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Target's Financial Analysis

725 Words3 Pages

Due to the business model of Walmart, in general, they continue to have lower expenses related to selling, general and administrative. Target has prided itself on the value they bring with exceptional customer service, with store that are basic, and only offer the bare necessities. Walmart however, focuses on its low cost offerings, and lacks in such service or décor. This shows in the financial statements where SG&A is 20.60% of sales revenue for Target, while Walmart brings costs down to approximately 18.75%. Walmart is able to operate with less employees working in the stores that have lower salaries, and lower expenses related to operating each store. For example, one detail that many might notice is Target’s stores are well lit compared …show more content…

While Target’s stock price was higher, when it continued to increase, Walmart’s stock price would increase, vice versa. They also followed the same trend as the S&P 500. However, it’s around 2004 where there is a change in that as Target’s stock price continued to rise, Walmart’s stock price declined and going against the S&P 500 trend. However, with the financial crises starting in 2007, Target’s stock prices declined rapidly resulting from a decline of sales revenue. During this time, Walmart’s stock price had an inverse relationship and grew continuously starting in 2007, once again, going against the trend of Target and S&P 500. This shows that when more families continued to struggle through the recession, they switched to Walmart, feeling they could get more value out of their money. While Target claims they have similar products to Walmart as the same price, the first instinct for individuals is usually to think about how Walmart is known for their good value. Target claimed that it started cutting prices to match Walmart on products that were available from both stores. For many individuals, this is something that could have been unknown. The upscale approach that Target takes in their business model clouds the judgment of the value they could be getting at

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Introduction Target Inc. is a multinational corporation that runs its operations in the United States of America. The area of specialization for the organization is retailing where it comes second after Walmart in running retail operations within the US. The organization has been in operation since 1902 where it was known as the Good Fellow Dry Goods. Over time, the organization has changed operations and tactics all that have seen it rebrand to Dayton's Dry Goods, and until recently, the organization rebranded to Target Corporation. The organization mainly runs its operations within the US through a given number of department stores chains which include Marshall Field's, Dayton's, and Hudson's as well as Mervyns'.

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The Target Corporation as it is known today grew out of a small dry goods store that is known for giving back. Target grew in a retail research company that then expanded into a commercial business. Target had grown out of the Dayton-Hudson Corporation and became its biggest source of revenue. When the company was renamed to Target its focus was on helping the environment and education and making sure they were giving back. With this company in partial its main focus today has not changed and with it being one of the top retailers in the United States they can really make the difference.

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Below is the income statement for Target Corporation in 2016 (in millions). Target 2016 Revenue 69,495 Cost of Goods Sold 48,872 Gross Profit 20,623 Gross Profit Margin 29.68% SG&A Expense 13,356 Depreciation & Amortization 2,298 Operating Income 4,969 Operating Margin 7.15% Non-operating Income -- Non-operating Expenses -- Income Before Taxes 3,965 Income Taxes 1,296 Net Income After Taxes 2,669 Continuing Operations 2,669 Discontinued Operations 68 Total Operations 2,737 Total Net Income 2,737 Net Profit Margin 3.94% Diluted EPS from Continuing Operations 4.58 Diluted EPS from Total Operations 4.7 Diluted EPS from Total Net Income 4.7 Dividends Per Share 2.32 The $5 million would be additional issued stock that is used to raise capital for major expansions of the company.

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However, to compete on price with Walmart and Amazon, Target announced price cuts on thousands of products. The result will undoubtedly be lower margins. Target stock is already suffering there, as operating margins got destroyed in the second quarters, falling to 6.8% from 7.7% on the

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Target Corporation is the second largest discount store retailer in the United States following Walmart. Target provides high-quality, trendy merchandise at logical prices. As of today, Target has more than 1800 retail stores and 38 distribution centers in the United States. The first official store was opened in 1962 in Roseville Minnesota and have thrived every since. I will be analyzing Target’s financial statements and communicating the results to our decision makers (Target 2017).

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Some people may wonder how, with such low prices, Wal-Mart can sustain such a large profit margin. Well according to Jim Hightower, that answer lies within Wal-Mart’s workforce. Hightower believes that Wal-Mart is tricking its workers into thinking they are, “one big, happy family,” when in reality those workers are being exploited. According to Jim, Wal-Mart is diverting their workers from the actual issues such as, “fair wages, hiring discrimination, or unionization.” This is backed up in the 2004 documentary aired by PBS called, “Is Wal-Mart Good for America?”

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Due to new technology and online purchasing, the way in which Target does business has changed dramatically. Consumers have changed their preferences on buying. Sitting on our couch and buying online while we watch our favorite T.V. show, is easier and cheaper than having

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Target Corporation (Target) is a well-known food item and retail store within the United States it has held the title of being the second largest retail store. They distinguish themselves from its competitors by offering upscale, fashion-conscious products at affordable prices, Target Corporation is one of the largest retailers in the United States as well as the second-largest discount retailer in the country, trailing behind Wal-Mart Stores, Inc. Target operates more than 1,750 stores located in 49 states (all except Vermont) and the District of Columbia. Most of these are general merchandise stores using a layout averaging 126,000 square feet. About 250 of the units operate under the name Super Target and are combined discount/grocery stores,

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Why Target Expansion in Canada Failed Scope, time, quality, and budget or cost is the main elements with which a successful project is defined and described. A project is said to have failed if it is not implemented to meet the planned parameters of scope, time, quality, and budget. There are myriad cases in which projects have failed because the project managers and project teams have failed to apply certain principles and practices of project management or have applied them incompetently. Target Expansion in Canada is an example of projects that failed because the project team did not apply certain principles of project management. Target ran a series of stores in Canada for quite a short period.

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After working in banking and real estate, native New Yorker, George D. Dayton decides to explore Midwest markets. Dayton notices Minneapolis offers some strongest opportunities for growth and so decides to purchase land on Nicollet Avenue and forms Dayton Dry Goods Company – today known as Target Corporation (“Target through the Years”). “Target Corporation is an upscale discount retailer that provides high-quality, on-trend merchandise at attractive prices in clean, spacious and customer friendly stores” (“Corporate Fact Sheet”). Today, target operates 1,829 stores in United States, which has enabled the company to grow to the top of the retail store market. It has implemented various techniques and strategies to constantly improve and ensure the effectiveness and efficiency of all operations (“Corporate Fact Sheet”).

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For the most part it?s a steal, since people can go on their daily Starbucks runs and also complete their shopping needs. Before shopping at target they would always say how much they even loved window shopping at target. She would always let me know what a wonderful and pleasant experience she always had at target which, of course, attracted me as a customer since I never rarely shopped at target until now. The more you shop at target you can be surprised

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Target shares took a 7% dive the next day, and the stock was stuck at this level for the rest of the month (Bylund). As consumer behavior shifts from traditional retail big box shopping to digital, companies like Target must evolve to meet these

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For decades now, Walmart has been one of the most successful retailers in America. Walmart has become a household name in nearly every house in the country, even outside of this country, because of their low prices and vast selection. But despite all the popularity that has been built up with Walmart, its impact on the American economy and society has been mostly negative. As being one of the biggest box stores in the world, Walmart has left a huge trail of destruction in the way they treat their workers, their customers, small businesses, and local communities. To start off, as the largest retailer in the U.S., Walmart has buying power which they use to negotiate lower prices from their suppliers.

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Target Corporation is one of the famous retail stores in the United States which is founded by George Dayton in 1902. Walmart is the main competitor to Target because these companies have similarities such as goods, services, business form, and customers. To compare Target to Walmart is logical because people can determine and analyze advantages and disadvantages in annual financial statement between Target and Walmart. Target and Walmart have different data on investment activities which are important to their companies. Investment activities are, uses necessary resources for operating of their companies which include computers, delivery trucks, furniture, buildings.

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2. Customers: As the recession hit, unemployment rose and people started becoming more responsible with money, the consumer priority changed. Since Target was known for style, fashionable in slightly higher price, in the end, they hurt themselves. Target should have done a lot better of a job in providing customer

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