April 22, 2012
Week 9 - Target Corporation's Financial Health
Target Corporation was founded in 1902 by George Dayton, a banker and real estate investor, the original name was Dayton Dry Goods Company, later in 1911 becoming Dayton Department Store, and in 1962 becoming Target a discount chain store. Target and its iconic red bulls-eye, named because it is a marksman’s goal to hit the center mark, much as it was Target’s goal to do the same in terms of retail goods, services, community commitment, price, value, and overall experience (Target.Com, 2012). 1967 saw Target grow from a regional department store to national retailer. In 2009 Target expanded into the fresh food market nationwide, and in 2012 is celebrating its 50th anniversary; even after 50 years Target is still committed to its original values and the bulls-eye symbol. Target has used innovative marketing strategy and teamed up with several high-end designers to offer affordable collections on a short-term basis to the masses, and has installed many Starbucks within their stores. Graves Design, Isaac Mizrahi, and Missoni are a few of the designers that have partnered with Target. Having a Starbucks inside the store seems to attract many customers who want to get a coffee and shop all at the same time. Target also offers its own brand of up-scale sundries marketed under the Up and Up brand. Target has a market presence which appeals too many middle class Americans looking to get the most value for their money. Target’s 2012 income statement reveals that there was an increase in revenue of 3.7% over 2011 along with increases in cost of goods sold and selling, general, and administrative expenses; even after the increases Target still increased its net earnings by .3% over 2011. Expansion is the main reason target had increases in selling, general, and administrative expenses and depreciation and amortization...