As Target raises its its fourth-quarter sales forecast – thanks to “record-high” sales on Black Friday and Cyber Monday – the newly published RetailX Global Elite Top1000 report looks at the discount retailer’s 60 years of success.
Target ranked Top50 in the Global Elite 2024 for the way in which it serves customers at scale, through an effective combination of digital commerce and almost 2,000 stores.
Target’s history goes back to 1961, when family- owned department store business The Dayton Company announced plans for a new discount store chain. The first four stores opened the following year in Minnesota before Target starting to expand further afield in 1966.
In 1969, the Dayton Hudson Corporation was formed through a merger with JL Hudson Company and the same year, the business published its first corporate responsibility report. In 1970, it held its first Earth Day celebration. In 2021, it launched its Target Forward sustainability strategy followed in 2022 by its first net zero energy store.
The target.com website launched in September 1999 and in 2008, it launched a mobile site, followed the same year by its iPhone app, to which it added a virtual reality shoppable experience in 2017.
Today, Target sells across the US, with 1,963 stores in 50 states, supported by more than 400,000 employees, 59 warehouses and 32 offices around the world. The retailer says that more than 75% of the US population live within ten miles of a Target store. Target is owned by stockmarket-listed Target Corporation, which also owns marketplace and fast delivery service Shipt and retail media business Roundel.
In its latest full-year financial results, to 03 February 2024, Target Corporation reported operating income of $5.7bn (+48.3% on the previous year) on total revenue of $107.4bn (-1.6%). Some 18.3% of its sales started online in the latest year, with the rest taking place in store (81.7%). Most (97.4%) of its total sales were fulfilled through stores, including digital sales that were shipped or collected from store or through a related pick-up service. Only 2.6% did not involve a store.
Commenting on the figures, Brian Cornell, chairman and chief executive of Target Corporation, said customers had responded to “newness, value and the inspiration and ease of our instore and digital shopping,” adding, “Looking ahead, we’ll continue to invest in the strengths and differentiators that have delivered strong financial performance over time.”
Deals and promotions are highlighted across its website, where delivery choices include same-day delivery and collection, including drive-up pick-up. Shoppers can join the paid-for Target Circle 360 loyalty club for discounts, free two-day shipping, and an extra 30 days on its return policy.
This target profile is one of nine in the RetailX Global Elite Top1000 report. Each profile assesses their performance and highlights opportunities for other retailers. Amazon, Apple, Boots, Carrefour, H&M, Nike and Samsung are also looked at in detail.
The full report provides a comprehensive analysis of the global ecommerce and multichannel market, offering a 360-degree view of consumer behaviour, company performance, and regional economies.
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