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The last decade has made people’s lives rather busy. An essential task like grocery shopping means you have to take time out from your schedule, which is often tricky. This time shortage and the need to buy everything in one place have led to the creation of multi-product department stores.
Target is a department store that provides all daily needs at one location. They are the seventh largest retailer in the USA. It has more than 1900 stores in the US itself and is pretty well known. Though operating several format stores, the company plans to keep expanding. Here is how they achieved success and how they plan to continue excelling.
Target - Company Highlights
- Company Name-Target Corporation
- Headquarter-Minneapolis, Minnesota
- Sector-Retail
- Founders-George Dayton
- Founded -June 24th, 1902 as a corporation
- Parent Organization-Dayton Corporation (1962-69), Dayton Hudson Corporation (1969-2000)
- Revenue-$26.12 Billion (2022)
- Market Cap-$71.19 Billion (2023)
- Website-www.target.com
Target - About
- Target Corporation, also known as Target, is an American department store chain. It was set up in 1962 as a division of Dayton’s department store. The company ranks 37 on the 2020 Fortune 500’s list of top US companies.
- Target corporation runs several versions of its department store. These comprise the discount store Target, City Target, Target Express, and hypermarket Super Target. The company provides all daily-use items in one place, which has helped build its customer base.
Target - Industry
- Target operates in the retail industry, which is pretty competitive. The total retail sales of the USA amount to 4.86 trillion US dollars in 2022. This was a massive increase from the 53 billion earned in 2021. There are nearly 4 million retail stores in the USA.
- Since the industry has many players earning enough to be profitable is challenging. At present, Walmart is a leader in this industry. The retail sector contributes 6% to the GDP of the country.
Target - Founders and Team
George Dayton is considered to be the founder of Target corporation. He founded the first Target discount store in 1962.
George Dayton
- George Dayton was born in New York but migrated to Minnesota. In 1902 he purchased Goodfellow and Co and renamed and started it as Dayton Dry Goods store. This was again renamed Dayton company in 2011.
Target - Startup Story
- In 1893 the Westminster Presbyterian Church needed some sort of earning to set up their new building. In order to cover that cost, George Dayton bought their corner section and built a six-story building on it. Later, he also purchased the Goodfellow Dry Goods store and set it up there.
- The shop was set up in 1902, and expansion followed. Very soon, they had several branches of the same store. By the 1920s, the company had become a multi-million dollar business. Since Dayton was a banker, he knew just how to go about successfully running a business.
- In 1938 George passed away, and the business came to his son Nelson Dayton. He grew the company from $14 million to $50 million. Post Nelson’s death in 1950, the business moved to five Dayton cousins who started changing the policies of operation.
- With much deliberation, the cousins decided to open a discount store offering everything under one roof. Target’s first store was launched in 1962, and it became quite popular due to its concept.
Target - Mission and Vision
- Target's vision statement is as follows:
- “To make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation, and exceptional guest experience by consistently fulfilling our Expect More. Pay Less. Brand Promise.”
- Their mission statement focuses on giving people a convenient and happy life. It is as mentioned below:
- “To help all families discover the joy of everyday life..”
Target - Name, Tagline, and Logo
- Target has been using the same tagline since 1994. It focuses on their aim to offer more for less amount.
- “Expect more. Pay less.”
- Target Logo was a bullseye as that is what they wanted to promote for their brand. They had everything for their customers. The first logo was a typical red bull’s eye with the target name written in the center. However, this was changed in 1968, and the new version was much easy to look at.
- This logo used an italic, Sans serif, and all capital typeface. The logo continued till 1974 when the font was again changed. Now the letters were bolder and straighter. With the large lettering, it was easy to see the brand name.
- In 2004 again, the logo was changed, and the brand name was shifted below the bull’s eye. The color used was red, which was the same for both logo and text. In 2018 the uppercase letters were replaced with lowercase letters to get the friendly vibe of the brand.
How to Choose a Perfect Logo for Your Startup?
- A logo is one of the most essential things for a company. It helps your customers to identify you. Check out this article to know how to choose a perfect logo for your startup.
Target - Business Model
- Target corporation decided to differentiate itself from its other brands. They decided to create their own private-label brands to get more sales. In fact, these brands contribute almost one-third of the company's total revenue.
- Target owns 41 brands, and though the company deals in other brands, too these remain the main focus. The company either produces these items in its facilities or asks manufacturers to make them following specific guidelines.
- This approach has helped Target differentiate the product line and drive more business. The company does not offer membership plans to get customers. Instead, its low prices and use of branded debit and credit cards are what drive the revenue for the company.
Target - Revenue Model
- Though Target’s reach is limited to the US, only its self-created brands ensure it gets a fair revenue share cut of the market. Target’s revenue for the last quarter of 2022 was $26.518 Billion. The figures show a hike of 3.38% compared to the previous year’s same-time period figures. The yearlong revenue for the company was $108.72 Billion. This was an increase of 5.2% over last year.
- The graph shows the sales growth of Target in the United States from 2016-2021 in the percentage of year-over-year sales.
- The graph shows the sales growth of Target in the United States from 2016-2021 in the percentage of year-over-year sales.
Target - Employees
- Target’s employee policies aim at the holistic development and growth of its employees. They aim at providing financial security and upliftment of mental and physical health. Some of the benefits are Denatla and health insurance, Disability insurance, paid national holidays, a 10% member discount on any product, a tobacco cessation program, and many other facilities.
Target - Challenges Faced
- Target faced data breaches a couple of times in the past. That really diluted the integrity of the company. Since the company also deals in credit and debit services, the impact was quite damaging. Stopping such data breaches is critical to ensure reputation remains intact.
- Apart from that, Target is focused only on North America. It does not have any stores abroad. Therefore it is important to maintain their position in the market else the overall revenue will start dipping.
- Target has been late in using online shopping to increase sales. Retailers like Amazon claim a huge chunk of this market, and Target has relatively less exposure. The company also faces challenges from other small stores which offer better rates for similar products.
Target - Growth
- As per the data shared by csimarket, the wholesale industry grew at 9.36%, while the retail sector was at 9.71%. However, Target was able to show a 3.38% growth, thus underperforming by industry standards. During this time, 15 other competitors were able to achieve higher revenue growth.
Target - Advertisements and Social Media Campaigns
- Target publishes its flyers where they share the weekly deals for each store. Apart from that, their latest commercial focuses on creating Holiday cheer. They have added a number of commercials, each emphasizing the importance of celebrating the festival with your family. The commercials showcase Target as the one place to buy all your holiday items and gifts
Target - Awards and Achievements
- Some awards that Target corporation has received over the years are:
- In 2016 and 2011 became one of the most ethical companies in the world
- Target-sponsored ISS cotton sustainability challenge received a mention in Fast Company’s 2019 World Changing Ideas Awards.
- In 2007 Target won KPMG Award for Distinguished Service to the Washington Theatre Community.
- In the annual SAP Retail Innovation and Impact Awards 2010, Target received the Best In class innovation award.
Target - Competitors
Target corporation, at present, is number 7 in US retail markets. Some of its competitors include:
- Marshalls
- Best Buy
- Walmart
- Kroger
- Amazon
- Dollar General
- Game Stop
- Costco
- Dollar Tree
- Sams Club
Target - Future Plans
- Target Corporation has its vision quite cut out. By 2030 the company aims to be the market leader in creating sustainable brands. Last year they launched Target Zero, which is an initiative to help customers find products quickly, thus minimizing waste.
- In the next three years, the company wants all its brands to be fully sustainable and eco-friendly. The company is also working towards gender equity and hopes that by 2025 all its brands will achieve the same.
- Target is also aiming at reducing its carbon footprint. By 2040 they aim to reduce greenhouse gas emissions ultimately.
Conclusion
- Target Corporation is an American department store with its headquarters placed in Minneapolis, Minnesota. It was incorporated in 1962 as a division of Dayton's department store.
- Currently, Target has 1948 stores and is counted as the seventh-largest retailer in the United States with Amazon and Walmart being its toughest Competitors.
FAQs
Who is the founder of Target?
- George Dayton is the founder of Target corporation.
Who is the current CEO of Target?
- Brian Cornell is an American businessman and the present CEO of Target corporation.
Which are the types of stores that Target has?
- Target has opened different types of retail stores like discount store Target, City Target, Target Express, and hypermarket Super Target.
Which industry does Target operate in?
- Target operates in the Retail industry.
