From: Christy Murphy, Staff Accountant, Behemoth Industries
Date: November 11, 2012
Subject: Annual Report for Target
The Target Corporation is a discounting store that provides high quality merchandise with reasonable prices. Target Corporation started in 1902 in Minneapolis, Minnesota originally known as Dayton Dry Goods Company. Then in 1962 became known as Target. Target today is the second largest retailer in the U.S. following Wal-Mart.
Throughout the years, Target has worked hard to maintain a strong brand value while keeping their prices reasonable. They have accomplished this by offering customers with stylish clothing, food and up-to-date products. Because of this, they have acquired a strong loyal customer base. Even though Target is a box store, they make sure their stores are chic and trendy with clean isles and classy displays. This philosophy is what has kept Target in the business for the last 50 years.
In 2011 Target’s main theme was “store growth.” Target acquired 189 Zeller stores in Canada with the idea of opening 125 stores in 2013 (Target, p.4-5). Target also remodeled stores to bring in the latest merchandising strategy and also took steps to help these stores be environmentally friendly. At the end of 2011, Target is trying a new concept called “urban CityTarget,” that will offer the same high quality merchandise for the city life. CityTarget stores will be opened in Chicago, Seattle, San Francisco and Los Angeles (Target, p.5).
On page two of the annual financial report, it gives a brief overview of Target’s company revenue from 2007-2011. This overview allows investors to see that Target has maintained an extended growth, even through a tough economy. Of the $68.5 million revenue, Target breaks it down even further, by showing percentages of each retail section on how much revenue came from them.
By looking at 2011 and 2010 financials it is fair to say that Target has increased their profits despite higher gas prices and a weak economy. Compared to 2010, Target has gained $900,000 in net income in 2011. Target sales and revenue went up from $67,390 in 2010 to $69,865 in 2011, a 3.5 percent increase. These increase has allowed shareholders to profit as well. Target paid dividends of $777 million an 17.8 percent increase from 2010 to shareholders.