open Story|(% style="width:181px" %)Xhilaration
101 |(% style="width:246px" %)Favorite Day|(% style="width:230px" %)Original Use|(% style="width:181px" %)
102 |(% style="width:246px" %)Future Collective|(% style="width:230px" %)Pillowfort|(% style="width:181px" %)
103 |(% style="width:246px" %)Good & Gather|(% style="width:230px" %)Project 62|(% style="width:181px" %)
104 |(% style="width:246px" %) |(% style="width:230px" %) |(% style="width:181px" %)
105 |(% style="width:246px" %)**Exclusive Adult Beverage Brands**|(% style="width:230px" %) |(% style="width:181px" %)
106 |(% style="width:246px" %)California Roots|(% style="width:230px" %)Jingle & Mingle|(% style="width:181px" %)SunPop
107 |(% style="width:246px" %)Casa Cantina|(% style="width:230px" %)Photograph|(% style="width:181px" %)The Collection
108 |(% style="width:246px" %)Headliner|(% style="width:230px" %)Rosé Bae|(% style="width:181px" %)Wine Cube
109
110
111 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.
112
113
114 == Stores ==
115
116
117 (% style="width:1028px" %)
118 |(% style="width:224px" %)(((
119 **Stores as of January 28, 2023            **
120 )))|(% style="width:134px" %)** Stores**|(% style="width:149px" %)(((
121 **Retail Square Feet**
122
123 **(in thousands)**
124 )))|(% style="width:79px" %) |(% style="width:173px" %)(((
125 **Stores as of January 28, 2023              **
126 )))|(% style="width:115px" %)**Stores**|(% style="width:151px" %)(((
127 **Retail Square Feet**
128
129 **(in thousands)**
130 )))
131 |(% style="width:224px" %)Alabama|(% style="width:134px" %)22|(% style="width:149px" %)3,132|(% style="width:79px" %) |(% style="width:173px" %)Montana|(% style="width:115px" %)7|(% style="width:151px" %)777
132 |(% style="width:224px" %)Alaska|(% style="width:134px" %)3|(% style="width:149px" %)504|(% style="width:79px" %) |(% style="width:173px" %)Nebraska|(% style="width:115px" %)14|(% style="width:151px" %)2,005
133 |(% style="width:224px" %)Arizona|(% style="width:134px" %)46|(% style="width:149px" %)6,081|(% style="width:79px" %) |(% style="width:173px" %)Nevada|(% style="width:115px" %)18|(% style="width:151px" %)2,262
134 |(% style="width:224px" %)Arkansas|(% style="width:134px" %)9|(% style="width:149px" %)1,165|(% style="width:79px" %) |(% style="width:173px" %)New Hampshire|(% style="width:115px" %)10|(% style="width:151px" %)1,236
135 |(% style="width:224px" %)California|(% style="width:134px" %)314|(% style="width:149px" %)37,304|(% style="width:79px" %) |(% style="width:173px" %)New Jersey|(% style="width:115px" %)49|(% style="width:151px" %)6,189
136 |(% style="width:224px" %)Colorado|(% style="width:134px" %)45|(% style="width:149px" %)6,361|(% style="width:79px" %) |(% style="width:173px" %)New Mexico|(% style="width:115px" %)10|(% style="width:151px" %)1,185
137 |(% style="width:224px" %)Connecticut|(% style="width:134px" %)21|(% style="width:149px" %)2,732|(% style="width:79px" %) |(% style="width:173px" %)New York|(% style="width:115px" %)100|(% style="width:151px" %)10,820
138 |(% style="width:224px" %)Delaware|(% style="width:134px" %)4|(% style="width:149px" %)551|(% style="width:79px" %) |(% style="width:173px" %)North Carolina|(% style="width:115px" %)52|(% style="width:151px" %)6,653
139 |(% style="width:224px" %)District of Columbia|(% style="width:134px" %)5|(% style="width:149px" %)342|(% style="width:79px" %) |(% style="width:173px" %)North Dakota|(% style="width:115px" %)4|(% style="width:151px" %)554
140 |(% style="width:224px" %)Florida|(% style="width:134px" %)127|(% style="width:149px" %)17,225|(% style="width:79px" %) |(% style="width:173px" %)Ohio|(% style="width:115px" %)65|(% style="width:151px" %)7,863
141 |(% style="width:224px" %)Georgia|(% style="width:134px" %)51|(% style="width:149px" %)6,826|(% style="width:79px" %) |(% style="width:173px" %)Oklahoma|(% style="width:115px" %)15|(% style="width:151px" %)2,167
142 |(% style="width:224px" %)Hawaii|(% style="width:134px" %)8|(% style="width:149px" %)1,234|(% style="width:79px" %) |(% style="width:173px" %)Oregon|(% style="width:115px" %)22|(% style="width:151px" %)2,353
143 |(% style="width:224px" %)Idaho|(% style="width:134px" %)7|(% style="width:149px" %)725|(% style="width:79px" %) |(% style="width:173px" %)Pennsylvania|(% style="width:115px" %)78|(% style="width:151px" %)9,260
144 |(% style="width:224px" %)Illinois|(% style="width:134px" %)100|(% style="width:149px" %)12,171|(% style="width:79px" %) |(% style="width:173px" %)Rhode Island|(% style="width:115px" %)4|(% style="width:151px" %)517
145 |(% style="width:224px" %)Indiana|(% style="width:134px" %)32|(% style="width:149px" %)4,186|(% style="width:79px" %) |(% style="width:173px" %)South Carolina|(% style="width:115px" %)20|(% style="width:151px" %)2,389
146 |(% style="width:224px" %)Iowa|(% style="width:134px" %)21|(% style="width:149px" %)2,859|(% style="width:79px" %) |(% style="width:173px" %)South Dakota|(% style="width:115px" %)5|(% style="width:151px" %)580
147 |(% style="width:224px" %)Kansas|(% style="width:134px" %)17|(% style="width:149px" %)2,385|(% style="width:79px" %) |(% style="width:173px" %)Tennessee|(% style="width:115px" %)30|(% style="width:151px" %)3,815
148 |(% style="width:224px" %)Kentucky|(% style="width:134px" %)14|(% style="width:149px" %)1,575|(% style="width:79px" %) |(% style="width:173px" %)Texas|(% style="width:115px" %)154|(% style="width:151px" %)21,176
149 |(% style="width:224px" %)Louisiana|(% style="width:134px" %)16|(% style="width:149px" %)2,195|(% style="width:79px" %) |(% style="width:173px" %)Utah|(% style="width:115px" %)15|(% style="width:151px" %)1,981
150 |(% style="width:224px" %)Maine|(% style="width:134px" %)6|(% style="width:149px" %)741|(% style="width:79px" %) |(% style="width:173px" %)Vermont|(% style="width:115px" %)1|(% style="width:151px" %)60
151 |(% style="width:224px" %)Maryland|(% style="width:134px" %)41|(% style="width:149px" %)5,070|(% style="width:79px" %) |(% style="width:173px" %)Virginia|(% style="width:115px" %)61|(% style="width:151px" %)7,789
152 |(% style="width:224px" %)Massachusetts|(% style="width:134px" %)50|(% style="width:149px" %)5,546|(% style="width:79px" %) |(% style="width:173px" %)Washington|(% style="width:115px" %)40|(% style="width:151px" %)4,424
153 |(% style="width:224px" %)Michigan|(% style="width:134px" %)54|(% style="width:149px" %)6,300|(% style="width:79px" %) |(% style="width:173px" %)West Virginia|(% style="width:115px" %)6|(% style="width:151px" %)755
154 |(% style="width:224px" %)Minnesota|(% style="width:134px" %)73|(% style="width:149px" %)10,332|(% style="width:79px" %) |(% style="width:173px" %)Wisconsin|(% style="width:115px" %)38|(% style="width:151px" %)4,614
155 |(% style="width:224px" %)Mississippi|(% style="width:134px" %)6|(% style="width:149px" %)743|(% style="width:79px" %) |(% style="width:173px" %)Wyoming|(% style="width:115px" %)3|(% style="width:151px" %)257
156 |(% style="width:224px" %)Missouri|(% style="width:134px" %)35|(% style="width:149px" %)4,618|(% style="width:79px" %) |(% style="width:173px" %) |(% style="width:115px" %) |(% style="width:151px" %)
157 |(% style="width:224px" %) |(% style="width:134px" %) |(% style="width:149px" %) |(% style="width:79px" %) |(% style="width:173px" %)**Total**|(% style="width:115px" %)**1,948**|(% style="width:151px" %)**244,584**
158 |(% style="width:224px" %) |(% style="width:134px" %) |(% style="width:149px" %) |(% style="width:79px" %) |(% style="width:173px" %) |(% style="width:115px" %) |(% style="width:151px" %)
159 |(% style="width:224px" %)**Stores and Supply Chain Facilities as of January 28, 2023**|(% style="width:134px" %)**Stores**|(% style="width:149px" %)(((
160 **Supply Chain Facilities**
161 )))|(% style="width:79px" %) |(% style="width:173px" %) |(% style="width:115px" %) |(% style="width:151px" %)
162 |(% style="width:224px" %)Owned|(% style="width:134px" %)1,530|(% style="width:149px" %)37|(% style="width:79px" %) |(% style="width:173px" %) |(% style="width:115px" %) |(% style="width:151px" %)
163 |(% style="width:224px" %)Leased|(% style="width:134px" %)261|(% style="width:149px" %)18|(% style="width:79px" %) |(% style="width:173px" %) |(% style="width:115px" %) |(% style="width:151px" %)
164 |(% style="width:224px" %)Owned buildings on leased land|(% style="width:134px" %)157|(% style="width:149px" %)—|(% style="width:79px" %) |(% style="width:173px" %) |(% style="width:115px" %) |(% style="width:151px" %)
165 |(% style="width:224px" %)**Total**|(% style="width:134px" %)**1,948**|(% style="width:149px" %)**55**|(% style="width:79px" %) |(% style="width:173px" %) |(% style="width:115px" %) |(% style="width:151px" %)
166
167
168 == Company History ==
169
170 The future Target Corporation was founded by George Draper Dayton. In 1902.{{footnote}}https://corporate.target.com/about/purpose-history/history-timeline?era=1{{/footnote}}
171
172
173 |**Year**|**Milestone**
174 |1960|(((
175 Daytons plan discount store chain.
176 )))
177 |1962|Creation of Iconic Name and Logo.
178 |1962|The Birth of Target - The first four Target stores opened in Minnesota.
179 |1967|(((
180 Dayton Corporation Goes Public
181
182 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.
183 )))
184 |1969|(((
185 Target's First Distribution Center - Target opened its first distribution center in Fridley, Minnesota — the first of dozens to come.
186 )))
187 |1969|(((
188 Merger: Dayton-Hudson Corporation
189
190 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.
191 )))
192 |1972|(((
193 Target HQ Moved to IDS Building
194
195 The new IDS Building in downtown Minneapolis was designed by renowned architect Philip Johnson and remains the tallest building in Minnesota.
196 )))
197 |1983|(((
198 First Stores Network Intranet
199
200 The new system linked all of Target's locations together in a communications network through the use of computers.
201 )))
202 |1984|(((
203 Target's First Owned Brand
204
205 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.
206 )))
207 |1986|(((
208 First Email System at Target
209
210 Message Switch, Target's first email system, rolled out company-wide. It was replaced by T-Mail in 1991.
211 )))
212 |1990|(((
213 Acquisition: Marshall Field's
214
215 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.
216 )))
217 |1998|(((
218 Opening of Target Plaza Headquarters Building
219
220 Target added to the Minneapolis skyline with the opening of the Target Plaza North building.
221 )))
222 |2001|(((
223 Target Plaza Headquarters Lights Display
224
225 Target lights up the Minneapolis skyline
226 )))
227 |2005|(((
228 Introducing: ClearRx
229
230 Target created innovative pharmacy concept ClearRx
231 )))
232 |2008|(((
233 Expansion: Alaska
234
235 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.
236 )))
237 |2015|(((
238 CVS Acquired Target Pharmacy Business
239
240 Branded as CVS Pharmacy, CVS Health began operating Target pharmacies across 47 states through a store-within-a-store format.
241 )))
242 |2017|(((
243 Acquisition: Transportation Technology Company Grand Junction
244
245 The acquisition accelerated Target's work to improve delivery speed and boost its ability to offer new services like same-day delivery.
246 )))
247 |2017|(((
248 Acquisition: Shipt
249
250 Target announced its acquisition of Shipt, with plans to bring same-day delivery service to stores across the country.
251 )))
252 |2022|(((
253 Introducing: Drive Up with Starbucks
254
255 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.
256 )))
257
258
259
260 = References =
261
262 {{putFootnotes/}}
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