22.2 C
New York
Monday, August 23, 2021

Target Corporation Research Report

About Company

Target is a US-based retail corporation. The headquarters of the company is situated in Minneapolis, Minnesota. At present, it holds the position of the eighth biggest retailing company in America and is also a part of the Standard & Poor 500 Index.

Target Corporation came into existence in 1962 and it was launched as the discount segment of the Dayton’s Company in Minneapolis, Minnesota. 

During the 80s, it started growing the outlets across the country in the form of a segment of the Dayton-Hudson Corporation and launched new outlet setups under the brand name Target during the 90s.

Target Corporation has attained success by positioning itself as an affordable-stylish competitor in the retail sector.

In 2000, the holding company changed its name to Target Corporation. In 2004, it also dissociated itself from its last departmental outlet chains.

Target sustained substantial losses from a huge and significantly broadcasted customer credit card data security violation. As a result, Target Canada, its transient subsidiary company in Canada, broke down miserably in the beginning phase of the 2010s. However, the retail giant eventually witnessed rejuvenated accomplishment with its growth in metropolitan markets inside the United States.

As of 2019, the company ran 1,844 outlets across the United States. On the Fortune 500 rankings of the biggest US corporations in terms of overall revenue, Target Corporation enjoyed the 37th rank in 2020.

The stocks of Target Corporation are traded on the New York Stock Exchange (NYSE) and its stock ticker symbol is TGT. TGT has been a component of both the S&P 500 and S&P 100 indices.

Retail setups of Target Corporation 

The retail setups of Target Corporation incorporate the following:

  • SuperTarget (the hypermarket) 
  • Target (discount store) 
  • “Small-size” outlets, earlier known as TargetExpress and CityTarget ahead of being merged under the brand name Target. 

Products and services of Target Corporation

The products and services of Target Corporation can be elaborately categorized into the following:

  • Health and beauty products 
  • Accessories and clothing
  • Bedding 
  • Food items
  • Electronics goods
  • Housewares 
  • Furniture and fixtures
  • Garden and lawn
  • Jewelry 
  • Footwear 
  • Pet supplies 
  • Games/toys

Subsidiaries and brands:

The subsidiaries of Target Corporation are

  • Target Capital Corporation 
  • Target Brands, Inc. 
  • Target General Merchandise, Inc.
  • Target Enterprise, Inc. 

Private Label Brands

The brand management segment of the company is Target Brands and it supervises the private-label goods of the company. Furthermore, the symbol of Target Corporation is the Bullseye Dog. 

  • Archer Farms – It is an up-market foodstuff store 
  • Good & Gather – It is a food and beverage brand that is substituting Simply Balanced and Archer Farms.
  • Simply Balanced – Sells organic foodstuff 
  • Market Pantry – Economy foodstuff store 
  • Boots & Barkley – It is a pet food and distribution line
  • Sutton & Dodge – It is a superior-quality meat line
  • Room Essentials – It is an affordable home-products line
  • Embark – It is an outdoor equipment and clothing line for tour and camping 
  • Hyde and Eek – It is a popular brand for Halloween embellishment 
  • Threshold – It is a high-quality furniture line
  • Up & up – Target delivered a reintroduction of the brand Target in the form of up&up to incorporate an elaborated product range and a fresh layout. The brand called up & up provides necessary goods, such as healthcare, household, baby, beauty, as well as personal-care merchandise.
  • Fieldcrest – It is a  bath and bedding line in collaboration with Iconix Brand Group, the proprietor of the brand 
  • Xhilaration – It is a product line of nightwear and intimate wear.

Other private labels from Target Corporation incorporate brands introduced in 2016 July, throughout back-to-school sales events.

  • Goodfellow & Co. – A personal-care and apparel line for men and the name is a tribute to their origins as Goodfellow Dry Goods
  • Cat and Jack – It is a kid’s line of add-ons and attire
  • Pillowfort – It is a kid’s bedding line 
  • Cloud Island – It is a kid’s line of attire and bedding 
  • JoyLab – It is a fitness-apparel line for women
  • Project 62 – It is a household-commodities line positioned beside Room Essentials
  • A New Day – It is an apparel line for women
  • Hearth and Hand – It is a home and lifestyle brand in partnership with Joanna Gaines, a famous interior designer 

Once they were introduced, the bedding and apparel brands were tremendously successful and garnered instant popularity. Target managers assert that the novel brands raised sales to the tune of $1 billion and enhanced 15% of income, just throughout the 1st year.

In 2018, eight private-label brands of Target were introduced:

  • Opalhouse – It is a storehouse of assorted home décor items 
  • Universal Thread – It’s a lifestyle brand, mainly focusing on denim 
  • Original Use – A men’s apparel brand aiming at millennials and generation Z
  • Heyday – An electronic equipment line  
  • Made By Design – It is a homeliness brand, comprised of home fundamentals like cookware, towels, dishes, glassware, kitchen devices, containers, and so on
  • Wild Fable – It is a ladies apparel brand aiming at generation Z
  • Smartly –  Basically, it is a product brand, consisting of healthcare, household, personal care, and beauty products
  • Prologue  – It is an urbane women apparel line 

Furthermore, Target lately launched three fresh sleepwear, loungewear, and intimates brands for ladies on 25th February 2019.

  • Auden – A fashionable lingerie and intimates brand
  • Colsie – It is a loungewear and intimates brand
  • Stars Above – It is a home brand for nightwear

On 9th January 2020, Target made a declaration about its new athletic wear brand with the name All In Motion. It is a fashionable athletic workout apparel line with goods for all genders and age groups.

On 9th March 2021, Target publicized a fresh brand known as Favorite Day. It markets refreshments, bakery, high-quality ice cream, candies, beverage mixers, cake decorating provisions, and mocktails stuff. It came into existence on 5th April 2021.

Presence of Target Corporation 

Target Corporation has its sole presence in the United States of America. In 2020, it had around 1904 outlets throughout the country.

Corporate Headquarters – Target Plaza, 1000 Nicollet Mall, Minneapolis, Minnesota, U.S.

Distribution hubs

The distribution hubs of Target Corporation are located in the following areas:

Distribution hub Location  Type
T-580 Madison, Alabama Regional
T-588 Phoenix, Arizona Regional
T-9478 Tucson, Arizona E-Commerce Fulfillment
T-0553 Fontana, California Regional
T-9479 Ontario, California E-Commerce Fulfillment
T-3806 Rialto, California Regional
T-3807 Rialto, California Import
T-3899 Rialto, California Food
T-0593 Shafter, California Regional
T-0555 Woodland, California Regional
T-0554 Pueblo, Colorado Regional
T-3892 Lake City, Florida Food
T-3808 Midway, Georgia Regional
T-3810 Savannah, Georgia Import
T-0556 Tifton, Georgia Regional
T-3809 DeKalb, Illinois Regional
Indianapolis, Indiana Central returns
T-0559 Indianapolis, Indiana Regional
T-0590 Cedar Falls, Iowa Regional
T-3895 Cedar Falls, Iowa Food
T-3803 Topeka, Kansas Regional
T-0587 Galesburg, Michigan Regional
T-0551 Fridley, Minnesota Regional
T-9407 Woodbury, Minnesota E-Commerce Fulfillment
T-3844 Perth Amboy, New Jersey E-Commerce Fulfillment
T-3802 Amsterdam, New York Regional
T-0579 Wilton, New York Regional
T-3811 Newton, North Carolina Regional
T-3880 West Jefferson, Ohio Food
T-3804 West Jefferson, Ohio Regional
T-0558 Albany, Oregon Regional
T-0589 Chambersburg, Pennsylvania Regional
York, Pennsylvania E-Commerce Fulfillment
T-0594 Lugoff, South Carolina Regional
T-3897 Denton, Texas Food
T-3801 Midlothian, Texas Regional
T-3801 Tyler, Texas Regional
T-0560 Stuarts Draft, Virginia Regional
T-3800 Suffolk, Virginia Import
T-0600 Lacey, Washington Import
T-0557 Oconomowoc, Wisconsin Regional

 

Viewpoint of Target Corporation 

Target Corporation is one of the most preferred brands across the world, and it is committed to maintaining its extensive heritage thriving. Target concentrates on offering simplicity, motivation, and enjoyment to all shoppers. It collaborates with companies across the world to carry out its operations in an eco-friendly and creditworthy manner. 

Management of Target Corporation 

Brian C. Cornell 

Brian C. Cornell is the Chairman and Chief Executive Officer of Target Corporation. He has the responsibility of managing the worldwide business of Target Corporation, comprising the 1,900 outlets of the organization, its digital properties, and over 350,000 workers. He has a bachelor’s degree from UCLA (University of California, Los Angeles) and participated in its management program from Anderson School of Management.

Katie Boylan

She is the Chief Communications Officer and Executive Vice President of the company. Katie has the responsibility of heading the external and internal communications of Target, supervising worker participation, executive placement, and brand, financial, and corporate communications. Furthermore, she heads the CSR and humanitarian endeavours of the company, comprising the Target Foundation. She has a Bachelor of Arts degree from the College of St. Benedict and is a part of the board of trustees. 

Michael Fiddelke 

Michael Fiddelke is the Chief Financial Officer and Executive Vice President of the organization. He is also a part of its leadership squad and supervises the Financial and Retail Services of Target. He holds an MBA degree from Kellogg School of Management, Northwestern University, and a B.Sc degree in Industrial Engineering from the University of Iowa. 

Investors in Target Corporation 

The top ten investors in Target Corporation are: 

Holder $ Value No of Shares Stake
The Vanguard Group, Inc. $9,839,848,054 40,704,261 8.23%
BlackRock Fund Advisors  $6,342,480,164 26,236,784 5.30%
SSgA Funds Management, Inc. $8,845,008,180 36,588,931 7.40%
Columbia Management Investment Advisers, LLC $1,981,036,818 8,194,907 1.66%
Capital Research & Management Co $1,912,775,244 7,912,531 1.60%
Wells Fargo Clearing Services LLC $1,924,304,792 7,960,225 1.61% `
Northern Trust Investments, Inc. $1,594,510,997 6,595,975 1.33%
Geode Capital Management LLC $1,898,363,430 7,852,914 1.59%
Managed Account Advisors LLC $1,209,563,495 5,003,572 1.01%
Norges Bank Investment Management $1,379,495,837 5,706,527 1.15%

 

Target Corporation Financials

Heads Amount
Operating income 6,539 million US$ (2020)
Total Revenue 93,561 million US$ (2020)
Net earnings  4,368 million US$ (2020)
Diluted Earnings Per Share (EPS) $8.64 (2020)

 

Review of Financials of Target Corporation

In terms of total revenue, Target achieved a growth of 19.8% in 2020 fiscal. The five-year CAGR (Compound Annual Growth Rate) of the same is 4.7%. During the same fiscal, the operating income achieved a growth of 40.4%. Here, Target has maintained a 5-year CAGR of 6.0%. In terms of net earnings, Target attained a growth of 33.6%, and the five-year CAGR is 5.6%. Last but not least, there has been 36.3% growth in diluted EPS and the five-year CAGR has reached 10.5%.

Stock Performance

On July 23, 2021, TGT ended trading with NYSE at $261.03 at 4:03 PM EDT (Eastern Daylight Time).

Today’s High  $261.10
Volume traded 483,125
Today’s Low $257.54
52-Week High $261.11
Today’s Open $257.78
52-Week Low $121.82
Previous Close $261.03
Change  ↑4.02 (0.0%)

 

Disclaimer: This article is exclusively for academic goals only and should not be taken as a piece of investment advice. Please consult with your investment advisor before you are taking any investment decisions. 



Latest news

Daniyel Carlson
Daniyel Carlson is a Young Researcher in the field of Data Science & Analytics having research experience of more than 8 years. He has a Masters in Computer Engineering and currently serves as an Editorial Assistant in IGI Global, United States of America. Daniyel also holds honorary positions in the Associate Member of Institute of Research Engineers and Doctors, International Association of Computer Science and Information Technology, International Association of Engineers, Society of Digital Information and Wireless Communications.

Read Also

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here