Target Corporation was founded in 1902 by George Dayton in Minneapolis, Minnesota. It was originally called “Dayton Dry Goods Company” and then later became Dayton Company in 1910. By 1962, Dayton Company opened its first discount store in Roseville, Minnesota by the name of “Target”. By 2000, all Dayton Hudson Corporations changed their name to Target Corporation. It opened three operating divisions including Target, Mervyn’s and the Department Store Division. In 2001, Target’s division generated about 80 percent of retail sales and operating income while Mervyn’s generated only 12 percent and the Department Store Division only generated 9% of sales therefore Target merged their e-commerce team and direct merchandising unit into one organization creating Target Corporation opening 74 new stores within the same year. Target’s operating strategy is built on providing great value to their consumers. They distinguish themselves from the competition by differentiating their inventory from other competing retail stores such as Wal-Mart and K-Mart. They are also known as being environmentally responsible. Target’s Corporation Associated Merchandising Corp. is a global sourcing organization that is involved with other souring companies to source goods to other parent companies.
Target has developed a very unique store personality since its inception to ensure that it is core targeted market is reached. Targets store image is designed to reach its “target” market that is understood to be a step above its competitors of Wal-Mart and Kmart. The typical target customer is 44 years old with an average household income of $54,000 per year with 80% being female and over half being college graduates. Target reaches this core market through a strategic and well analyzed store development and retail site selection process.
The Target real estate department identifies potential markets for new stores through an extensive search of analyzing population growth, existing...
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