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Target and Facebook have paired up again, this time for an engaging new choose-your-own-offer savings experience called Cartwheel. It's a first-of-its-kind program that gives guests a new way to save on hundreds of items throughout Target stores.

Cartwheel quietly launched on May 8 and will officially launch shortly thereafter, starting with a select group of REDcard holders. Target is launching Cartwheel in "beta," which means it is still a work in progress. This multichannel program will be continuously refined and improved with the help of guest feedback.

So how does Cartwheel work? Cartwheel lets guests choose their own offers and also lets Facebook friends share offers with each other.

A few more things you should know:
* You can access Cartwheel at cartwheel.target.com on your computer, tablet or mobile device.
* You get 10 spots automatically just for logging in for the first time. From there, you can earn Cartwheel
achievement badges through activity-choosing, redeeming and sharing offers-that will open up more offer spots.
* Offers are redeemed in-store through a single barcode in the Cartwheel app and may be used multiple times. You can also print the barcode from your computer.
* Present the barcode to the cashier at checkout (either a printout or on your mobile device) just as you would any other coupon. The cashier will scan the barcode and you will save on all the Cartwheel offers in your cart.
* Savings will vary, with most discounts between 5 and 25 percent.

"We know our guests love a great value, and Cartwheel offers another fun and easy way to save money at Target," says Casey Carl, Target's president of multichannel. "Cartwheel bridges the in-store experience with social technology to help our guests discover and share personalized deals and inspiration with their friends."

Learn more about all the ways we're tailoring our shopping experience to better serve our guests.

Don't miss out on the latest Target news and behind-the-scenes happenings! Subscribe to our bi weekly newsletter and get the top stories from A Bullseye View delivered straight to your inbox!

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introducing Cartwheel: a first-of-its-kind savings program

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Target and Facebook have paired up again, this time for an engaging new choose-your-own-offer savings experience called Cartwheel. It's a first-of-its-kind program that gives guests a new way to save on hundreds of items throughout Target stores. Cartwheel quietly launched on May 8 and will officially launch shortly thereafter, starting with a select group of REDcard holders.

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Target Corporation | American corporation

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Target Corporation: Target Corporation, American mass-market retail company operating large-scale food and general-merchandise discount stores. It is one of the largest discount retailers in the United States, and its red bull's-eye logo is familiar throughout the country. Corporate headquarters are in Minneapolis,

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Fortune 500 rank: 33 (Previous rank: 29)
2006 Revenues (millions): $59,490
Headquarters: Minneapolis, MN
Get quote: TGT

The discount retailer saw earnings per share increase 18.5% to $3.21, owing largely to new stores that opened in 2006, as well as the company's cash-producing credit card business. Its same store sales growth of 4.8% outpaced Wal-Mart's 2.1% rate. Revenues are up 13% over last year.

See more Fortune 500 data for Target

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Fortune 500 rank: 33 (Previous rank: 29) 2006 Revenues (millions): $59,490 Headquarters: Minneapolis, MN Get quote: TGT The discount retailer saw earnings per share increase 18.5% to $3.21, owing largely to new stores that opened in 2006, as well as the company's cash-producing credit card business.

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The 10 biggest retailers in the Fortune 500

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Many retailers, like Sears and J.C. Penney, slid down further. Discounters, like Dollar General, again took market share.

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With roughly 1800 stores across the country, Target has leveraged its reputation as a slightly more upscale Walmart to become the second-largest retailer in North America. The company promises "clean, spacious" shopping areas and relies on a familiar red coloring scheme to make it stand out from a surplus of discount stores. Read up on Target's ability to predict pregnancies, the lunacy of refrigerating Doritos, and the logic behind those concrete red balls.

1. Target started with a church fire.

At the turn of the century, real estate developer George Dayton pulled opportunity out of still-simmering embers when he bought a stretch of property in Minneapolis, Minnesota that had previously been home to the Westminster Presbyterian Church. When the church burned down in 1895, Dayton was able to use the grounds to build a six-story commercial building. Feeling it needed a primary store, Dayton convinced Goodfellows Dry Goods to relocate there. That burgeoning retail business led the family to start the Target discount franchise in 1961.

2. "Tarjay" was a thing all the way back in the 1960s.

Pronouncing Target as though it were a French boutique is older than you think. Douglas Dayton, who inherited the Dayton business along with his brothers, recalled that people were making that joke from the time the first Minneapolis location opened in 1962.

3. Shoppers were evacuated from one Target store due to an X-rated emergency.

A San Luis Obispo store had to clear itself of customers and staff in July 2015 after a hooligan managed to hijack their public announcement system and pipe pornographic noises over the speakers. The SLO Tribune reported that management was able to turn off the soundtrack following the evacuation. The pranksters struck a second time at a San Jose location that October during Mommy and Me Day.

4. Those big red balls outside Target stores are for your safety.

Plopped unceremoniously in front of many Target locations are giant concrete balls called bollards. While they do complement the store's red aesthetic, they also serve a functional purpose: to keep cars from driving into the door.

Inspired by the bollards, one married couple took to Instagram and Facebook to post photos of themselves interacting with them for 365 days straight. (Don't have too much fun with them, though, When the company put a decorative beach-ball colored fabric over the balls in 2007, people complained that children might kick them and break their feet.)

5. Target knows if you're pregnant (Even if your family doesn't).

A company employee tipped off The New York Times Magazine in 2012 that data analytics obtained from shopping could be sorted to assess whether a shopper is pregnant. Using a record of transactions, things endemic to second-trimester shopping (unscented lotions, supplements like calcium and zinc) were identified. The company could even make a reasonable estimate of when a customer was due and send them coupons tailored for their needs. Creepy? Yes, especially when the father of a teenager called a Minneapolis store to complain his daughter was getting baby-related coupons. Turns out he didn't know she was pregnant.

6. Target will let customers breastfeed anywhere in the store.

If you're nipple-averse, you might want to reconsider a Target trip. In 2015, the company announced a policy that allows for mothers to fuel their babies anywhere they please on the premises. Housewares, electronics, sporting goods, stationery-no department is exempt. The policy was publicized after one mother was erroneously told to cover up in Texas and stores experienced organized "nurse-ins" in protest.

7. Target likes to refrigerate Doritos.

In 2014, people took to the Internet to voice their confusion over Target stores that were keeping bags of Doritos in their coolers. Was there some new, as-yet-undiscovered way to appreciate the tasty tortilla chip? Had Doritos been perishable all this time? The truth was somewhat less sensational, albeit substantially more disgusting. Turns out they were trying to promote a recipe for "walking tacos" that called for refrigerated items like shredded cheese, ground beef and sour cream to get mixed inside a bag of Doritos.

8. Target once opened 11 stores in one city in one day.

In a bold move not even Starbucks has attempted, Target opened 11 stores in Chicago on the same day in March of 1993. The aggressive launch may have been intended to declare retail war on competitors Walmart and Kmart: Chicago was the first time all three were going up against one another in a major market.

9. Target pharmacies are owned by CVS.

Target was once responsible for doling out their own prescriptions, but no more. In June 2015, the company announced that CVS Pharmacy would be buying their medication dispensaries for close to $2 billion and the locations would be re-branded as CVS fixtures. Why sell? The company needed some cash after their Canadian expansion plans fell flat.

10. Target helped repair the Washington Monument.

In 1997, the company put up $1 million and pledged additional assistance to the National Park Service to repair a dilapidated Washington Monument. While companies often make expensive gestures, Target went one better and helped enlist Michael Graves to help brainstorm ideas to reinforce the structure during the restoration work. Graves later become the company's first "name" designer to debut a line of branded products.

11. "Alex from Target" got death threats.

Back in November 2014, a photo of Alex Lee-a handsome, 16-year-old Frisco, Texas Target employee-went viral, and dreamy Alex soon became an Internet meme of considerable proportions. He went from 100 Twitter followers to 100,000 almost overnight and modeling offers soon followed. But not everyone was taken with his celebrity. Alex told The New York Times he got some threats of violence and saw his family's social security numbers posted online. Alex eventually left Target to pursue other ventures, like touring with other viral personalities.

12. Target's offering of "manatee gray" as a plus-sized color was a mistake.

A Target.com shopper was taken aback when she spotted a size selection option for a Mossimo kimono dress in 2013. All of the sizes were labeled "dark heather gray" except for the plus-sized option that was dubbed "manatee gray." Target explained that it was an actual color found across a variety of lines and that relegating it to just one size in the dress was in error.

13. Some Target stores are downsizing.

The retailer's newest strategy is not to open airplane hanger-sized stores but to take advantage of areas where real estate is at a premium to open smaller-scale locations. At 17,000 square feet, they're just 15 percent of the size of a typical Target. The sites cater to a "grab and go" customer base near universities that may rely on public transportation and only needs to stock up on a handful of items. The company has opened about 100 of these stores around the country and plans to add 30 more per year.

14. Target reinvented the shopping cart.

While some stores are content to let metal shopping carts age less than gracefully, Target decided that their carts were in need of a makeover. In 2006, the company enlisted Design Continuum to reverse-engineer a cart so it was easier and more comfortable to maneuver. The store's plastic carts, which are 15 to 20 pounds lighter than a conventional steel cart, are less likely to damage shelves-or the calves of shoppers in front of you.

15. The Target dog flies first class.

Introduced in 1999, lovable store mascot Bullseye has been a constant in Target's ad campaigns. Naturally, the bull terrier travels in accommodations worthy of her position. She's been spotted in first class, and a rider specifies how long she's able to work during personal appearances.

Oh, and in case you're wondering, the bullseye dye on her face is vegetable-based.

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With roughly 1800 stores across the country, Target has leveraged its reputation as a slightly more upscale Walmart to become the second-largest retailer in North America. The company promises "clean, spacious" shopping areas and relies on a familiar red coloring scheme to make it stand out from a surplus of discount stores.

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At a meeting today for the investor community, Target Corporation (NYSE: TGT) Chairman and CEO Brian Cornell and members of his leadership team presented the vision and strategies that will transform the retailer's business.

"Following a thorough, strategic review of our business, coupled with a careful evaluation of the changing retail landscape, we have identified the key initiatives that will put Target on a clear path to growth," said Cornell. "We're focused on our future and building the capabilities that will take us further, faster. Redefining Target will require a renewed emphasis on prioritization and innovation, and above all else, putting our guests first in everything we do."

The retailer's differentiation in the marketplace will be driven by stronger merchandising authority and a shopping experience that is centered on ease and inspiration, with mobile serving as the front door to all of Target. The retailer also will reassert its cultural leadership to build unparalleled guest affinity. In addition, Target will create a headquarters team that is more agile, efficient and guest-focused.

Target's transformation roadmap includes the following areas of focus:

The retailer is taking a channel-agnostic approach to growing its business, driving a total Target experience across stores, online and mobile. Guests who shop Target in stores and online generate three times the sales compared to guests who shop in stores only. Continued enhancements in technology, supply chain and inventory management will create a shopping experience that is rooted in ease and inspiration. This will help spur Target's continued annual growth in digital channel sales of 40 percent, as well as contribute to a total projected sales growth of 2 to 3 percent and comparable sales growth of 1.5 to 2.5 percent in 2015.

Style, Baby, Kids and Wellness are being prioritized and will be the merchandise categories Target is famous for - the company will invest in these areas with a focus on newness and differentiation. In 2014, these four categories accounted for more than a quarter of Target's sales. Other categories, including Grocery, are being repositioned to deliver a more compelling and appealing shopping experience.

Target will create a more guest-centric experience by tailoring its assortment and offering more locally relevant products, with demographics, climate, location and other guest-led factors driving merchandising decisions. Additionally, Target will strengthen its data and analytics and technology capabilities to deliver more personalized digital experiences, loyalty programs and promotional offers.

Target's store opening plans will increasingly focus on new, more flexible formats like TargetExpress and CityTarget, which cater to guests in rapidly-growing, dense urban areas. Throughout 2015, the retailer will open eight TargetExpress locations across the country. In addition, the company will continue to open the right stores to fit each community and test new layouts in its general merchandise stores.

Cost savings of $2 billion over the next two years will fuel Target's growth and drive profitability. These savings will be realized through operations, technology and process improvements; supply chain and sourcing efficiencies; and corporate restructuring. The restructuring will be concentrated at Target's headquarters locations and focus on driving leaner, more efficient capabilities, removing complexity and allowing the organization to move with greater speed and agility. This includes the establishment of centralized teams based on specialized expertise and the elimination of several thousand positions over the next two years. This year, Target expects to invest between $2 and $2.2 billion in capital expenditures, including a $1 billion investment in technology and supply chain.

"While we're in the early days and there's no doubt that transformation can be challenging, we're taking the steps necessary to unleash the potential of this incredible brand," said Cornell. "I'm encouraged by our early momentum, and am confident that by implementing our strategy, simplifying how we work, and practicing financial discipline, we will ignite Target's innovative spirit and deliver sustained growth."

Statements in this release regarding growth rates in digital, comparable and total sales, future cost savings related to management's transformation plan, and fiscal 2015 capital expenditures are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements speak only as of the date they are made and are subject to risks and uncertainties, which could cause the Company's actual results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company's Form 10-K for the fiscal year ended Feb. 1, 2014 and Item 1A of the Company's Form 10-Q for the quarter ended Nov. 1, 2014.
About Target
Minneapolis-based Target Corporation (NYSE: TGT) serves guests at 1,795 stores and at Target.com. Since 1946, Target has given 5 percent of its profit to communities, that giving equals more than $4 million a week. For more information, visit Target.com/Pressroom. For a behind-the-scenes look at Target, visit ABullseyeView.com or follow @TargetNews on Twitter.

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Target Shares Roadmap to Transform Business

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At a meeting today for the investor community, Target Corporation (NYSE: TGT) Chairman and CEO Brian Cornell and members of his leadership team presented the vision and strategies that will transform the retailer's business.

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Jamie Gailewicz oversees the Bailey Brand Consulting Client Services team, where he is involved in the ongoing management of clients, delivering sound strategies and inventive solutions.
To sell to any audience, you have to understand it. Discovering how its members think, act, and purchase is only the first step to finding new opportunities to engage with them.

This is especially true of the Millennial generation, the newest target audience for many brands. As their purchasing power increases and the Millennials continue to drive consumer demand, it's necessary to reevaluate this generation and develop strategies for engaging them.

Each generation has an impact on society. The influence they wield creates social, cultural, and economic effects that impact the world they live in, not to mention the generations before and after them. Their influence also defines how they are perceived-right or wrong-so that various groups, corporations, and organizations can try to understand how to engage them.

Basic statistics about millennials

To reach the Millennials and integrate a brand into their lives, you'll need to understand the basics. There are roughly 79 million Millennials in the United States-25 percent of the population. The Millennials exceed the number of Baby Boomers (often their parents) by about 3 million.

The Baby Boom generation is a sizable force with significant influence on areas like purchasing power, political direction of the country, and now retirement. Their size has made it easier for them to influence society and grab the attention of corporations and organizations looking to capitalize on their numbers. The Millennials, with their larger population, stand to have equal or greater influence, especially considering differences like wealth, education, and their acceptance of ideas.

Two recessions have impacted Millennials: one at the beginning of the millennium, another in the great recession caused by the sub-prime mortgage crisis in 2009. Both have had a significant impact on their financial confidence and job security, which has affected how they define individual success and spend money.

Ironically, despite two recessions and the limited availability of post-college jobs, they live in households wealthier than the Baby Boomer generation did at the same age. In some cases, Millennials live with other people (such as parents, partners, or friends) to account for higher median household incomes, but the statistic relates to Millennials having the highest college attendance of any generation.

This puts them in a position to generate higher incomes once they start working. At times, they have been compared to the GI generation (Great Depression generation) because they can be viewed as frugal; however, most Millennials see themselves as conscientious with their money, making educated purchases and shunning excess.

Millennials social behaviors

As we slowly move on from the 2009 recession, Millennials will have greater purchasing power (because of their education) and far more influence (because of their numbers).

The recessions may have shaped how Millennials spend money, but the changes-social and cultural-of another time period have shaped their ideals. Millennials are children of the '80s and '90s-most becoming aware of their impact on society in the late '80s through the early '90s. They learned about responsibility to the environment, tolerance and acceptance of others, and that an individual can make a difference.

Millennials are the recycling generation, raised on the idea that sorting garbage minimizes waste. They learned about global warming and how dependency on fossil fuels can have a dire effect on the world. They were taught to be conscientious of what they consume and how they live in a way that generations before them were not.

The Millennials saw women (including their mothers) impact the workforce, dispelling the misconception that women are limited to either a career or a family. Rather, they could have both while also climbing the corporate ladder. They saw women achieve a greater voice in society and were raised on the idea that everyone is equal regardless of sex or race. They were educated on the injustices of the past and began to see more racial integration in their everyday lives.

For other generations, this idea was new and centered on the idea of "learning to accept." For Millennials, this is the norm that governs how people should live together in society. We see the effects of these beliefs today with the approval of gay rights and more instances of interracial dating and marriage than ever before.

Millennials and technology

More than any other generation, Millennials rely on each other, sharing opinions with friends to make more informed decisions. They have technology at their fingertips (smartphones) and a number of platforms by which they communicate (Facebook, Instagram, Twitter, etc.).

Social media has transformed how this generation shares its thoughts and extends its influence over others. Stars, Likes, and comments have given them power to share their opinions and pass judgment on the things they approve and disapprove.

Whether supporting a cause, offering an opinion about a product, or simply giving their support to a political figure, Millennials know their voice has power-and they are wielding it.

To say technology is a significant factor in how this generation communicates is an understatement. Much has been written about their use of data and devices with the same conclusions: Millennials see technology not just as a device or platform for communication but as a way to improve life, make better choices, and contribute to society.

It should be no surprise that this generation uses social media and various devices that connect to that world at higher levels than other generations. They have the highest numbers of early adoption of new technology compared to past generations.

Tablets, smartphones, and laptops have given them freedom to access what they need when they need it and have helped them become multi-taskers. Television is a multi-dimensional experience for them: they may watch a show while texting friends about the plot lines and shopping for an outfit they see on their favorite character. They find value in these robust experiences-enjoying something on their own while simultaneously sharing it with their friends.

Instant gratification is a common theme with the Millennial. Increased accessibility has created an expectation that Millennials can have whatever they want whenever they want it. This notion does not have to be limited to the digital world.

Millennials still make in-store purchases, but they often shop online as well, and the lines between the two are becoming increasingly blurred. Timely gratification is important. This group looks for speed, ease of purchase, and efficiency when choosing a shopping destination.

Brands that have a social media presence, manage a user-friendly website, and engage their customers with relevant, fresh content have a greater chance to impact Millennial purchasing decisions.

Creating a forum for this group to communicate and share their opinions with each other can create loyal followers and increase sales. However, if a brand's offering does not satisfy their needs, the judgment they pass can make or break its adoption and success.

Catering to the Millennial consumer profile

Ongoing engagement is necessary to keep Millennials interested and feeling like the brand is adding value to their lives. If you draw correlations to the high education levels of this group, you might assume that their hunger for knowledge drives their choice of brands. Studies have shown that Millennials don't like brands that explicitly "sell" to them; but brands that sell by providing new, robust, relevant information will have more success and create repeat engagement.

Brands offering content that enhances a product or service while tapping into other Millennial interests gives more dimension to the brand's relevance. For example, when a brand engages a cause its audience values or provides ways to use a product to enhance an experience, that brand has added significant value for the Millennial consumer.

Some food and spirit brands provide content to help Millennials create the perfect restaurant-quality meal or host a social gathering using the brand's product. The brands that adopt this strategy position themselves as an asset to the Millennials' needs or wants, allowing them to become more than their products and services-they become the provider of an experience that this generation wants.

Brands that provide more depth or substance to their offerings and give greater explanations of why they are relevant give the Millennial more reason to make them a part of their lives. And it gives them more reason to share with others, helping the brand build an organic and loyal following. Open, ongoing, relevant communication is the key to a brand's success with this generation.

Underlying insights

The challenge for any brand is to determine what is relevant for the Millennial audience, which harkens back to their ideals and social dynamics. Having a Facebook account, posting on Twitter, and providing content is critical, but there are many brands that do this with limited success.

There are 79 million Millennials in the United States that have different tastes, desires, and goals. Some believe that buying organic products has a direct benefit to help them achieve a healthy lifestyle; others seek portable grab-and-go solutions that don't take time out of their day; still others appreciate both.

There are Millennial parents who are constantly seeking new ideas to improve, simplify, and help define their parenting style. Trying to find the commonalities may be difficult, but there are some underlying insights that can be leveraged:
1) Value
Quality is important to the Millennial, but the price must still be fair. The catch, of course, is defining "fair." Something that is expensive to one person may be cheap to another, and it may have no correlation to income. This reflects the value an individual puts on the item and how it fits into his or her lifestyle.

In truth, most consumers think this way, and the concept of affordable luxury stems from it. A pair of shoes may be overpriced for one person, while another may see them as a necessary accessory. People who don't see value in the shoes may put their money into a piece of technology, priced similarly to the shoes, but more targeted toward their needs.

It's not a revolutionary thought, but with a generation that is very conscientious about how it spends money, it is critical for brands to make sure their products and services speak to their quality and relevancy. Brands that have a robust backstory or a unique proposition that gives credibility to their products and services should promote that information to this audience.
2) Relevancy
Making it "their own" is another trait of Millennial consumers. The information Millennials pull from to make choices is vast; they are constantly exposed to and influenced by diverse experiences.

The global connections created by the Web have developed a larger market of choices, and new products and services are being invented so rapidly that part of the fun for this generation is discovering them. Once they find these items, they quickly share them with like-minded friends and recommend them to the world, building a following.

An example is how this generation makes parenting choices. Other generations would rely mostly on their parents to provide insight on how to care for children. They might talk to a friend to get more thoughts, but even so, advice was almost always limited to people they knew.

Millennials still get advice from parents and friends, but they are also influenced by people all over the world. Access to global ideas, knowledge, and personal experiences help give them different perspectives. They pick and choose from the information available to them to create the style of parenting that suits their needs and reflects their values.

Millennials know they have a breadth of available choices, and they rely on feedback from others to help them make their choices. Brands don't have to be progressive or retro to be adopted, they just have to be relevant and prove their effectiveness to the Millennial audience.
3) Authenticity
The last insight, critical to marketing to this generation, is accepting that it has more choices than any other. The volume of media thrown into today's market creates a tremendous amount of noise for this generation to contend with-noise that is easily dismissed as differentiation becomes more difficult.

As William Irwin Thompson sees it, "In this world of information overload, the benumbed citizen no longer reads or thinks; he watches and feels."

This is not, however, the whole truth.

The Millennials do watch and feel, but they still read and think; combining all these experiences allows them to make thoughtful choices. They have been taught to expect more and challenge the ideas that are presented to them.

To break through the noise, marketing efforts (as well as the products and services they represent) must have substance and authenticity to be respected by the Millennial. If something doesn't resonate or is oversold, chances are they won't adopt it. Understand their spirit, respect their intelligence, and give them something to be inspired about, and your brand has a fighting chance.

Conclusion

The Millennials, like any generation, are influenced by the culture and world developing around them. Technology and changing social dynamics have a profound effect on their beliefs and actions.

To dismiss them as simply arrogant, lazy, or over-opinionated overlooks what makes them special and different from other generations. This group will challenge, expect more, and desire a better idea for how to live: Ignoring them may well lead to the demise of your brand. This generation is just realizing its purchasing power; as another decade passes, the brands they have built relationships with today will be the ones they are loyal to tomorrow.

Besides, learning to market to this generation will better prepare your brand for the next-who, at the age of one, are already using iPads and being influenced by the world at speeds so far ahead of other generations that it's hard to imagine what their values will be.

Read next: 5 lessons I learned about leadership as a sergeant in the Israeli army

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Marketing to Millennials: The consumers to change the market landscape

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Jamie Gailewicz oversees the Bailey Brand Consulting Client Services team, where he is involved in the ongoing management of clients, delivering sound strategies and inventive solutions. To sell to any audience, you have to understand it. Discovering how its members think, act, and purchase is only the first step to finding new opportunities to engage with them.

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is among the most recognized retailers in the United States, with both a symbol (bulls eyes), store mascot (bulldog) and store color (red) that most consumers identify with without even saying or seeing the Target name. Branding aside, the experience of shopping at a Target store is nothing extraordinary, yet somehow has set the bar when it comes to shopping at discount stores. Surprisingly, though, even those that shop at Target would hardly recognize it as a discount store - such as Wikipedia identifies it as - but rather a superstore where you can buy everything you need in one convenient place. It's with this in mind that Target has set the bar for other retailers when it comes to creating an in-store experience that encourages you to spend more than you planned to and return sooner than you thought.

Gary Ambrosino, President & CEO of TimeTrade, explains why Target stands out among it's competition, stating that knowledgeable staff and the willingness to support customers is among the reasons Target leads the pack among discount competitors when it comes to store reputation.

Standout shopping experiences are few and far between today. Customers are walking through doors and 88% are leaving empty handed because they can't find the help they need. Target, on the other hand, keeps raising the bar by investing in smart employees who are on hand to provide instant recommendations to customers. Target's associates are known for being fast, knowledgeable and available when the customer needs them most-and that's a big win in shoppers' books," Ambrosino states.

Compared to Target's most notable competition, including Walmart and Meijer stores, the staff at Target really do make a difference in the total experience a customer has shopping at Target versus other discount retailers. And while not every two stores are the same, collectively Target has a stronger reputation in supportive staff - even if they don't always know the answer.

I have a choice between Target and Walmart in my local hometown, and while both offer comparable products, I'll pick Target any day because I know the experience will be more enjoyable. Plus, their staff is friendly, looks me in the eye and offers to help me even when I don't need it," states stay-at-home mom and frequent shopper Wendy Simmons from Aurora, Illinois.

The Paying Difference
A recent report from TimeTrade identified that after surveying 60 major retailers in late 2013, 80% noted that sales increased by 25-50% when shoppers were assisted by knowledgeable retail associates. And while Target isn't known for it's hands on customer service the way many specialty stores or Apple stores are, their staff is easily recognized in red and welcoming to customers with a willingness to assist should the customer need anything. This alone sets themselves apart from their discount store competitors where you often have to hunt someone down just for a price check or question about an item availability within the store.

Additionally, Target seems to have mastered the power of displays - therefore capturing more sales as a result. A great example of this are the bins most Target stores have merchandised near the front entrance. These bins typically consist of $5 and under items - mostly $1 and $3 even - and are strategically placed near the entrance of the stores that both welcome you as you enter and greet you as you head to make your final purchase. These bins are assorted with seasonal knick-knacks, ranging from holiday displays to children's toys to personal care essentials to fun candies. Additionally, they are nearly never neatly kept and always seem a bit picked over - making it appear as you (the shopper) should grab what you can since what's remaining won't be there for long. And while that may be a natural side effect to lots of hands rummaging through them, it no doubt effectively encourages other shoppers to fill up their carts, as well. The lesson to gain from this is that if you're a retailer looking to capture easy sales, low priced and novelty themed items are the way to do it. The better lesson to learn, however, is that attractive, easy to reach displays that are enticing in their product features will capture customer's attention and dollars since consumers won't have to think too hard about adding these low priced items to their purchase. Target seems to have mastered gaining a few extra dollars - at least - from every customer by merchandising their stores well and offering multiple "add-on-sale" opportunities.
The Final Picture
In TimeTrade's recent report highlighting retailers and shoppers, they also unveiled that 85% of shoppers purchase more than they intended when helped by a knowledgeable associate. With data like that, it's hard to argue that investing in quality employees and then training them to support customers is vital in gaining stronger sales. For Target, who has certainly seen it's fair share of bad press due to it's 2013 data breach, should relish in the fact that it's reputation also consists of many customers preferring their 's in-store shopping experiences compared to their immediate competition due to strong displays, enticing products and - most importantly in many consumer's eyes - a staff that is eager to help.

Follow me on Twitter. Check out my website or some of my other work here.

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How Target Stands Out Among Its Discount Store Competitors

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Target is among the most recognized retailers in the United States, with both a symbol (bulls eyes), store mascot (bulldog) and store color (red) that most consumers identify with without even saying or seeing the Target name. Branding aside, the experience of shopping at a Target store is nothing extraordinary, [...]

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Some surprising facts about Target, now #38 on the Fortune 500 list.

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NextAdvisor, in partnership with TIME, is a free resource to help you make smart money moves that make a big impact on your wealth.

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Just why is Target so successful in a highly competitive discount retail market? A recent CNBC special called Target: Inside the Bullseye charts the company's success since its origins as the Dayton Dry Goods Company. When Dayton launched its discount chain, Target, they worked hard to actively market the brand distinctly from Wal-Mart. Price is important, but equal emphasis was placed on design and style. This concept really took if in the 1990s when Target began partnering with leading designers to offer exclusive lines of products at discount prices. In the documentary, early partners of Target comment how risky this move was for them since upscale retail is so much about uniqueness and exclusivity.

Target employees a large workforce of aggressive trendsetters who actively seek out the most fashionable brands and merchandise. Attempts by Wal-Mart and K-Mart to replicate this phenomena have proved less successful. In some ways this isn't too surprising, attempting to make Wal-Mart and K-Mart look "cool" at this point is like pushing water uphill and, frankly, not really worthwhile. Target's emphasis on its brand's image from an early stage has allowed it to achieve what no other discount retailer has in North America. Whether the Target model can be replicated successful in other markets remains to be seen.

Here in Canada, Target is planning a major expansion into the market by taking over the leases for struggling retailer Zellers. For Canada, this is the largest retail shake-up since Wal-Mart entered the scene. A recent Globe & Mail Article speaks to the major transformations being generated by Target. The next few years should be very interesting. Target's arrival sparks mall land rush

Target's original logo from 1968 - apparently one of early design concepts also included a few bullet holes but were deemed to look too violent.

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Just why is Target so successful in a highly competitive discount retail market? A recent CNBC special called Target: Inside the Bullseye charts the company's success since its origins as the Dayton Dry Goods Company. When Dayton launched its discount chain, Target, they worked hard to actively market the brand distinctly from Wal-Mart.

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The Investor Relations website contains information about Target Corporation's business for stockholders, potential investors, and financial analysts.

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all about Target | Target Corporation fact sheet

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Fast facts and company overview of Target Corporation

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download image download bio PDF
Brian Cornell is board chairman and CEO of Target Corp. He is responsible for Target's global business, including the company's nearly 1,900 U.S. stores, digital properties and more than 350,000 team members.

Cornell joined Target in August 2014 after more than 30 years in escalating leadership positions at leading retail and global consumer product companies, including three CEO roles and more than two decades doing business in North America, Asia, Europe and Latin America. His past experience includes time as both a vendor partner and a competitor to Target, and he brings insights from those roles to the company today.

Cornell currently serves as the non-executive chairman of the board of directors for Yum! Brands and is the Immediate Past Chairman of the Retail Industry Leaders Association (RILA). He previously served as a director for other global brands, including The Home Depot and Polaris Industries.

Cornell is also a board member for Catalyst and the Smithsonian's National Museum of African American History and Culture. He earned a bachelor's degree from UCLA in 1981 and attended its Anderson School of Management.

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download image download bio PDF Brian Cornell is board chairman and CEO of Target Corp. He is responsible for Target's global business, including the company's nearly 1,900 U.S. stores, digital properties and more than 350,000 team members.

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Target ( TGT) is a discount retailer that generates revenue by offering competitively priced consumer goods. Similar companies competing directly with Target include Walmart ( WMT) and Costco Wholesale ( COST). Businesses in the retail industry do not produce products directly and must obtain their goods using contracts with manufacturers. The discount retail industry has come under increasing pressure due to the convenience and competitive price model offered by Amazon ( AMZN), and Target is no exception.

Key Takeaways

A Look at the Discount Retail Sector

Department stores such as Target, Walmart, and Costco provide customers with a broad range of products and maintain complex inventory management systems. These stores sell products to consumers at lower prices and rely on staple consumer goods such as clothing, household products, and food.

All three of these companies sell essential products like food, which allowed them to remain open during the coronavirus lockdowns. Furthermore, the closing of competing stores selling only less necessary goods, such as fashion accessories and consumer electronics, also contributed to continued sales. As a result, the stocks of Target, Walmart, and Costco all held up much better than the S&P 500 during the bear market in early 2020. However, Target's stock suffered a larger maximum drawdown than its competitors, perhaps because it is less focused on low prices.

Consumer disposable income significantly influences sales. The general economy's overall health often correlates closely with retail sales and profitability for discount retailers such as Target. Future growth for these companies depends on their ability to thrive under continually changing conditions. Retailers must come up with smart, creative strategies to retain market share.

The Demographics of Discount Retail Shoppers

Target typically appeals to customers who enjoy higher incomes by emphasizing high-quality merchandise and low-cost designer fashion. Walmart's emphasis on low prices typically draws shoppers with lower household incomes. Costco shoppers are often affluent, suffering less direct impact from a general market recession than Target and Walmart customers.

Target competes directly with Costco for these customers while also striving to compete with Walmart's prices, positioning itself competitively among lower-income shoppers. Future growth for discount retailers, such as Target, depends on connecting with customers. They must also keep margins healthy enough to pay investors sufficient dividends and find ways to profit from current economic conditions. These companies must provide products that drive sales by motivating customers to shop.

Many retailers open new stores to drive additional growth. They also add products, such as food, which many department stores began selling to encourage sales growth. Strong competition motivates many retailers to reduce margins to remain competitive on pricing. Although margin reduction as a strategy may improve prices, it also leaves smaller profits for investors.

Delivery Service

Target got serious about its delivery operations in December of 2017 with the announcement that it was buying Shipt, an online delivery company, for $550 million.﻿﻿ This new offering allows Target to deliver products and groceries to consumers within hours of making an online purchase. Busy and successful people seem to have less time available for going to stores. They are willing to pay a premium for delivery. Home delivery was already growing dramatically before the panic over the coronavirus caused demand to surge.

Shipt has a good reputation as a premium delivery option that provides high-quality service. Shipt gives customers the ability to set a specific delivery time and pay tips to employees for timely service. That contrasts sharply with traditional package delivery services, which are increasingly focused on keeping costs down to get big contracts. Furthermore, goods from many other firms, including Target's rival Costco, were available via Shipt in early 2020.

However, Target's competitors have not been idle. Amazon realizes that letting any other firm get an edge on the delivery of anything is a threat to their business. Amazon expanded Whole Foods and launched the Amazon Fresh grocery delivery service to compete in this market. Walmart joined forces with DoorDash to provide grocery delivery to its customers. Online consumers order directly from Walmart and enjoy the same low prices as customers at their stores. The only additional charges are for delivery and tips. Costco also offers the ability to order directly from their website, and Instacart makes the delivery.

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Target ( TGT) is a discount retailer that generates revenue by offering competitively priced consumer goods. Similar companies competing directly with Target include Walmart ( WMT) and Costco Wholesale ( COST). Businesses in the retail industry do not produce products directly and must obtain their goods using contracts with manufacturers.

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Address:

Company Perspectives:

Target Corporation is a growth company focused exclusively on general merchandise retailing. Our principal operating strategy is to provide exceptional value to American consumers through multiple retail formats ranging from upscale discount and moderate-priced to full-service department stores.

Key Dates:

1902:

George Draper Dayton opens the Goodfellow Dry Goods store in a six-story building in downtown Minneapolis.

1903:

Corporate name is changed to Dayton Dry Goods Company.

1910:

Name is shortened to Dayton Company.

1938:

Dayton dies; his son Nelson takes over the $14 million business.

1956:

Company builds the world's first fully enclosed shopping mall, called Southdale, located in suburban Minneapolis.

1962:

The discount Target chain is launched.

1967:

Company changes its name to Dayton Corporation and makes its first public stock offering.

1969:

Dayton merges with the Detroit-based J.L. Hudson Company department store chain, forming Dayton Hudson Corporation.

1978:

Dayton Hudson acquires the California-based Mervyn's chain of moderate-priced department stores.

1979:

The Target chain becomes Dayton Hudson's largest producer of revenue.

1990:

Marshall Field & Company, a Chicago-based department store operator, is acquired.

1995:

The first SuperTarget combined discount/grocery store opens; the Target Guest Card, the first store credit card in the discount retail industry, makes its debut.

1998:

As part of e-commerce push, Rivertown Trading Company, a Twin Cities-based mail-order firm, is acquired.

2000:

Reflecting the increasing importance of its discount chain, Dayton Hudson renames itself Target Corporation; Target Direct is formed as a separate e-commerce unit.

2001:

The names of the Dayton's and Hudson's department stores are changed to Marshall Field's, and then to Target Corporation.

2004: Target sells off Marshalls and Mervyns.a.

2011: Announced expansion into Canada, through the purchase of a Canadian chain called Zellers, and plans on having between 100-150 stores by 2014.

2012: CityTarget is a new store aimed at the urban market, which has a smaller format. The first stores are in the major cities of Chicago, Portland, Los Angeles and Seattle.

Company History:

Target Corporation is the fourth largest retailer in the United States, operating 1,556 stores in 47 states. Formerly Dayton Hudson Corporation, Target has three main retail divisions: Target Stores, Mervyn's, and Marshall Field's. Target Stores is the number two discount retailer in the country, trailing only Wal-Mart Stores, Inc., and has distinguished itself from its competitors by offering upscale, fashion-conscious products at affordable prices. The 1,225 Target stores, which are located in 47 states, generated 84 percent of Target's fiscal 2002 revenues. Included in this store count are Target Greatland units, which are much larger than the typical Target store, averaging 145,000 square feet versus 126,000 square feet; as well as SuperTarget outlets, which are combined discount/grocery stores, averaging 175,000 square feet. Generating 9 percent of 2002 revenues were Mervyn's 267 stores situated in 14 states, primarily in the West, Southwest, and Midwest (specifically Minnesota and Michigan). Based in the San Francisco Bay area, Mervyn's positions itself as a chain of moderately priced, family friendly, neighborhood department stores. Target Corporation's full-service department store division, contributor of 6 percent of sales, is now consolidated under the Marshall Field's banner. The 62 Marshall Field's stores (which include locations that formerly operated under the Dayton's and J.L. Hudson's names) are located in eight states in the upper Midwest, with the majority found within three metropolitan areas: Minneapolis, Chicago, and Detroit. Target Corporation's philanthropy has been and still is legendary. In 1989 the corporation received the America's Corporate Conscience Award for its magnanimity, and Target contributes more than $2 million each week to the communities in which its stores are located.

Early Years

Target Corporation bears the strong imprint of its founder, George Draper Dayton. Dayton's father, a physician in New York state, could not afford to send him to college, in part because the doctor freely gave his services to the poor. Hence Dayton set off on his own in 1873 at age 16 to work in a coal and lumberyard. A workaholic, he undermined his health and a year later had to return to the family home to recuperate. Undeterred, he went on to become a banker. Less than ten years later, in 1883, he was rich enough to buy the Bank of Worthington in Minnesota. Meanwhile he had married and had become active in the Presbyterian Church.

Dayton's connection with the Presbyterian Church proved to be instrumental to the rise of his Dayton Company. In 1893, the year of a recession that sent local real estate prices tumbling, the Westminster Presbyterian Church in Minneapolis burned down. The insurance did not cover the cost of a new building, and the only other source of income, a corner lot next to the demolished church, was unsalable because the real estate market was doing poorly. The congregation prevailed on the Dayton family, who were faithful members of the church, to purchase it so the building of a new church could proceed. Dayton bought it and eventually erected a six-story building on the lot. Casting about for tenants, he decided to buy the nearby Goodfellow Dry Goods store and set it up in the new building. In the spring of 1902 the store was known as the Goodfellow Dry Goods store; in 1903 the corporate name was changed to Dayton Dry Goods Company, then seven years later simply Dayton Company, the forerunner of Dayton Hudson Corporation and, ultimately, Target Corporation.

Eventually the store would expand to fill the six-story edifice. Dayton, with no previous experience in the retail trade, wielded tight control of the company until his death in 1938. His principles of thrift and sobriety and his connections as a banker enabled the company to grow. As long as he was at the helm, the store was run as a family enterprise. Every Christmas Eve he would hand out candy to each employee of the store. Obsessed with punctuality, he was known to lock the doors at the onset of a meeting, forcing latecomers to wait and apologize to him in person afterwards. The store was run on strict Presbyterian guidelines: no liquor was sold, the store was closed on Sunday, no business travel or advertising was permitted on the Sabbath, and Dayton Company refused to advertise in a newspaper that sponsored liquor ads.

This approach did not stifle business; Dayton Company became extremely successful. A multimillion-dollar business by the 1920s, Dayton Company decided it was ready to expand, purchasing J.B. Hudson & Son, a Minneapolis-based jeweler, in 1929, just two months before the historic stock market crash.

Dayton Company managed to weather the Great Depression, although its jewelry company operated in the red for its duration. Dayton's son David had died in 1923 at age 43, and George turned more and more of the company business over to another son, Nelson. George Draper Dayton died in 1938. He left only a modest personal fortune, having given away millions of dollars to charity. In 1918 the Dayton Foundation had been established with $1 million.

Nelson Dayton took over the presidency of Dayton Company in 1938, when it was already a $14 million business, and saw it grow to a $50 million enterprise. World War II did not hamper business; rather, Dayton's turned the war into an asset. Consumer goods were so scarce that it was no longer necessary to persuade shoppers to buy what merchandise was available. Sales volume increased dramatically thanks to Dayton's managers, who obtained goods to keep the store full. Nelson Dayton was scrupulous about complying with the government's wartime control of business and when, for instance, the government carried out its drive for scrap metal, he ordered the store's electric sign dismantled and added to the scrap heap. Until Nelson Dayton's death in 1950, the company was run along the strict moral lines of his father, its founder. In January 1944 Dayton's became one of the first stores in the nation to offer its workers a retirement policy, followed in 1950 by a comprehensive insurance policy.

Shedding Conservative Image, Launching Target: 1950s-60s

With Nelson Dayton's death in 1950, Dayton Company embarked on a new era. Instead of one-man rule, the company was led by a team of five Dayton cousins, although one of them, Nelson's son Donald Dayton, assumed the title of president. The prohibition of liquor in the store's dining rooms was dropped, and soon Dayton Company would be completely secularized, advertising and doing business on Sunday.

The new management of Dayton Company undertook radical and costly innovations. In 1954 the J.L. Hudson Company, which would eventually merge with Dayton's, opened the world's largest shopping mall in suburban Detroit. It was a great success, and two years later Dayton Company decided to build a mall on a 500-acre plot of land outside of Minneapolis. Horrified to learn that Minneapolis had only 113 good shopping days a year, the architect decided to build a mall under cover; Southdale, the first fully enclosed shopping mall in history, was the result, with Dayton's as one of its anchor stores.

The safe, conservative management style favored by George Draper Dayton and his son Nelson passed into history; a younger, more aggressive management pushed for radical expansion and innovation would follow in its wake. The company established the discount chain Target in 1962, opening the first unit in Roseville, Minnesota, and in 1966 decided to enter the highly competitive market of retail bookselling, opening B. Dalton Bookstores.

In 1967 the company changed its name to Dayton Corporation and made its first public stock offering. That year, it also acquired San Francisco's Shreve and Company, which merged with J.B. Hudson to form Dayton Jewelers. In 1968 it bought the Pickwick Book Shops in Los Angeles and merged them with B. Dalton. Also in 1968 the company acquired department stores in Oregon and Arizona. The following year brought the acquisition of J.E. Caldwell, a Philadelphia-based chain of jewelry stores, and Lechmere, a Boston retailer.

Acquiring Hudson's, Mervyn's, and Marshall Field's: 1969-90

The year 1969 also saw a major acquisition: the Detroit-based J.L. Hudson Company, a department store chain that had been in existence since 1881. The merger resulted in Dayton Hudson Corporation, the 14th largest retailer in the United States. Dayton Hudson stock was listed on the New York Stock Exchange.

With the merger, the Dayton Foundation changed its name to the Dayton Hudson Foundation. Since 1946, 5 percent of Dayton Company's taxable income was donated to the foundation, which continued to be the case after the merger. The foundation inspired the Minneapolis Chamber of Commerce in 1976 to establish the Minneapolis 5% Club, which eventually included 23 companies, each donating 5 percent of their respective taxable incomes to charities. By the close of 1996 the foundation had donated over $352 million to social and arts-based programs.

Dayton Hudson bought two more jewelers in 1970--C.D. Peacock, Inc., of Chicago, and J. Jessop and Sons of San Diego. Company revenues surpassed $1 billion in 1971.

California-based Mervyn's, a line of moderate-price department stores, merged with Dayton Hudson in 1978. That year Dayton Hudson became the seventh largest general merchandise retailer in the United States, its revenues by 1979 topping $3 billion. Also in 1979 the Target chain become Dayton Hudson's largest producer of revenue, eclipsing the department stores upon which the firm was founded.

Dayton Hudson bought Ayr-Way, an Indianapolis-based chain of 50 discount stores, in 1980, and converted those units to Target stores. In 1982 the company sold Dayton Hudson Jewelers to Henry Birks & Sons Ltd. of Montreal, and in 1986 it sold B. Dalton to Barnes & Noble, Inc. In 1984, meantime, the operations of the company's two full-service department stores were combined into a new unit called the Dayton Hudson Department Store Company, though the Dayton's and Hudson's units themselves retained their separate identities. Revenues topped the $10 billion mark in 1987.

The late 1980s found the company the focus of an unsolicited takeover bid by the Dart Group, which would involve lawsuits by both parties before a stock market crash in October 1987 ended the takeover attempt. A second attempt at takeover of the company would be made nine years later, when rival J.C. Penney Company, Inc. offered more than $6.5 billion for the retailer. The offer, which analysts considered an undervaluation of the company's worth, was rebuffed. Meanwhile, Dayton Hudson continued its acquisitions, purchasing Marshall Field & Company from BATUS Inc., the U.S. subsidiary of B.A.T. Industries PLC, in 1990 for about $1 billion. Venerable Marshall Field's was as much a landmark in the Chicago area as Dayton's was in Minneapolis and the Hudson's stores were in Detroit; the acquisition added 24 department stores to Dayton Hudson's Department Store division while also doubling its department store retail space.

Launching Target Greatland, SuperTargets, and the Target Guest Card: 1990-95

While the Dayton's, Hudson's, and Marshall Field's department stores offered the monied customer more costly and sophisticated merchandise, the popular Target and Mervyn's catered to the budget-conscious customer, offering apparel and recreational items on a self-service basis. With the approach of the 21st century, Target continued to be Dayton Hudson Corporation's biggest moneymaker, combining a successful business mix of clean, easy-to-navigate stores with quality, trend-responsive merchandise. The year 1990 saw the opening of the first of over 50 expanded Target Greatland stores; in 1995, following the lead of such rivals as Wal-Mart and Kmart, the company opened its first SuperTarget, which combined the chain's successful general merchandise mix with a grocery store. Along with expanding its traditional department stores along the East Coast, six new SuperTargets were planned for 1996 alone. Also introduced in 1995 was the Target Guest Card, the first store credit card in the discount retail industry. By 1998 the Guest Card had attracted nine million accounts.

The proliferation of shopping malls and the recessionary economy of the early 1990s caused sharp changes in consumer spending patterns throughout the United States. By 1996 the country could boast 4.97 billion square feet of retail space--an average of 19 square feet per person nationwide--but retailers felt the pinch caused by such a large number of stores courting increasingly spending-shy consumers. This situation most negatively affected the mid-range and upper-range sales volumes generated by stores on the level of Mervyn's, Dayton's, Marshall Field's, and Hudson's. In response, Dayton Hudson developed new merchandising, customer service, and advertising strategies in an effort to stabilize these units' falling sales volumes. Mervyn's focused greater reliance upon national brands, coupling this with the growing use of print advertising and market expansion through the acquisition of six Jordan Marsh stores and five Lord & Taylor stores in south Florida. Dayton's, Hudson's, and Marshall Field's courted the upscale consumer through an increased mix of unique, quality merchandise, an increased emphasis on customer service, and an increased sales-floor staff, all of which heralded a return to the "old-fashioned service" on which Dayton Hudson was founded. Meanwhile, the Department Store unit worked to reduce inventories and invest in remodeling and technologically enhancing some of its older stores.

Reaching New Heights Under Ulrich: Late 1990s and Beyond

In 1994 Target executive Robert J. Ulrich was named chairman and CEO of Dayton Hudson. In that same year the company began a new strategy: developing a "boundaryless" corporate structure wherein resources and marketing and management expertise could be shared by each of the three divisions to create a more efficient organization. In 1996 Ulrich launched a three-year program to cut $200 million in annual operating expenses, particularly at the underperforming Mervyn's and department store units.

By early 1997 the Dayton Hudson Corporation consisted of three major autonomously run operating units: Target, with 735 discount stores in 38 states, represented the company's primary area of growth; the moderately priced Mervyn's chain operated 300 stores in 16 states, and the upscale Department Store Company operated 22 Hudson's, 19 Dayton's, and 26 Marshall Field's stores. Such broad-based expansion from the first six-story building in which Dayton was housed no doubt would have stunned the company's founder. Capital expansion, as well as more varied retailing, had taken their place alongside the old policies of thrift and sobriety.

During 1997, as part of its drive to turn around the Mervyn's chain, Dayton Hudson sold off or closed 35 Mervyn's outlets, including all of that chain's stores in Florida and Georgia. The late 1990s also saw a retrenchment on the department store front, as Dayton Hudson sold its Marshall Field's stores in Texas and also closed its Marshall Field's store in downtown Milwaukee.

Dayton Hudson also continued its efforts to give back to the communities that it served. During 1997 the corporation and its retail divisions made grants of approximately $39 million, including $2.8 million in scholarships that were given to high school seniors who had been involved in their communities. That year, the Target chain launched its Take Charge of Education program, which quickly became one of the corporation's most popular community support efforts. The program allowed Target Guest Card holders to sign up the school of their choice to receive 1 percent of their Guest Card purchase amounts. Within two years, more than 300,000 schools were registered and more than $800,000 had been given to these schools.

Ulrich's cost-cutting efforts, the trimming of Mervyn's and Marshall Field's, and--most importantly--the juggernaut that Target had grown into combined to bring unprecedented levels of profitability to Dayton Hudson by the end of the 1990s. While revenues increased to $33.7 billion by fiscal 1999, net income passed the $1 billion mark for the first time, reaching $1.14 billion, translating into a profit margin of 3.4 percent. This represented a near tripling of the 1996 profits of $463 million and a near doubling of the profit margin that year, 1.8 percent. These results were driven primarily by the Target chain, which had become one of the hottest commodities in retailing. Ulrich had concentrated on making Target a hip chain featuring stylish products at bargain prices. For example, in early 1999 the chain began selling top-end Calphalon cookware and also launched a line of stylish small appliances and household goods designed by architect Michael Graves--the latter line becoming so popular that it quickly grew to include more than 500 items. Through such innovations Ulrich succeeded in clearly setting Target apart from its discount competitors--even leading some customers/fans to use a fancy French pronunciation of the chain's name: Tar- zhay. Meantime, the chain continued to grow at the rate of about 70 stores per year, expanding into the key urban areas of Chicago and New York City, as well as making a more widespread push into the Northeast. As a result, the 900-strong Target chain was generating more than three-quarters of Dayton Hudson's revenues by decade's end, compared to around half ten years earlier. The growing predominance of the discount chain led the corporation to rename itself Target Corporation in January 2000.

During this same period the corporation quietly developed an e-commerce strategy that involved managing its own online distribution. It bought Rivertown Trading Company, a Twin Cities-based mail-order firm, in 1998 for $120 million to handle fulfillment, marketing, and distribution services for the e-commerce efforts of all the corporation's retail units. Online retailing gained a larger profile in early 2000 with the formation of a separate e-commerce unit called Target Direct. New store brand web sites were launched later that year.

The Internet push also played a role in more name changes. In January 2001 the corporation announced that it would change the names of its Dayton's and Hudson's department stores to Marshall Field's. Target was planning to launch an online gift registry during 2001 and wanted to do so under a unified department store name. Marshall Field's was chosen for several reasons: it was the most widely known of the three names, its base of Chicago was bigger than both Minneapolis and Detroit and was a major travel hub, and it was the largest chain, with 24 stores, compared to 19 Dayton's and 21 Hudson's.

At Target Stores (the official name of the discount division), meantime, use of the Target Guest Card began to plateau as consumers gravitated more to third-party Visa and MasterCard cards, cutting their use of private-label cards. Testing began on a Target Visa card in the fall of 2000, and by early 2003 nearly six million Guest Card accounts had been converted to the new Visa card. The Target chain itself kept expanding in the early 2000s, adding 62 discount stores to the total as well as 32 new SuperTarget stores during fiscal 2002, bringing the overall total to nearly 1,150 and the SuperTarget count to around 100. By this time, the Target Stores division was generating 84 percent of the parent company's revenues. Profits reached $1.65 billion, despite the continuing struggles of the Mervyn's and Marshall Field's divisions, where earnings were on the decline. Rumors continued to swirl about the possible divestment of one or both of these divisions, neither one of which was adding to its store count (Marshall Field's in fact sold its two stores in Columbus, Ohio, in 2003). Ulrich consistently denied such rumors, however, and thus far the stellar success of the Target Stores division had more than made up for the disappointing performance of Target Corporation's other retail units.

In June 2004, Target Corporation announced it would be selling the Marshall Field's chain to St. Louis, Missouri-based May Department Stores. Additionally, Target Corporation announced the sale of Mervyns to an investment group. During 2004, Target Stores expanded to 1308 stores and reached $46.8 billion USD in sales.

On January 9, 2008, CEO Bob Ulrich announced his retirement plans, and named Gregg Steinhafel to succeed him as CEO. Target requires its high ranking officers to retire by age 65. After Ulrich's retirement he remained the chairman of the board until the end of the 2008 fiscal year.

On March 4, 2009, Target expanded outside of the continental United States for the first time. Two stores were opened on the island of Oahu in Hawaii, along with two stores in Alaska. The opening of the Hawaii and Alaska stores leaves Vermont as the only state in which Target does not operate with a retail presence.

In June 2010, Target announced its charitable goal to donate $1 billion to education charities by 2015. Target School Library Makeovers is a featured program in this initiative.

In 2011, Target announced its first international expansion by acquiring the Zellers retail chain, at a cost of $1.8 billion dollars. Target Canada aims to have between 150 stores by 2014.

Principal Subsidiaries: The Associated Merchandising Corporation; Target Commercial Interiors, Inc; Financial and Retail Services; Target Sourcing Services; Target Brands.

Principal Divisions: Target Stores; Mervyn's; Marshall Field's; Target Financial Services; target.direct; CityTarget.

Principal Competitors: Wal-Mart Stores, Inc.; Kmart Corporation; J.C. Penney Corporation, Inc.; Sears, Roebuck and Co.; Federated Department Stores, Inc.; The May Department Stores Company; The TJX Companies, Inc.; Kohl's Corporation; Dillard's, Inc.; Nordstrom, Inc.; Saks Incorporated; Ross Stores, Inc.

Further Reading:

Apgar, Sally, "Dayton Hudson at Crossroads: CEO Ulrich Still Struggling to Jump-Start Mervyn's Stores," Minneapolis Star-Tribune, July 23, 1995, p. 1A.

Berner, Robert, "Dayton Hudson's Once-Fashionable Stores Tread Water," Wall Street Journal, August 1, 1996, p. B4.

Borden, Mark, "Shoppers Love Target, but Shareholders Are Seeing Red," Fortune, September 18, 2000, pp. 64, 68.

Branch, Shelly, "Hot Target Got Hot," Fortune, May 24, 1999, pp. 169-70, 172, 174.

Chakravarty, Subrata N., "Planning for the Upturn," Forbes, December 23, 1991, pp. 48+.

Chandler, Susan, "'Speed Is Life' at Dayton Hudson," Business Week, March 27, 1995, pp. 84-85.

------, "Under the Gun at Dayton Hudson," Business Week, May 20, 1996, pp. 66+.

Clark, Evan, "Is Target Cooling?: Slow Growth Feared at Hot Discounter," Women's Wear Daily, September 30, 2002, pp. 1+.

Conlin, Michelle, "Mass with Class," Forbes, January 11, 1999, pp. 50-51.

Dayton, George Draper, II, Our Story: With Histories of the Dayton, McDonald, and Winchell Families, Wayzata, Minn., 1987.

Facenda, Vanessa L., "Is Target Becoming Too Trendy?," Retail Merchandiser, December 2002, pp. 19+.

Gill, Penny, "Macke Maps Plan for Dayton Hudson," Stores, November 1991, pp. 28+.

Halverson, Richard, "Target Powers Dayton Hudson's Growth," Discount Stores News, June 19, 1995, pp. 21+.

Levy, Melissa, "An Old Firm, a New Name: Target Corp.," Minneapolis Star-Tribune, January 14, 2000, p. 1A.

Moore, Janet, "Dayton Hudson: Wall Street's Darling," Minneapolis Star-Tribune, March 15, 1998, p. 1A.

------, "The Store Formerly Known As Dayton's: Dayton's and Hudson's Department Stores to Use Marshall Field's Name," Minneapolis Star-Tribune, January 13, 2001, p. 1A.

Rowley, Laura, On Target: How the World's Hottest Retailer Hit a Bullseye, Hoboken, N.J.: Wiley, 2003.

St. Anthony, Neal, "Behind the Bull's-Eye: Bob Ulrich Transformed Target, but the Chain Still Faces Tough Competition," Minneapolis Star-Tribune, November 30, 2003, p. 1D.

Webber, Oscar, J.L. Hudson: The Man and the Store, New York: Newcomen Society in North America, 1954.

Source: International Directory of Company Histories, Vol.61. St. James Press, 2004.

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Address: Company Perspectives: Target Corporation is a growth company focused exclusively on general merchandise retailing. Our principal operating strategy is to provide exceptional value to American consumers through multiple retail formats ranging from upscale discount and moderate-priced to full-service department stores.

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Target company milestones and history timeline