Target, the nation's #2 discount chain, now operates more than 1,500 Target and Super Target stores in 47 states, as well as an online business called Target.com. Target and its larger grocery-carrying stores, Super Target, have carved out a niche by offering more upscale, fashion-forward merchandise than rivals Wal-Mart and Kmart. After years of struggling to turn around its Marshall Fields and Mervyns departments stores divisions, the discounter sold them both in 2004. Target also owns apparel supplier The Associated Merchandising Corp. and issues Target Visa and its proprietary Target Card (www.Answers.com/topic/target-corporation).
Year over year, Target Corp. has been able to grow revenues from $51.3B to $57.9B. Most impressively, the company has been able to reduce the percentage of sales devoted to cost of goods sold from 69.64% to 69.29%. This was a driver that led to a bottom line growth from $2.4B to $2.8B. Target outperformed (corporate governance quotient) 85.5 % of S&P 500 companies and 97.7 % of discount retail stores. The corporate governance quotient incorporates the values of transparency, accountability, integrity, and responsibility towards maximizing shareholder value. Yahoo analysts opinions mean recommendation is currently a 2.2, indicating moderate buy to hold (a 1.0 is a strong buy and a 5.0 is a strong sell).
Moody's Investors Service downgraded the retailer's long-term rating on debt to A2 from A1. The credit-rating company said the cut is due to Target's plan to use debt to help finance its $10 billion stock buyback. The company’s buyback represents more than 20 percent of outstanding shares and is expected to be completed within three years. The CEO believes the new program will maintain strong investment-grade debt ratings within a prudent range while allowing for substantial value to be returned to shareholders (www.investors.target.com). Moody's also called Target's free cash flow "thin," given the discount retailer's sizable capital spending for store expansion and its growing credit card operations (www.Marketwatch.com). The contribution from the company's credit card operations to third quarter earnings before taxes, net of the allocated interest expense, was $157 million, an increase of $23 million, or 17.1 percent, from the same period in 2006.
Ratios – 3rd Quarter Ending 3-Nov-07 (in millions)
Current - 18,334 / 13,563 = 1.35 current assets / current liabilities
Quick – 18,334 - 8,746 / 13,563 = .71 current assets – inventories / current liabilities
Inv. Turnover – 14,835 / 8,746 = 1.69 sales / inventories
Total Assets Turnover (TAT) – 14,835 / 43,289 = .
As I have outlined in the charts below, there are various similarities and differences between Wal-Mart and Target. Wal-Mart is Target’s primary competitor, and vice versa. Wal-Mart has a strong market presence in its global markets and has a diverse range of products and services that are affordable and available in stock. Target, on the other hand, does not have a strong market presence or efficient product supply; however, Target’s physical environment and innovative products further the brand’s image and value. Unfortunately, Target and Wal-Mart are both e-commerce laggards with major competitors such as Amazon. Target faces complications with their pricing strategies and their product availability, which hinders their strength when competing
Target has many competitors in the market, and the level of competition is highly intense. Some of its main rivals are Wal-Mart stores, Home Depot and Costco Wholesale Corp. All of them produce similar products as well as offer almost the same services to their consumers. Naturally, the organization would need a strategy that helps it to stand out and to distinguish it from its competitors, thus, Target 's positioning was based on more than just pricing; it combined quality and style. This was the differentiation strategy that have always been applied since the launch of the organization.
Apple Computer Inc designs, manufactures, and markets personal computers and related personal computing and communication solutions. The return of Steve Jobs, the companies founder, as CEO has pulled the company’s stock price up 775-percent through his launch of innovative products such as the iMac computer line. On January 5, 2000, Jobs announced that he was dropping interim from his CEO title and taking the job full-time. With this news and Apple’s new products such as the iBook, a portable pc and Quick TV, an internet television access feature, Apple Computer is headed for success and is sure to increase their share in the computer market.
Target must compete vigorously and fairly in the marketplace using our independent judgment to make the best decisions for the Company.
I chose to analyze the third largest retail drugstore chain in the United States, Rite Aid Corporation. I chose to analyze Rite Aid Corp. because our family owns approximately 1200 shares and we have taken quite a loss on our investment. We are in the process of deciding whether or not we should sell our stock. Additionally, my Mother has been a pharmacist at Rite Aid Corp for 11 years and she often pays close attention to the financial stability of the company. We both feel that when you are employed by a corporation, that the corporation should be financially stable. A financially secure employer is one who generally offers better compensation and advancement to its employees.
Comparing both the charts above I think the target price of $32.50 is accurate for the company’s stock.
The Target currently has about24 stores in Canada and about 1784 stores in the U.S. The Target has over team members which are over 16000 who work in a team in order to act as a bridge in between the stores and the suppliers. Worldwide the Target is around 365000 ...
Target is also a company that is built on ethics. With integrity instilled in all of their team members, everyone helps to uphold Target’s great reputation and maintain their morals of honesty and family. Another big part of Target’s company culture is their focus on community service. After working for Target, one is truly able to understand the meaning of giving back. At Target, team members dedicate their volunteer hours to work with schools, nonprofit organizations, charities etc. to make a difference in the world.
From the beginning Target stores supply chain has been based on the personal principles of the owner/founder Mr. Dayton. These principles include being known as the store chain that not only offers its customer’s dependable merchandise but the store chain that offers fair business practices and a generous spirit of giving (Target Corporation, 2014).
Walmart stakeholders like every brick and mortar retailer were concerned with the Amazon apocalypse as more and more retail stores were closing from Target to Macy’s to Sears and thousands of employees lost their jobs. That fear led a lot of traders to hold Walmart stock on short interest as they though that Walmart is going down too as Amazon was a major concern on many stakeholders’ minds from suppliers to customers to investors to banks. However, Walmart adapted to the new game and excelled.
Target bank is called the Target National Bank. It is owned by the Target Corporations itself and all the receivables go into Target has approximately 1,600 million dollars worth of lines of credits from twenty five different banks, approximately half the worth of the line is used and is due back for payment June 2005, with an extension all the way up to June 2006. The other half of the payment is due June 2008. The expected long term rate of securities rate for October 31 2004 was 8.5 %.
An unenthusiastic response to Target’s expansion into Canada resulted in upsettingly low success rates this year. The recent implementation of 127 stores nation-wide has cost the corporation nearly $1 billion in retail sales. Although the future of Target Canada appears to be gloomy, it is with hope that providing the public with adequate knowledge of the corporation and their plans for the future, they will be encouraged to support this potentially booming discount retailer.
One of the largest discount franchises in America wasn’t always recognized as Target, however, as the Dayton Dry Goods Company. Which was founded in 1902 by George Dayton who had an outstanding and extensive seven years of background in real estate. Dayton Company was credited as a family run business with dependable products and a fair business strategy. When George Dayton died in 1938 the business continued to be family run until 1983. With the Dayton management, they expanded into a Department store by including commercial interior, opened in numerous malls, and eventually expanded nationally in the United States.
has three main competitors, JCPenney, Target, and Wal-Mart. Each of which have a slightly different niche in the market. JCPenney is one of the largest department stores in the United States, focusing on home furnishings and apparel. They have 1,060 locations in 49 U.S. states and Puerto Rico. In addition to their typical merchandise, JCPenney will often lease out different departments in their stores to house companies such as Seattle 's Best Coffee, Sephora as well as other smaller individual salons, optical centers, and jewelry repair shops. Wal-Mart on the other hand is an American multinational retail corporation that was also ranked as the largest company in the world by revenue in Forbes Annual Fortune Global 500 list in 2016. Wal-Mart chains include discount department stores, superstores, hypermarkets, and grocery stores. Wal-Mart also owns Sam’s Club, an American retailer warehouse club ranked the 8th largest in the United States. They currently have locations spanning the world, establishing themselves in 28 countries. The Target Corporation, which is the second largest discount retailer in the United States, after Wal-Mart, shares many similarities with JCPenney and Wal-Mart. Target carries many of the same products as these retailers and in some locations also has specific departments such as Target Optical and Target Photo. Although some of these companies aren 't focused solely on the apparel industry, they each have at least one division which
Target Corporation being a retail industry, the structure by product grouped to a functional level practices works the best. This is necessary for the other functional levels to collaborate as a single team to produce a positive customer shopping experience. Target Corporation further divided the functional level into a geographic area to exercise management tasks effectively with the given authority. Each structure of the management at the geographic level has a strategy discussion, a line of communication, growth, and progress reporting according to the corporate reporting plan. Jana Potts who manages Target Corporation store has closer to 300, 000 employees working for her and the effective can be improved if the role is broken within domestic into channels, stores into broader segments and a separate global position. The rapidly growing online channel and global expansion are necessary to support Target Corporation's strategy of internal growth and sustain it for long term sustainability. These structural changes will allow Target Corporation to connect with its employee at a functional level and bring changes faster, track and monitor the