Target is a popular U.S. retail and wholesale company providing a wide variety of goods and services. It was founded in 1902 as a chain of dry goods stores and has since grown into a retailer with locations in the United States, Canada, Mexico, Guam, and Puerto Rico.
While Target has certainly earned the reputation as a quality retailer, they’ve received numerous flak in the last year for their policies, particularly around race, immigration, and LGBT issues.
If you are interested in finding out more about the history of Target, read on to find out more about the company.
Target’s History Statistics
Founded in 1902, the Dayton Company opened the first-ever Target store, a discount version of Dayton’s department stores. This store soon spread along the East Coast, taking the name “Target” in the mid-1930s.
1. The First Target Store
George and his team of executives created a company of high quality and excellent service. Their reputation for excellence was such that Dayton Dry Goods became the most highly respected retail merchant in the US.
In the first year, the opening Target store offered only a few basics such as detergents and dishware. By the following year, Target began expanding the range of its merchandise and store size.
2. Organizational Milestone
Target achieved $1 billion in annual sales for the first time in 1979. This store opening included 74 locations across 11 different states, which helped the retailer gain significant national scale in its first few years of business.
By the early 1990s, Target had become the second largest chain of discount stores in the U.S, growing at a rate faster than the first. Target’s expansion to other parts of the Southeast U.S. was slow, with only a handful of new stores opening, including one in the Orlando area. The same year, a Target was also opened in Japan, serving only as a wholesale account for the Japanese operations of Target Canada.
Target currently runs 1,909 stores, 1 corporate head office, 5 additional offices across the nation, and 1 global capability center in Bangalore, India.
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4. Target Goes Digital
Target wanted to reach out to the consumers with a wide range of products. The Target.com website allowed customers to research products and order them easily from the comfort of their own homes. Target started to sell a wide selection of fashionable merchandise from jeans to dresses.
Target’s Market Share Statistics
Target dominated the market by maintaining 75% of the store count in the United States and having the highest market share. There is also evidence that they dominate the market in Australia, Canada, Ireland and the United Kingdom.
5. Target’s Yearly Growth
In the past 10 years, the U.S. has seen a steady incline in the number of shoppers, and there has been a rise in the number of shoppers in the last 10 years.
The fact that retail giant Target has seen $15 billion in sales growth in one year is impressive, but the company is also expanding into a wide range of other lines of business. It’s investing in robotics to better automate tasks and in real-time marketing to keep up with the changing demands of consumers.
It appears Target is back on track after its 2020 financial situation. Even more impressively, it is expected to produce nearly $94 billion in revenue by the end of 2021. This is a significant increase from its 2019 revenue of $78 billion.
6. Target’s Retail Losses
Target has had several leadership changes since Gregg Steinhafel took the chair as CEO, and with the economy getting worse, and the company struggling, Target decided to shut down most of its stores in Canada.
Despite a hazy future, Steinhafel successfully steered the business out of decline by using a successful marketing campaign, “Expect More, Pay Less.” In addition, Steinhafel rolled out store credit cards, offering customers a 5% discount with each purchase.
7. The Rise And Fall Of Target Market Shares
The retail giant has a solid reputation for being the primary spot to get items in a snap. It has also been gaining more and more acceptance in recent years, so you should be able to find a good store in your neighborhood.
And yet, despite all that, earnings were still in the green. So were revenues, as shoppers bought more items, including $400 million more worth of toys and electronics this holiday season.
8. Product Segment Sales Share
The sales share by product segment showed that “home and kitchen” products accounted for 26% of total sales. Food was the largest category across all of the segmentation, taking up 26% of the segment with a total sales of $1.3 billion.
Target’s Logistic Statistics
Efficient logistics is the cornerstone of every successful business. Target has a strong network of stores and distribution centers across the country. Here’s how Target supports customer demand.
9. Target’s Distribution Centers
Target operates 44 distribution centers built over an average of about 40 million square feet and functions in every state. The center in Fontana, California, is responsible for the greatest contribution to the company’s overall sales. It is estimated that 70 percent of Target’s annual revenues are generated from California shoppers alone.
10. Store-Based Fulfillment Centers
Target is not afraid to alter its business model. Their stores are becoming more and more fulfillment centers which makes it easier for them to supply their stores with the necessary inventory.
When a customer places a Target order, a Target employee will review the order. If the order is accurate, the employee will put the order in its right order. If not, the employee will put the order in the right order. If the order has any errors, the customer will be notified and told if Target cannot satisfy the order. If the customer is not satisfied with the order, the customer can return the order to any Target store and ask for a refund or a credit.
Target’s Nationwide Operation Statistics
Since it’s founding in 1902, the retail chain has been a leader in offering a wide variety of products. But it’s their commitment to their staff that has kept them at the forefront of retail.
11. Target’s International Ventures
The idea of Target Innovation is to accelerate the development and expansion of successful Target innovation labs in emerging markets around the world, like India, Germany and China.
The job will be to administrate Target global strategy across all businesses. It’s a job for a person to administer and organize the activities of the business. It also allows the job holder to make sure that Target follows up on the strategy that was developed by its senior executives. The job holder has to make sure that the senior executives follow up on the strategy that was developed.
12. Teaming Up With Starbucks
Target has become a trendy place to shop for both clothing and other accessories. Target has begun to attract a younger crowd, in particular those that live in urban centers across the country.
Starbucks has a great partner in their partnership with Target. The brand is targeting the upscale customers that are already interested in their products. As a result, Target is deemed more elite than other discount chains such as Walmart.
Target is now selling private labels under its own label, which is a smart move. It allows Target to focus on the products that they want to sell, and not worry about what their competitors are selling.
13. Target’s Private Label And Exclusive Brands In Full Swing
When you go to Target stores, you can expect to find a wide variety of privately labeled and exclusive brands. But that’s not the only competitive advantage that the company offers.
Target currently has 48 private labels in circulation. They make apparel, underwear, home features, pet products, groceries, seasonals, electronics, and swimwear.
Target offers private labels, and those labels are priced higher than the comparable products marketed by Wal-Mart or Costco due to the fact that Target can dictate pricing and the private label pricing is usually higher than Walmart’s and Costco’s so it will give them a little edge over the competition.
14. Agreement With CVS Health
If you have been following the retail market for some time now, you probably know that CVS Health acquired over 1,600 Target pharmacies across 47 states but continues to operate with store-in-store format.
CVS will buy $1.9 billion worth of Target stores, and Target will get to sell its own store brands, like CVS, inside stores that it will use to operate stores it already has.
Target’s Employee Statistics And Facts
* Target employees spend their time shopping for their families and friends. This activity accounts for about 30% of their total time.
* About 3/4 of Target’s U.S. employees say that they can work more effectively when they work from home.
* More than 1/4 of Target’s employees are parents — their number one priority is to provide a safe and supportive work environment for their families.
15. Number Of Target Employees
Target has seen an increased growth in employee numbers and more importantly, an increased growth in target shoppers throughout the year of 2018. The number of people purchasing at Target has risen by 10,000 by the end of 2018. Target’s employees work hard to achieve these results day in and day out and deserve a pay rise.
16. Employee Benefits
Target allows employees to have their own personal space, but also provides various benefits to help staff feel empowered and comfortable in the workplace. Target provides healthcare, dental, and vision benefits, along with 401(k) plans.
This store offers free benefits including free meals, free fruit, free health checks, sick pay, subsidized gym memberships, free employee assistance including a mental health hotline, cycle to work scheme, family and friend policies, financial well-being support, flu vaccination vouchers, and private medical insurance.
The company also offers benefits including, the ability to buy or sell extra holidays, childcare vouchers, and a 10% employee discount.
17. Target Employee Satisfaction
84% of employees announced that Target is a great place to work. 91% of people said that they felt welcome when they joined the team. 87% said their work environment felt like a family. An impressive 89% of workers said when they joined Target, their needs were taken into consideration.
Challenges Target Has Faced
Target has been at the center of a lot of controversy, from its security breaches to its closings. Here are some of the worst and best moments in Target’s history!
18. What Went Wrong With Target Canada?
Target is expanding and opening locations in Canada. They had their opening in Toronto in 2013. They quickly opened 132 stores within 2 years.
The store had not implemented a practical supply chain causing major inventory issues. Some items became overstock, in-demand items became under-stocked. Meanwhile, some locations had zero stock!
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In 2010, Target Canada was on its way out, following three years of losses to the tune of $1.2 billion. Target Canada’s board was in the process of closing all stores. By then, the company had only 7% of the retail market in Quebec, mostly concentrated in the big urban centres.
19. Competition From Amazon And Walmart
Walmart has had trouble competing with Amazon’s eCommerce juggernaut. The retail giant has been under pressure to lower prices and improve customer service.
These paraphrases are perfect for the context of a Q&A scenario.
The Q&A is a form of a question and answer interview in which the interviewer asks questions, and the interviewee answers. The interviewer’s questions can be as simple as ‘Tell me more about yourself’ or as complex as ‘Explain how you made that decision’. You should be able to easily paraphrase each question.
Walmart’s quarterly results were lower than what it has expected. It has taken losses due to higher tariffs, which have reduced its margins. It is losing more customers to Amazon and Target.
20. Target’s Data Breach
The hack in 2013 was a very bad experience for Targets. Hackers managed to steal details of more than 100 million customers and the company has now become more cautious to deal with cyber attacks. Hackers stole financial details such as full names, phone numbers, email addresses, payment card numbers, credit card verification codes and other sensitive information.
Target Corp. has agreed to pay a total of $18.5 million to settle claims that it failed to protect its customers’ credit and bank card information. The payments are the largest ever in a data-breach case.
Target’s Emerging Market Trends And Statistics
As a leading retailer in a new and emerging market, Target has shown resilience to changing consumer demands by modernizing its operations. Read on to find out its method.
21. Big Investments Into Small Stores
Many urban centers could benefit from Target because it is a large discount retailer and draws large amounts of traffic. As an example, Target has done a better job of reaching urban and suburban centers than the national retail industry, which has made it an important competitor to large national retail chains such as Walmart.
Retail giants such as Walmart are planning on opening thousands of small-scale stores around the country and plan to target cities instead of shopping malls. This move comes after they are no longer happy with the large-scale stores.
22. Ecommerce Focus
eCommerce has become one of the best sources of revenue for Target and there can be no doubt that eCommerce will continue to grow as an important sector of the company’s portfolio.
23. Modern Means Of Delivery
The main benefits are the fact that the customer is able to claim same-day delivery and also they are able to buy from many of the same brands they already prefer. However, it does not include in-store pickup. As you can see, Target has a huge inventory, so it is really important to have a system that allows for the efficient fulfillment of products.
Target facilitates to-pickup and to-store pick-up. With the app, people schedule their pickup and also schedule for store pick-up.
To learn more about the target market you can visit our post on the Target marketing plan.
Target’s success was driven by its ability to target a specific segment of the market. They are able to provide a greater selection in an affordable manner than smaller competitors. In addition to this, Target has been able to increase its market share at a higher rate than its competitors.
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