Target Corporation
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- For the Australian department store chain, see Target (Australia).
Target Corporation (Template:Nyse) was founded in Minneapolis, Minnesota in 1962. It is the fifth largest retailer in the United States behind Wal-Mart, The Home Depot, Kroger and Costco,<ref>List of largest retailers in the United States. Note: this list separates the retailing divisions of Sears Holdings. - in .pdf format</ref> and is ranked 27th on the 2005 Fortune 500. It sells more gift cards than any other retailer in the United States and is also the third-largest seller of music in the United States.<ref>Top 10 Music Retailers in the United States.</ref>
Contents |
History
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The company's roots were founded in 1902 when George Dayton opened a retail store named Goodfellows in downtown Minneapolis. In 1903, the store changed its name to the Dayton Dry Goods Company, and it changed its name again to the Dayton Company in 1910. In 1956, The Dayton Company opened Southdale, the world's first fully-enclosed two-level shopping center in suburban Minneapolis.
In 1962, the Dayton Company entered discount merchandising by opening its first official Target discount store in Roseville, Minnesota, a suburb north of St. Paul. By 1979, it would be the company's top revenue producer. In 1967, the Dayton Corporation was established and it went public with its first offering of common stock. In 1969, the Dayton Company merged with the J.L. Hudson company. In 1978, the company acquired Mervyn's and becomes the 7th largest retailer in the United States. In late 1986 the company acquired Gemco from Lucky's and in 1990 it acquired Marshall Field's. Dayton Hudson Corporation changed its name to Target Corporation in 2000; by then, more than 75 percent of the corporation's revenue came from the Target division. In 2001, Target Corporation announced that its Dayton's and Hudson's stores would operate under the Marshall Field's brand. The three brands had been operating as a single unit, the Department Store Division.
On March 10, 2004, Target Corporation announced it had hired Goldman Sachs Group to analyze options for selling its Marshall Field's and Mervyn's chains of department stores. Three months later, on June 9, 2004, Target Corporation announced its sale of the Marshall Field's chain and several Mervyn's stores to St. Louis, Missouri-based May Department Stores Company, which became effective July 31, 2004. On July 21, 2004, it announced the sale of Mervyn's to an investment consortium including Sun Capital Partners, Inc., Cerberus Capital Management, L.P., Lubert-Adler/ Klaff and Partners, L.P., which was finalized September 2. In 2005, Federated Department Stores acquired May Department Stores and announced that by Fall of [[2006], it will eliminate the Marshall Field's name in favor of the Macy's nameplate.
Today, Target Corporation has its headquarters on Nicollet Mall in Minneapolis, near the site of the original Goodfellows store. It operates its main retail subsidiary, Target Stores, under the banner of 'Target'. The company owns several other subsidiaries, which include:
- Target Financial Services (TFS): issues Target's credit cards, known as the Target REDcard, consisting of the Target VISA and the Target Card (formerly the Target Guest Card), issued through Target National Bank (formerly Retailers National Bank). Target Financial Services also oversees GiftCard balances (see GiftCards section below).
- Target Sourcing Services / Associated Merchandising Corporation (TSS/AMC): This global sourcing organization locates merchandise from around the world for Target and helps import the merchandise to the United States. Such merchandise include garments, furniture, bedding, and towels. TSS/AMC has 27 full-service offices, 48 quality-control offices, and seven commissionaires located throughout the world. TSS/AMC employs 1,200 people. Its engineers are responsible for evaluating the factories that do business with Target Corporation for quality, as well as labor rights and transshipment issues.<ref>Target Corp's Vendor Compliance</ref>
- Target Commercial Interiors: provides design-services and furniture for office space. Currently, Target Commercial Interiors has an unusually high market share of Fortune 500/1000 business customers, and are expanding to attract small to medium sized businesses, as well as home offices. This subsidiary has six showrooms in Illinois, Minnesota, and Wisconsin, including a first-of-its-kind retail concept store and showroom in Bloomington, Minnesota that opened on June 23, 2005.
- Target Brands: owns and oversees the company's private label products, including the grocery brands Archer Farms and Market Pantry. In addition, Bullseye Dog is a trademark, and the Bullseye Design and 'Target' are registered trademarks of Target Brands.
- target.direct: owns and oversees the company's e-commerce initiatives, such as the Target.com domain. Founded in early 2000, target.direct is a combination of the company's e-commerce team and its direct merchandising unit into a single, integrated organization. In 2002, target.direct and Amazon.com created a partnership where Amazon.com would provide order fulfillment and guest services for Target.com, and to this day Target Corporation's e-commerce website still uses Amazon.com's e-commerce system.<ref>News Article detailing partnership between Target and Amazon.com</ref>
Retailing division: Target Stores
Target Corporation's discount retail chain in the United States has 1,418 stores in all states except for Alaska, Vermont, and Hawaii that operate under the mastheads of Target, Target Greatland, and SuperTarget. The company "clearly wants to open a store on Oahu, Hawaii". The first Target store opened in 1962 in Roseville, Minnesota. That store was closed and demolished on January 8, 2005 to make room for a SuperTarget. Target Corporation has aggressive plans to have 2,010 stores open by the year 2010.<ref name=factcard>Target Corporation Facts as of April 6, 2006 - in .pdf format</ref><ref>Target plans expansion to Hawaii</ref>
Target
Target stores are generally 95,000 to 125,000 square feet (12,000 m²) and carry hardlines ("normal" products and goods), softlines (clothing), and a limited amount of groceries, usually non-perishable. Specifically, Target stores carry clothing, shoes, jewelry, health and beauty products, electronics, compact discs, DVD's, bedding, kitchen supplies, sporting goods, toys, pet supplies, automotive supplies, hardware supplies, and food. They also carry seasonal merchandise such as patio furniture during the summer and Christmas decorations during November and December. Many stores may also have one-hour photo processing, a portrait studio, an optical store, and a pharmacy. Many stores in the southern states also include a garden center. Stores opened and remodeled in 2004 or later also include the expanded snack bar that is featured in Target Greatland locations. These generally include a Starbucks and a Pizza Hut Express in addition to Target's Food Avenue.
In the past, the one-hour photo processing labs were not owned by Target, but by Qualex, a subsidiary of Eastman Kodak and were staffed by employees of Qualex, not Target. However, in June 2005, Target spokeswoman Brie Heath announced that Target Corporation will replace the Qualex photo labs with their own labs running Kodak equipment, and will staff them with Target employees. Unlike the previous Qualex labs, all photo processing is done "in house", including next-day, digital, and Kodak Perfect Touch processing, although a few labs have been replaced with "send-out" only service with a self-service Kodak Picture Maker kiosk. A select number of "test" stores are running with Fujifilm equipment instead of Kodak. <ref>News Article stating that Target Corp. will take over kiosks operated by Qualex</ref>. Target has also partnered with Yahoo! Photos for online photo services, including ordering prints online for one-hour store pickup.
Target Greatland
Image:Target greatland 1917.jpg
Target Greatland stores average about 150,000 square feet (14,000 m²) and carry a larger selection of general merchandise than basic Target stores. In the summer of 2005 they reorganized the sales floor allowing them to double the grocery space they had before. However, they do not have a full line of groceries. Prominent features include double entrances on single level stores along with an expanded snack bar. The snack bar may include a Pizza Hut Express, Taco Bell Express, and/or a Starbucks. The construction of new Target Greatland stores are being phased out in favor of prototype more similar to their standard stores.
The first Target Greatland opened in Apple Valley, Minnesota in 1990 and has since been remodeled and expanded, becoming a SuperTarget.
SuperTarget
SuperTargets are Target's version of a hypermarket. They are about 175,000 square feet (16,000 m²). Like Target Greatlands, SuperTargets feature double entrances on one story stores; some also have between the double entrances a merchandise loading lane as a prominent feature of the building. They carry everything a Target or a Target Greatland does in addition to a grocery store, including produce, deli, meats, liquor, and baked goods. Many SuperTargets also feature a Starbucks Coffee shop, a Pizza Hut Express, a Wells Fargo Bank, portrait studio, and an optical store. Unlike many other hypermarkets in the United States, such as Wal-Mart Supercenters, SuperTargets are not continuously open.
The first SuperTarget opened in Omaha, Nebraska in 1995, and the second SuperTarget opened in Lawrence, Kansas later that same year. Currently, Target operates 159 SuperTarget stores in 21 states.<ref name=factcard/><ref>Target Corp. Timeline - in .pdf format</ref>
In the past, some SuperTargets featured an E*TRADE trading station instead of a Wells Fargo Bank. However, in June 2003, E*TRADE decided to remove all E*TRADE branches from their SuperTarget locations <ref>News Article detailing E*TRADE's withdrawal from SuperTarget locations</ref> without advance notice. This sudden move was not initiated by Target Corporation. Mitchell Caplan, E*TRADE's CEO, said that "We were not able to make it into a profitable distribution channel...[w]e're better off exiting." E*TRADE also sent a letter of notification to their customers informing them about this change.
Urban stores
There are about 30 multi-level stores in urban areas, where a one-level Target is not practical. One unique feature used by these stores is a specialized escalator, called a Vermaport, used to transport shopping carts between levels. This concept has also been used to build Targets from former Montgomery Ward and Younkers stores.
While many Target stores share a fairly common big-box store layout, the company has been known to be flexible with its designs. For example, the urban Target store located in Nicollet Mall opened on October 10, 2001, only two blocks away from the site of the 1902 Goodfellows store and a few blocks away from the Target Center arena. This particular Target store features a three-story glass entrance and a design that sets it apart from suburban Target stores. This urban store alone cost Target Corporation $16.3 million USD and the city of Minneapolis $59.9 million USD to develop. Similar urban Target stores with their own unique designs exist in Pasadena, California,Template:Uncited between Lenox Square and Phipps Plaza in Atlanta, Georgia,Template:Uncited The Gateway Center in West Hollywood, California,<ref>http://www.jerde.com/projects/project.php?id=104</ref> Stamford, Connecticut, and the Atlantic Terminal Mall in Brooklyn, New York City, New York.<ref>Details on urban Target stores in Minneapolis, Minnesota, Brooklyn, New York City, New York, Stamford, Connecticut</ref>
A bi-level Target has also been built into the Mall 205 in the Gateway District of Portland, Oregon. This is of special note since Mall 205 is a "suburban" style mall, NOT located in a particularly high density area, although both the mall and the district are slated for higher density, infill development.Template:Uncited
Distribution centers
Target Corporation currently operates 23 distribution centers across the United States. With the exception of vendor supplied items, such as greeting cards and soda, these distribution centers ship items directly to Target stores. Also, unlike Wal-Mart, Target's grocery selection does not come from their own distribution centers, but from the companies that Target has partnered up with. For example, the produce carried in SuperTargets comes from Supervalu distribution centers.<ref name=factcard/><ref name=rowley>Rowley, Laura (2003) On Target: How the World's Hottest Retailer Hit a Bull's-eye John Wiley & Sons; Hoboken, New Jersey. ISBN 0-471-25067-8.</ref>
On August 9, 2004, Target announced to their suppliers that they were going to perform a trial on the effects of radio frequency identification on the efficiency of supply chain management in the Dallas/Fort Worth Metroplex. This trial involved one Target distribution center and ten nearby Target stores. Here, RFID tags would be placed on the bar codes of pallets and cartons to track the goods from the suppliers to the distribution center, and from the distribution center to the stores.<ref>News Article detailing Target's use of RFID</ref>
Differentiation
Target stores intend to differentiate themselves from their competitors like Kmart and Wal-Mart by offering what they believe is more upscale, trend-forward merchandise. As a result, Target stores tend to attract younger and more educated and affluent customers than its competitors. The median Target shopper is 46 years old, which is the youngest of all major discount retailers that Target competes directly against. The median household income of Target's customer base is roughly $55,000 USD. Roughly eighty percent of Target customers are female, and about 38 percent have children at home. About eighty percent have attended college and 43 percent have completed college.<ref name=factcard/>
Target refers to itself as a "discount department store" instead of just a discount store. Target stores do not play ambient music, commonly known as elevator music and often distributed by Muzak. However, several Target stores feature a Starbucks, and those that do play music only in the Starbucks centers. It also does not promote items or services through its public address system. Target designs its stores to be more attractive than Wal-Mart by having wider aisles, drop ceilings, a more attractive presentation of merchandise and generally cleaner fixtures. Target stores do not sell firearms or tobacco. Unlike Wal-Mart, however, it does sell "explicit" CDs and "racy" magazines such as Maxim and FHM.
Target has many exclusive deals with various designers, including Isaac Mizrahi, Michael Graves, Mossimo, Fiorucci, Liz Lange, and Luella, among others. Target introduced its first designer line of products, the Michael Graves collection, in 1999. Wal-Mart and Kmart have followed Target's lead by signing exclusive designers to their stores as well. Target also partners with well-established national brands to create exclusive collections for its stores. Recently, Sony created a line of electronics under the Sony LIV name geared towards women. The collection included a CD player that resembled a purse, and a CD player that was equipped to be mounted under the kitchen counter. Another example of this is Target having an exclusive deal with Food Network for selling DVDs of TV shows featuring popular chefs such as Rachel Ray, Alton Brown, and Paula Deen. Sometimes manufacturers will create red-colored items, exclusively for Target. In 2002, Nintendo produced a red special edition variant of the Game Boy Advance, which featured the Target logo below the screen.
Target calls its customers "guests", its employees "team members", and its supervisors as "team leaders." It derived this practice in the early-1990s from The Walt Disney Company.
Many of Target's biggest fans jokingly refer to a Target store as "Tar-zhay" or Targé (Tar-jé) (IPA: Template:IPA), as though it were a French word, a reference to its more upscale image compared to its competitors. This trend is incorrectly believed to have been started by Oprah Winfrey, when she used the French pronunciation to refer to the store on her television show. This contradicts with Laura Rowley's book, On Target, which traces the pronunciation back to 1962, the year the first Target opened. This pronunciation has also led some people to incorrectly believe that the company is French-owned.<ref name=rowley/>
GiftCards
The Target GiftCard is the retailing division's stored-value card or gift card. Target sells more gift cards than any other retailer in the United States, and as of December 21, 2005, the most in the world. The unique designs of their cards contribute to their higher sales. Past and current designs include "scratch and sniff" (such as peppermint during the Christmas season), glow in the dark, LED light-up, a gift card that can function as a CD-ROM, and even a giftcard that allows the sender to record a voice message. A current environmentally friendly giftcard is made from bioplastic manufactured from corn.<ref>Target's Bioplastic Gift Card</ref>
Many of these design ideas are not used by any other retailer in the United States other than by Target Corporation. It is noted that some of these unique design ideas are patented, and these patents are assigned to the Target Brands subsidiary. For example, some such Target GiftCard designs feature a wooden front side. The United States Patent and Trademark Office has granted Template:US patent for the "ornamental design for a credit or stored value card with wood layer" to the inventors Amy L. Lauer and John D. Mayhew. Template:US patent for the "stored-value card assembly including a stored-value card, an edible product, and a wrapper" has also been granted to Michael R. Francis and Barry C. Brooks. Both of these patents have been assigned to Target Brands, Inc.
ClearRx
In 2005, Target introduced a major revision of prescription bottles, which it calls the ClearRx system. The redesigned bottles are flattened-out and turned upside down, providing more room for label. This system, invented by student Deborah Adler, was named one of Time Magazine's Most Amazing Inventions of 2005.<ref>Time's Most Amazing Inventions of 2005</ref>
Philanthropy
Target Corporation is consistently ranked as one of the most philanthropic companies in the country. According to a November 2005 Forbes article, it ranked as the highest cash giving company in America in percentage of income given (2.1%)<ref>The Most Charitable Companies - forbes.com</ref>. Target donates around five percent of their pre-tax operating profit; it gives over $2 million a week in the communities it operates in. It also gives a percentage of charges from its Target Visa to schools designated by the cardholders. To date, Target has given over $150 million to schools across the United States through this program.
Target has a standard no-solicitation rule at its properties, as it wishes to provide a "distraction-free shopping experience for its guests." Exemptions to this policy were previously made for the Salvation Army to station its traditional red kettles and bell-ringers outside Target stores during the Christmas season. However, the company decided that it would no longer allow the Salvation Army to solicit on Target Stores' properties in 2004 because they believed it was a distraction to their guests and because an increasing number of other nonprofit groups also wanted to be granted exceptions to the "no solicitation" policy to support charity.<ref>News Article detailing the Target/Salvation Army Wish List</ref> Many religious organizations objected to this decision, and called for boycotts of Target; however, this has failed as Target's financials over the last year have been setting company records and Target's same-store sales have been outperforming Wal-Mart. Additionally, when Target ousted the Salvation Army bell ringers, Target Corporation said that they planned on seeking an alternate method to donate to the organization. For example, Target donates annually to the United Way (the Salvation Army is a member of the United Way coalition).
On November 14, 2005, Target Corporation and the Salvation Army announced <ref>Salvation Army announces partnership with Target Corporation</ref> a partnership called "The Target/Salvation Army Wish List," where online shoppers could donate goods to the organization by buying them directly from Target.com <ref>Target.com's Salvation Army donation page. Note: Viewable between November 25, 2005 and January 25, 2006</ref> between November 25, 2005 and January 25, 2006. With this partnership, Target guaranteed a minimum of $1 million of merchandise to the Salvation Army, making up the difference if the customers couldn't reach this goal, although the Salvation Army claimed that they typically raised $9 million with the red kettle program in front of Target stores. Annette Bauer, a spokeswoman for the Salvation Army's northern division, said "It is not going to make up the financial difference...but it is a great opportunity to partner with Target that might lead to other opportunities."
During disasters, Target Corporation is a major benefactor for relief efforts. Target provided monetary and product donations during the September 11th terrorist attacks on the U.S.; it also donated money for relief efforts for the tsunami in South Asia. Most recently, Target donated $1.5 million (U.S.) to the American Red Cross in the aftermath of Hurricane Katrina in 2005. It also allowed its store properties in the affected area to be used as command centers for relief organizations. It also donated supplies such as water and bug spray. Besides these major disasters, Target also regularly lends its support to disasters that are not as well known or only affect a regional area.
Target Forensic Services
In 2006, the media revealed that Target is operating a sophisticated criminal forensics laboratory in their headquarters. Originally, the lab was created as an internal need for the company to investigate instances of theft and fraud and other criminal actions that occurred on its own properties. Eventually, the company began offering pro bono services to law enforcement agencies across the country. Target's Forensic Services has assisted agencies at all levels of government, including Federal agencies such as the Secret Service, Bureau of Alcohol, Tobacco and Firearms and the Federal Bureau of Investigation. The lab has become such a popular resource for law enforcement that Target has had to restrict the cases it assists in to only violent felonies.<ref>Retailer Target Branches Out into Police Work</ref><ref> CNN Blog on Target's Crime Lab</ref>
The lab is reported to be extremely sophisticated, and in one case, Target was able to successfully repair a tape that not even NASA could repair.
Some critics worry that Target and other companies that provide these types of favors for governmental agencies may receive unfair advantages or use their philanthropy to get company special treatment from the government.
Criticism
Like many other large businesses and corporations, Target Corporation faces criticism. Much negative publicity was generated from the company's decision to no longer allow the Salvation Army to collect donations at its stores (see Philanthropy section above).
Target allegedly engages in many practices that rival Wal-Mart faces criticism for engaging in; however, because of Target's smaller size in comparison to Wal-Mart, Target often escapes criticism. In addition, many people may overlook Target's practices because of its successful marketing to differentiate itself as being more upscale. Practices that some might deem as questionable include: low hourly wages (lack of a so-called living wage), opposition to labor unions, and its contribution to urban sprawl.<ref>CNN/Money: Can't touch "Teflon" Target</ref> Liza Featherstone, author of Selling Women Short: The Landmark Battle for Workers' Rights at Wal-Mart, stated in an interview, "Aesthetically, we all like Target better, but their wages are in many places low or just as low, and they all represent the Wal-Martization of our economy, which is the exchange of low prices for poor work conditions." <ref>Interview with Liza Featherstone</ref>
In 2002, the company came under criticism for carrying clothing with the number "88" embroidered on the clothing, which is known to be a white supremacist symbol. Target came under fire not necessarily for carrying the merchandise, but for their response. A customer informed the company of the offensive merchandise, but Target only responded with form letters and seemed to dismiss the customer's concerns. Only after the Southern Poverty Law Center and the media got involved, did Target pull the merchandise from its stores.<ref>News Article detailing "88" controversy</ref>
A 26-year-old Missouri woman was refused emergency contraception when she handed her prescription to a pharmacist at a Target store in Fenton, Missouri, on September 30, 2005. The woman was told by the pharmacist, “I won’t fill it. It’s my right not to fill it.” She was told that she could go to a local Walgreens instead. The woman said, “When the pharmacist told me she wouldn't [fill the prescription], I went from disbelief to shock to anger. I guess I'm still pretty angry. It seems unbelievable to me that a medical professional could/would deny access to a federally approved drug and impose their personal beliefs in a professional setting. I am also grateful that I did not need it filled at that time. I don't know how it would be if I had just been raped or if the condom broke and I was feeling confusion and panic anyway -- and then was denied access and told to go across the street.”<ref>Target Pharmacist Refuses to Fill Emergency Contraception Prescription</ref> Target holds a conscience clause that allows employees to refuse to dispense medication based on religious beliefs; however, the employee must ensure that the prescription is filled by another pharmacist in a timely manner. Some defending Target would applaud the company for upholding the employee's freedom of conscience, while others feel this policy is a violation of customer rights.
Target has recently come under fire for firing 39-year-old pharmacist Heather Williams, who based on her religious beliefs could not in good conscience refer a customer to one of the other Target Stores that would dispense the Emergency Contraceptives as stated in their conscience clause.<ref>News article detailing former Target pharmacist being fired after refusing to dispense abortion pill</ref><ref>News article detailing the Missouri House of Representative's proposed Health Care Rights of Conscience Act</ref>
Target Australia
Image:100% Happy.PNG Template:Main
There is also a Target operating as a department store under a nearly identical logo and a similar style in Australia with over 250 stores. The brand in Australia is owned by Coles Myer, which holds the rights from Target Corporation to use the Target name in Australia. Target Corporation has never operated stores outside of the United States.<ref>Overview of Coles Myer Ltd.</ref>
The Target Australia logo is nearly identical to the U.S. Target logo, the difference being the lack of capitalization of the letters and a period at the end. They may also add their slogan "100% Happy" below it.
Diversity
Target embraces diversity among its employees under a program called "The Power of One". It is Target's belief that diverse backgrounds bring together many different experiences and pieces of knowledge to create a stronger company.<ref>Target Diversity Page</ref> It specifically seeks to work with vendors and contractors that are minority-owned or owned by women.<ref>Target Corporation document on its Minority & Women Business Development program</ref>
It is has long extended domestic partner benefits to straight, gay, and lesbian employees. It has received an 86 on the Human Rights Campaign Corporate Equality Index Score. <ref>Human Rights Campaign Target page</ref> In addition, Target Corporation was named one of the "100 Best Companies for Working Mothers" in 2004 by Working Mother magazine.
Despite Target's stated commitment to diversity, the National Association for the Advancement of Colored People has repeatedly given Target failing grades on its annual Economic Recioprtiy Initiative report card, a measure of the company's "commitment to the African-American citizenry". In 2003 and 2005, the NAACP has rated Target an "F" on this report; in 2004, Target was rated a "D-". In contrast, Wal-Mart, which scored higher than all of the other retailers on the report for 2003 and 2004, was given a "C+" for both of those years.<ref>NAACP General Merchandising Industry Report Card for 2004 and 2005</ref>
Major sponsorships
Target owns the naming rights to the Target Center in Minneapolis. It also sponsors NASCAR and Indy Car racing teams of Chip Ganassi Racing.
Target Corporation is also a major sponsor of the annual Minneapolis Aquatennial. It hosts the Target Fireworks Show, which is the largest annual fireworks show west of the Mississippi River, and the fourth largest annual fireworks show in the United States.
Target also sponsors the Museum of Modern Art in Manhattan, New York. It hosts Target Free Friday Nights, providing to all visitors free admission to the museum during Fridays after 4 p.m. A similar Target-sponsored program at the Los Angeles County Museum of Art called "Free after Five" provides free admission in the evening throughout the week.
Trivia
- Some Target stores have a bullseye painted on the roof as can be seen by using a program such as Google Earth or Microsoft Live Local.