Corporate Profiles - 2024 - 102

COMPANY overview
Target Corp.
A
s inflation-weary consumers have reined in
discretionary spending, mass retailer Target
Corp. has sharpened its focus on food.
Over the past four years, Minneapolis-based
Target's food and beverage sales have grown by
almost $9 billion to become a $24 billion business.
Food and beverages accounted for about
23%, or $23.90 billion, of Target's fiscal 2023
sales of $105.8 billion, up from 21% in 2022,
20% in 2021 and 2020, and 19% in 2019.
Leading the charge is Good & Gather. The
own brand, launched by Target in 2019 and now
spanning nearly every food and beverage category,
took less than a year to top $1 billion in
Food and beverages are becoming a bigger
part of the retailer's sales
In its one-stop-shop strategy, Target's core
merchandise categories include food and beverages,
apparel and accessories, beauty and
household staples, hardlines, and home furnishings
and decor.
" As we execute our 2024 plans and look to
the future, we're putting key leaders and capabilities
in place to sustain profitable growth over
the long term, " said Brian Cornell, chairman and
chief executive officer.
In March, Target unveiled a long-range plan
to enhance the customer experience in stores
and online. Target Circle, a loyalty program
with over 100 million members, was bolstered
with the new Target Circle Card (offering an
extra 5% off purchases) and the new Target
Circle 360 paid membership program (including
free
delivery benefits). In 2024, Target
Chief executive officer -
Brian Cornell
sales and is on its way to $4 billion. Target followed
up in 2021 with " sweet and savory " brand
Favorite Day, products formulated to offer premium
flavor at affordable prices.
This past May, Target honed its value proposition
with a plan to lower everyday prices on
5,000 frequently shopped items, including food
and beverages plus essentials in grocery, health,
beauty and household categories. Then in late
June, Target named a new food chief merchant:
Lisa Roath, slated to become chief merchandising
officer of food, essentials and beauty in
early 2025. She will take over from Rick Gomez,
promoted to chief commercial officer. Christina
Hennington also saw her role expand to chief
strategy and growth officer.
102 \ October 2024
also strengthened its own-brand line, which
had 2023 sales of over $30 billion, with the
launch of two labels (dealworthy and Gigglescape)
and the relaunch and expansion of its
up&up brand.
Target said that, over the next decade, it will
further invest in its " stores as hubs " model, which
positions stores as showrooms and service centers
as well as digital fulfillment sites for delivery
and pickup orders. Plans call for the opening
of more than 300 new stores, upgrades for
the " vast majority " of Target's 1,966 stores and
supply chain optimization, including next-day
delivery through sortation centers and the use
of artificial intelligence to improve inventory efficiency
and forecasting.
" We're making strategic investments that expand
on our core strengths, further elevate our
guest experience and deepen our connection to
both current and new guests, " Cornell said. " Most
importantly, these plans provide fuel for our next
era of growth. "
Target took a big step in that direction in its
second quarter ended Aug. 3. Earnings jumped
40%, and the retailer posted its first comparable-sales
gain in over a year.
" We met our goal of returning to growth, "
Cornell said. CP
Target Corp. net earnings
in millions
2023
$4,138
2022
$2,780
2021
$6,946
Source: Target Corp.
Target Corp. net revenues
in millions
2023
$107,412
2022
$109,120
2021
$106,005
Source: Target Corp.
Target Corp. share price
$90
$115
$140
$165
$190
Sept. Nov.
2023
Sept. 4, 2024 = $152.12
HIGH =
April 1, 2024 = $175.23
LOW =
Oct. 6, 2023 = $101.67
Jan.
2024
March M Julyay
Source: New York Stock Exchange
TARGET CORP.
Sept.
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Corporate Profiles - 2024

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