Target Corporation is a general merchandise retailer offering everyday essentials and fashionable, differentiated merchandise at discounted prices. The company operates as a single segment, enabling guests to purchase products seamlessly in stores or through digital channels. Target's strategy focuses on expanding its relevancy in consumers' lives and driving traffic, sales, and market share growth through newness, style, and value; everyday low pricing; and convenient shopping experiences.

Key elements of their strategy include strengthening owned brands, curating national brands, expanding signature partnerships, leveraging promotions and their loyalty program (Target Circle), opening and updating stores, and enhancing the digital experience. The company also focuses on transforming its supply chain for increased efficiency, speed, capacity, and reliability. Target leverages its stores as fulfillment hubs, fulfilling more than 96% of total sales.

• Employees: Approximately 415,000 full-time, part-time, and seasonal team members (as of February 3, 2024)
• Geographic Footprint: Primarily in the United States
• Headquarters: Minneapolis, Minnesota
• Founded: 1902
• Number of locations/facilities: 1,956 stores (as of February 3, 2024) and 58 supply chain facilities
• Revenue: $107.4 billion (FY2023)
• Key Subsidiaries/Brands: Shipt, A New Day, All in Motion, Art Class, Auden, Ava & Viv, Boots & Barkley, Brightroom, Bullseye's Playground, Casaluna, Cat & Jack, Cloud Island, Colsie, dealworthy, Embark, Everspring, Favorite Day, Figmint, Future Collective, Gigglescape, Good & Gather, Goodfellow & Co, Hearth & Hand with Magnolia, Heyday, Hyde & EEK! Boutique, JoyLab, Kindfull, Knox Rose, Kona Sol, Made By Design, Market Pantry, Mondo Llama, More Than Magic, Opalhouse, Open Story, Original Use, Pillowfort, Project 62, Room Essentials, Shade & Shore, Smartly, Smith & Hawken, Sonia Kashuk, Spritz, Stars Above, Sun Squad, Threshold, Universal Thread, up & up, Wild Fable, Wondershop, Xhilaration

• CEO: Brian C. Cornell (since August 2014)
• CFO: Michael J. Fiddelke (since November 2019, also Executive Vice President and Chief Operating Officer since February 2024)
• Chief Growth Officer: A. Christina Hennington (since February 2021)
• Chief Human Resources Officer: Melissa K. Kremer (since January 2019)
• Chief Legal & Compliance Officer and Corporate Secretary: Don H. Liu (since October 2023)
• Chief Guest Experience Officer: Cara A. Sylvester (since May 2022)
• Chief Corporate Affairs Officer: Matthew L. Zabel (since October 2023)

Note: Mr. Liu intends to retire as Target's Chief Legal & Compliance Officer and Corporate Secretary in 2024. Mr. Fiddelke will remain Chief Financial Officer until a successor is appointed to that role.

• Annual Revenue: $107.4 billion (FY2023)
• Net Income: $4.1 billion (FY2023)
• Total Assets: $55.4 billion (as of February 3, 2024)
• Employees: Approximately 415,000 (as of February 3, 2024)
• Key Financial Highlights: Total revenue decreased 1.6% year-over-year, comparable sales decreased 3.7%, operating income increased 48.3%, and operating cash flow increased 114.6% year-over-year.

Target offers a wide assortment of general merchandise and food. Key product categories include:

• Apparel and Accessories: Clothing, jewelry, accessories, and shoes for all ages.
• Beauty and Household Essentials: Personal care, baby gear, cleaning, paper products, and pet supplies.
• Food and Beverage: Dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, produce, and food service.
• Hardlines: Electronics, toys, entertainment, sporting goods, and luggage.
• Home Furnishings and Décor: Furniture, lighting, storage, kitchenware, small appliances, home décor, bed and bath, home improvement, school/office supplies, greeting cards and party supplies, and seasonal merchandise.

Target also sells merchandise through exclusive design and creative partnerships, and shop-in-shop experiences with partners such as Apple, Disney, Levi's, and Ulta Beauty. In-store amenities include Starbucks, Target Café, and Target Optical. CVS operates pharmacies and clinics within Target stores.

Target operates as a single segment designed to enable guests to purchase products seamlessly in stores or through digital channels. The company manages its business across five core merchandise categories: Apparel and Accessories, Beauty and Household Essentials, Food and Beverage, Hardlines, and Home Furnishings and Décor.

Sales by category in FY2023: Apparel and accessories ($16.5B), Beauty and household essentials ($31.3B), Food and beverage ($23.9B), Hardlines ($16.2B), Home furnishings and décor ($17.8B).

Target's strategy aims to expand its relevance in consumers' lives and drive traffic, sales, and market share growth. Key strategic initiatives include:

• Strengthening owned brands and curating leading national brands.
• Delivering value through everyday low pricing and leveraging promotions and the Target Circle loyalty program.
• Opening new stores, updating existing stores, and enhancing the digital experience.
• Transforming the supply chain for increased efficiency, speed, capacity, and reliability.
• Being a favorite discovery destination by making it easy for consumers to discover Target's products and experiences.
• Expanding capabilities to leverage assets and enhance the guest experience.

The company continues to leverage stores as fulfillment hubs, with stores fulfilling more than 96% of total sales.

Target competes with traditional and internet retailers, including department stores, off-price general merchandise retailers, wholesale clubs, category-specific retailers, drug stores, supermarkets, direct-to-consumer brands, and other forms of retail commerce. The company's competitive position depends on its ability to differentiate itself and provide compelling value to its guests.

Target's market position is influenced by its ability to make trend-right decisions in a broad range of merchandise categories and adapt to changing consumer preferences. The company's success also depends on positive perceptions of Target and its relationships with guests and team members.

• Competitive Risks: Inability to differentiate from other retailers, reliance on price and convenience, and failure to adapt to new technologies and fulfillment options.
• Consumer Preference Risks: Failure to predict and respond to changing consumer preferences and spending patterns, leading to lower sales and increased markdowns.
• Reputational Risks: Negative publicity, incidents involving the workforce or business partners, and failure to meet stakeholder expectations regarding environmental, social, and governance matters.
• Supply Chain Risks: Dependence on vendors and third parties, changes in tax or trade policy, interruptions in operations or supply chain, and increased commodity or supply chain costs.
• Technology and Data Risks: Disruptions to technology systems, failure to maintain and update systems, and inability to maintain information security, cybersecurity, and data privacy.