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Big Box Chain Retailers
TARGET
Headquarters
900 Nicollet Mall
Minneapolis, Minnesota 55403
Officers
Chairman, President and CEO: Gregg Steinhafel
President, Community Relations and Target Foundation: Laysha L. Ward
President, Target Financial and Retail Services: Terrence J. Scully
Fiscal 2012 Sales: $71.96 billion
Fiscal 2012 Profit: $2.9 billion
Advertising Spend
Target spent $1.65 billion on advertising during its 2012 fiscal year, a slight increase from the $1.59 billion it spent the year before.
Target, the second-largest discount retailer in the U.S. behind Walmart, offers a wide variety of apparel, accessories, furniture, electronics, entertainment products, pharmaceutical services, health and beauty products, jewelry, office supplies and grocery and food items. Target advertises its merchandise as more trendy and upscale than other discount retailers, like Sears and Walmart.
As of January 2013, Target operated 1,778 stores in all U.S. states except for Vermont, as well as 251 SuperStores in 22 states. In 2011, Target announced its expansion into Canada, with plans to open around 120 stores in the country by 2013.
Aside from its main Target stores, the corporation has other outlets, including CityTarget, which caters to younger, urban shoppers and offers a smaller merchandise selection that is tailored to city life. For suburban and rural shoppers, the corporation has a chain of SuperStores called Target Greatland, which offers a wider selection of merchandise, as well as a food court area.
Target has vastly expanded its grocery selection in a number of stores, adding grocery sections to current stores for perishable food items, as well as expanding its SuperTarget chain stores, which are large-scale stores that offer a wide selection of traditional Target merchandise and food items.
Looking ahead, Target’s CEO Steinhafel noted in a letter to shareholders that the company’s strategy will be “shaped by our guests’ expectations for more shopping flexibility and price transparency, and the rapid pace of change in technology. To ensure that we continue to strengthen our guests’ love for our brand and deliver the surprise and delight they have come to expect, we’ll leverage our greatest asset, our stores, in combination with increased investment in our digital platforms, to create a seamless, relevant and personalized experience.”
Target has a wide variety of diamond, cubic zirconia, precious metal and gemstone jewelry, with a selection of rings, chains, necklaces, earrings, bracelets, watches, fashion jewelry and bridal jewelry. Most of Target’s jewelry selection is sold through its website, though a lot of its outlets carry items in-store as well.
Target classifies its jewelry division within its apparel category, which includes clothing, shoes and other accessories and which accounted for 19 percent of the company’s total sales in fiscal 2012.
The majority of Target’s jewelry items are priced under $100, though it also has a variety of more expensive jewelry offered exclusively through its website. The most expensive jewelry items Target sells are engagement rings, which are priced to just under $4,000.
Target usually partners with designers, like Dean Harris, Karen Erickson and Vicki Beamon, to release branded collections of apparel and jewelry items. Target’s current spring collections feature jewelry collections by designers Kate Young and Prabal Gurung.
The company is also committed to responsible mining and sourcing. In 2011, for example, Target signed the “No Dirty Gold” campaign’s Golden Rules for more responsible mining. The company further requires that all of its business partners that manufacture and produce Target items participate in the company’s proprietary Social Compliance program that includes unannounced audits for what Target calls “severe violations,” which include child labor, forced, labor, corporal punishment and bribery. Article from the Rapaport Magazine - June 2013. To subscribe click here.
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