Target Corporation Research Paper

TARGET CORP

Target Corporation, incorporated on February 11, 1902, is engaged in providing everyday essentials and fashionable, and differentiated merchandise at discounted prices. The Company offers its products through stores, online or through mobile devices. The Company sells an assortment of general merchandise and food through its store and digital channels. Its general merchandise stores offer an edited food assortment, including perishables, dry grocery, dairy and frozen items. Its digital channels include an assortment of general merchandise, including various items found in its stores, along with a complementary assortment, such as additional sizes and colors sold online. It also sells merchandise through partnerships and generates

Since its founding, it has intended to differentiate its stores from its competitors by offering what it believes is more upscale, trend-forward merchandise at lower costs, rather than the traditional concept of focusing on low-priced goods. Douglas J. Dayton, one of the Dayton brothers, explained John Geisse's concept:

“We will offer high-quality merchandise at low margins, because we are cutting expenses. We would much rather do this than trumpet dramatic price cuts on cheap merchandise."

As a result, Target stores tend to attract younger customers than Walmart, among other competitors. The median Target shopper is 41, the youngest of all major discount retailers that Target competes directly against. The median household income of Target's customer base is roughly $63,000. Roughly 76% of Target customers are female, and more than 45% have children at home. About 80% have attended college and 48% have completed college. 97% of American consumers recognize the Target Bull’s-eye

Target sells more gift cards than any other retailer in the United States and is one of the top sellers, by dollars and units, in the world. The unique designs of their cards contribute to their higher sales, as well as Target's policy of no expiration dates or service fees. Beginning in January 2010, Target Stores rolled out Mobile Gift Cards, through which one can produce a Gift Card barcode on any web-capable cell phone.

Financials

Target’s Total revenue is gradually increasing and is $72 billion in 2014 FY. Target's retail stores generally record revenue at the point of sale. Digital channel sales include shipping revenue and are recorded upon delivery to the guest. Total revenues do not include sales tax because Target is a pass-through conduit for collecting and remitting sales taxes.

A data breach in 2013 affected its profit margin stock prices and reputation. Stock prices fell down by 54% in 2008 FY, Because it is depending largely on debt. Falling from $61 in2007 to $28.31 in 2008, it recovered slowly from 2009to 2

Future

With rising trend of ecommerce business, there is huge potential for the company to increase its profitability through its online