Target

Target Corporation headquarters, Target Plaza, in Minneapolis

### Formerly

Goodfellow Dry Goods (1902–1903)Dayton's Dry Goods Company (1903–1910)Dayton Company (1910–1962)Dayton Corporation (1962–1969)Dayton-Hudson Corporation (1969–2000)

### Traded as

NYSE: TGTS&P 100 componentS&P 500 component

### Founded

June 24, 1902; 120 years ago (corporation)January 5, 1962; 60 years ago (store)

### Founder

George Dayton (corporation)John Geisse (store)

### Headquarters

Target Plaza1000 Nicollet MallMinneapolis, Minnesota, U.S.

### Key People

Brian C. Cornell (Chairman, CEO)Cathy R. Smith (Executive VP & CFO)Robert M. Harrison (Senior VP and Controller)

### Products

Beauty and health products; bedding; clothing and accessories; electronics; food; furniture; jewelry; lawn and garden; pet supplies; shoes; small appliances; toys/games

### Subsidiaries

Target Brands, Inc.Target Capital CorporationTarget Enterprise, Inc.Target General Merchandise, Inc.DermstoreShipt

**Target Corporation** is an American retail corporation. It is the 8th-largest retailer in the United States, and is a component of the S&P 500 Index.

Target established itself as the discount division of the Dayton's Company of Minneapolis, Minnesota, in 1962; it began expanding the store nationwide in the 1980s (as part of the Dayton-Hudson Corporation) and introduced new store formats under the Target brand in the 1990s. The company has found success as a cheap-chic player in the industry. The parent company was renamed the Target Corporation in 2000 and divested itself of its last department store chains in 2004. It suffered from a massive and highly publicized security breach of customer credit card data and the failure of its short-lived Target Canada subsidiary in the early 2010s but experienced revitalized success with its expansion in urban markets within the United States. As of 2019, Target operated 1,844 stores throughout the United States. The company is ranked No. 37 on 2020 Fortune 500 list of the largest United States corporations by total revenue. Their retail formats include the discount store Target, the hypermarket SuperTarget, and "small-format" stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.

## History

Target began as **Dayton's** in 1902, founded by George Dayton. As several discount stores rose in prominence, Dayton's company expressed interest in opening a new discount chain. In 1962, Dayton opened the first Target in Roseville, Minnesota. Dayton's later opened B. Dalton and acquired Lechmere. In 1969, Dayton's merged with Hudson's, and formed **Dayton-Hudson Corporation**. The new company included Target, Lechmere, B. Dalton, Dayton's, Hudson's, Diamond's, Lipman's, and John A. Brown. Dayton-Hudson became more profitable, and soon it acquired Mervyns. In 1980, Dayton-Hudson sold Lipman's to Marshall Field's. In 1984, Dayton-Hudson sold John A. Brown and Diamond's to Dillard's. Later, they sold Lechmere and B. Dalton. In 1990, Dayton-Hudson bought Marshall Field's.

In 2000, Dayton-Hudson operated Target, Dayton's, Hudson's, and Mervyns. Target earned the most money, so Dayton-Hudson Corporation renamed itself Target Corporation. Target later converted its Dayton's and Hudson's chains to Marshall Field's. In 2004, the corporation divested itself of Marshall Field's. The chain disappeared later, as Marshall Field's was renamed Macy's. In 2011, Target announced that they would open their first international stores in Canada. After launching Canadian stores in 2013, they encountered numerous financial issues which led them to close their operations in the country in 2015. Target mainly competes with Walmart and Kmart. Most Targets have a Starbucks and Pizza Hut Express.

## Brands and subsidiaries

As of 2018 Target has four subsidiaries: Target Brands, Inc., Target Capital Corporation, Target Enterprise, Inc. and Target General Merchandise, Inc.

### Financial and Retail Services

Financial and Retail Services (FRS), formerly Target Financial Services (TFS), issues Target's credit cards, known as the Target REDcard (formerly the Target Guest Card), issued through Target National Bank (formerly Retailers National Bank) for consumers and through Target Bank for businesses. Target Financial Services also oversees GiftCard balances. Target launched its PIN-x debit card, the Target Check Card, which was later re-branded the Target Debit Card. The Target Debit Card withdraws funds from the customer's existing checking account, and allows for up to $40 "cash back". The debit card allows guests to save five percent off each purchase. In late 2017, Target replaced its REDcard slogan "Save 5% Today, Tomorrow, & Everyday with Target REDcard" when it rolled out new benefits for REDcard holders by offering exclusive products on Target.com and preorders with "Everyday Savings. Exclusive Extras."

### Target Sourcing Services

This global sourcing organization locates merchandise from around the world for Target and helps import the merchandise to the United States. Such merchandise includes garments, furniture, bedding, and towels. TSS has 27 full-service offices, 48 quality-control offices, and seven concessionaires located throughout the world. TSS employs 1,200 people. Its engineers are responsible for evaluating the factories that do business with Target Corporation for quality, as well as labor rights and transshipment issues. TSS was acquired by Target Corporation in 1998, was founded in 1916 as the Associated Merchandising Corporation, and was previously owned by the clients it served.[*citation needed*] Target Sourcing Services ceased operations in its department store group, the division of the former Associated Merchandising Corporation that acted as a buying office for Saks, Inc., Bloomingdale's, Stage Stores Inc., T.J.Maxx, and Marshalls.

### Private label brands

Target Brands is the company's brand management division that oversees the company's private label products. In addition, Bullseye Dog is a mascot, and the Bullseye Design and 'Target' are registered trademarks of Target Brands.

* **Good & Gather**, food and beverage brand replacing Archer Farms and Simply Balanced.
* **Archer Farms**, up-market grocery products;
* **Market Pantry**, value grocery products;
* **Simply Balanced**, organic grocery products;
* **Sutton & Dodge**, a premium meat line;
* **Boots & Barkley**, a pet food and supply line;
* **Embark**, an outdoor gear line of camping and travel equipment;
* **Room Essentials**, a low-end home goods line.
* **Threshold**, a premium furniture line;
* **Fieldcrest**, bedding & bath line in partnership with brand owner Iconix Brand Group;
* **up & up**. Target issued a re-launch of the Target brand as **up&up** to include an expanded product selection and a new design. The **up & up** brand offers essential commodities including household, healthcare, beauty, baby, and personal care products. The brand claims to offer products of equal quality to national brands at a fraction of the cost, averaging a savings of 30 percent. As of September 2009, up & up offers over 800 products across 40 categories.

Other private labels include brands launched in July 2016, during Back to School sales.

* **Pillowfort**, a children's line of bedding
* **Cat and Jack**, a children's line of apparel and accessories.
* **Cloud Island**, a baby's line of bedding and clothing.
* **Project 62**, a household goods line placed alongside Room Essentials.
* **Goodfellow & Co.**, a clothing and personal-care line for men, with the name being an homage to their beginnings as **Goodfellow Dry Goods**
* **A New Day**, a clothing line for women.
* **JoyLab**, a fitness clothing line.
* **Hearth and Hand**, a home & lifestyle brand, in collaboration with Magnolia

After the launch, the clothing and bedding brands made a big hit and was successful. Target executives claim that the new brands increased sales by $1 billion and increased 15% in revenue, only during their first year.

8 Target private label brands that launched in 2018

* **Universal Thread**, a denim lifestyle brand
* **Opalhouse**, eclectic home decor
* **Heyday**, a line of electronic accessories
* **Original Use**, male clothing brand targeting Gen-Z and Millennials.
* **Wild Fable**, women's clothing brand targeting Gen-Z.
* **Made By Design**, a homelines brand, made up of home basics like towels, cooking utensils, glassware, plates, pots, kitchen gadgets, and more.
* **Prologue**, sophisticated female line of clothing.
* **Smartly**, essential commodity brand including household, healthcare, beauty, and personal care products.

In addition, Target recently released 3 new intimates, loungewear, and sleepwear brands for women on February 25, 2019:

* **Auden**, an intimates and lingerie exclusive brand
* **Stars Above**, their in-house brand for sleepwear
* **Colsie**, an intimates and loungewear brand

On January 9, 2020, Target announced its new activewear brand, **All In Motion**.

Former brands include:

* **Cherokee**, children's and women's clothing. On September 10, 2015, it was announced that Target stores would cease carrying the brand when its partnership with Cherokee Inc. expired on January 31, 2017. It was replaced by Cat & Jack;
* **Circo**, toddler's and kids clothing. The brand was replaced by Cat & Jack upon debut.
* **Merona**, a clothing brand purchased by Target in 1991;
* **Mossimo Supply Co.**, a clothing line. In partnership with the brand owner Iconix Brand Group;
* **Xhilaration** and **Gilligan & O'Malley** product lines of intimates and sleepwear were discontinued after the release of the brands Auden, Stars Above, and Colsie.

### Website

Target.com
 Type of site
 URL
 Commercial
 Registration
 Launched
 Current status

Target.com owns and oversees the company's e-commerce initiatives, such as the Target.com domain. Founded in early 2000 as target.direct, it was formed by separating the company's existing e-commerce operations from its retailing division and combining it with its Rivertown Trading direct marketing unit into a stand-alone subsidiary. In 2002, target.direct and Amazon.com's subsidiary Amazon Enterprise Solutions created a partnership in which Amazon.com would provide order fulfillment and guest services for Target.com in exchange for fixed and variable fees. After the company sold Marshall Field's and Mervyn's in 2004, target.direct became Target.com. The domain *target.com* attracted at least 288 million visitors annually by 2008, according to a Compete.com survey. In August 2009, Target announced that they would build and manage a new Target.com platform, independent of Amazon.com. This new platform was to launch in 2011, in advance of the holiday season. Prior to the announcement, Target and Amazon had extended their partnership until 2011. In January 2010, Target announced their vendor partners for the re-platforming project. These partners include Sapient, IBM, Oracle, Endeca, Autonomy, Sterling Commerce and Huge, among others. The re-platformed Target.com officially launched on August 23, 2011, effectively ending the partnership with Amazon.com.

### Former subsidiaries[edit source]

* **Target Portrait Studio** was a chain of portrait studios that were located in select Target stores. The chain, which was operated by Lifetouch, opened in 1996 and ceased operations on January 28, 2017.
* **Target Canada** were the chain of Target stores in Canada. It was formed in 2013 when Target acquired Zellers and converted into Target stores. Target Canada was in operation for two years until the closure of all stores in 2015.

## Supply chain

As of May 2016, Target Corporation operates 41 distribution centers across the United States. With the exception of vendor supplied items, such as greeting cards and soda, these distribution centers ship items directly to Target stores. Also, unlike Walmart, Target's grocery selection does not come from their own distribution centers, but from the companies with whom Target has partnered.

The retail chain's first distribution center opened in Fridley, Minnesota, in 1969. It included a computerized distribution system and was known as the Northern Distribution Center. During this time, the chain consisted of seventeen stores after having expanded into Oklahoma and Texas.

On August 9, 2004, Target announced to their suppliers that they were going to perform a trial on the effects of radio-frequency identification on the efficiency of supply chain management in the Dallas–Fort Worth metroplex. This trial involved one Target distribution center and ten nearby Target stores. Here, RFID tags were placed on the bar codes of pallets and cartons to track the goods from the suppliers to the distribution center, and from the distribution center to the stores. As of 2009, RFID had been phased out of the Dallas–Fort Worth stores. In 2016, Target planned to roll out the RFID technology at all 1,795 of its store locations across the United States.

Target opened three new distribution centers in 2006 (Rialto, California, DeKalb, Illinois) and one in 2009 (Newton, North Carolina) to support the growth of its stores. On January 27, 2009, Target announced the closing of its distribution center in Maumelle, Arkansas, the second-oldest in the company. The reason cited was the need to ensure that Target remains competitive in the long-term. In June 2009 Target opened a new distribution center to supply more than 60 stores in three states.

SuperTarget and PFresh stores require fresh produce, refrigerated and frozen items. Food distribution centers owned by SuperValu have been utilized by Target for many years. In October 2003, SuperValu's facility in Phoenix, Arizona, was converted to serve Target exclusively. The same change was implemented at the SuperValu center in Fort Worth, Texas. A new distribution center was constructed by Target in Lake City, Florida, to serve the Southeast, but it was operated by SuperValu until 2011 when it transitioned to Target. A fourth center in Cedar Falls, Iowa, opened in 2009 and is unique in that it is located adjacent to a standard Target Distribution Center, each utilizing the same dispatch office. Other warehouses owned by SuperValu are still used in other regions, but Target plans to replace those over the next few years. In Colorado, stores are serviced through *FreshPack Produce Inc.* of Denver. In the mid-Atlantic region/Philadelphia market, C&S Wholesale Grocers services the fresh produce, meat, dairy, bakery, & frozen needs to "PFresh" stores. Target partnered with Swisslog Holding to use a semi-automated monorail picking system called the CaddyPick system for use in the food distribution centers.

The company operates four facilities to receive shipments from overseas manufacturers and suppliers. They are located near ports at Rialto, California; Savannah, Georgia; Lacey, Washington; and Suffolk, Virginia. Merchandise received is sent directly to Regional Distribution Centers. Internet sales orders from the Target Direct division, which operates from the Target.com website, are processed by the facility in Woodbury, Minnesota, with some support from Savannah, Georgia, and other vendors. New centers opened in Ontario, California, and Tucson, Arizona, in 2009.

## Corporate affairs

### Headquarters

Target Plaza South, a portion of the Target Corporation headquarters complex in downtown Minneapolis, United States; the building originally featured the Target Light System, created by using 3M light pipes but was replaced by more energy-efficient LEDs in 2011.
Target Corporation has its headquarters on Nicollet Mall in Minneapolis, near the site of the original Goodfellows store. The complex includes Target Plaza North and Target Plaza South. Ryan Companies developed the complex, and Ellerbe Becket served as the architect. Target had the approximately $260 million complex developed to provide one location of office space for 6,000 employees. The 14-story Target Plaza North has 600,000 square feet (56,000 m2) of office and retail space while the 32-story Target Plaza South has 1,250,000 square feet (116,000 m2) of space.

Brian Cornell is the CEO of Target Corporation. In January 2016, Cornell began making home visits in an effort to understand better the needs and desires of his customers. In January 2016, Target fired Tina Tyler from her job as chief stores officer. She was replaced with long-time employee Janna Potts.

On August 26, 2020, the headquarters were damaged and looted following a false report that a man was killed by Minneapolis Police on the Nicollet Mall area.

### Diversity

The company states that "individuality may include a wide spectrum of attributes such as personal style, age, race, gender, ethnicity, sexual orientation, language, physical ability, religion, family, citizenship status, socio-economic circumstances, education, and life experiences."

The Target employee diversity initiative is called "All Together Target". It specifically seeks to work with vendors and contractors that are owned by minorities or women.

In February 2012, the company extended the team member discount to same-sex partners of employees. It had received a 100 on the Human Rights Campaign Corporate Equality Index Score, prior to donating funds to Minnesota Forward.

The National Association for the Advancement of Colored People has repeatedly given Target failing grades on its annual Economic Reciprocity Initiative report card, a measure of the company's "commitment to the African-American citizenry". In 2003 and 2005, the NAACP has rated Target an "F" on this report; in 2004, Target was rated a "D-". In 2006, when Target was asked why it didn't participate in the survey again, a representative explained, "Target views diversity as being inclusive of all people from all different backgrounds, not just one group."

In February 2006, the National Federation of the Blind (NFB) filed a class action discrimination lawsuit in Northern California's Alameda County Superior Court, claiming that Target's commercial website contains "thousands of access barriers that make it difficult, if not impossible, for blind customers to use." Target Corporation settled the lawsuit in October 2008, paying $6 million and agreeing to work with the NFB over the next three years improving the usability of the Target.com site. August 24, 2009, the United States Equal Employment Opportunity Commission (EEOC) filed a discrimination lawsuit against Target Corporation for unlawfully denying reasonable accommodation to an employee with multiple disability-based impairments and substantially reducing his work hours due to the medical conditions. According to the claims in the EEOC press release, Target's actions violated Title I of the Americans With Disabilities Act (ADA) and Title I of the Civil Rights Act of 1991.

### Philanthropy

Target is consistently ranked as one of the most philanthropic companies in the US. It ranked No. 22 in *Fortune* magazine's "World's Most Admired Companies" for 2010, largely in part to the donation efforts of the company as a whole. According to a November 2005 *Forbes* article, it ranked as the highest cash-giving company in America in percentage of income given (2.1%). Target donates around 5 percent of its pre-tax operating profit; it gives over $3 million a week (up from $2 million in years prior) to the communities in which it operates. It also gives a percentage of charges from its Target Visa to schools designated by the cardholders. To date, Target has given over $150 million to schools across the United States through this program.

Further evidence of Target's philanthropy can be found in the Target House complex in Memphis, Tennessee, a long-term housing solution for families of patients at the city's St. Jude Children's Research Hospital. The corporation led the way with more than $27 million in donations, which made available 96 fully furnished apartments for families needing to stay at St. Jude over 90 days.

Target has a no-solicitation rule at its properties, as it seeks to provide a "distraction-free shopping experience for its guests." Exemptions to this policy were previously made for the Salvation Army red kettles and bell-ringers outside Target stores during the holidays through Christmas. In 2004, however, Target asked the organization to explore alternate methods to partner with Target. Target donates to local Salvation Army chapters through its grant program and annually to the United Way of America (the Salvation Army is a member of the United Way coalition).

In 2005, Target and the Salvation Army created a joint effort called "The Target/Salvation Army Wish List", where online shoppers could donate goods to the organization for hurricane victims by buying them directly from Target.com between November 25, 2005, and January 25, 2006. In 2006, they created another joint effort called "The Target/Salvation Army Angel Giving Tree", which is an online version of the Salvation Army's Angel Tree program; in addition to donating proceeds made from the sales of limited edition Harvey Lewis angel ornaments within Target's stores. During the Thanksgiving holiday of 2006, Target and the Salvation Army partnered with magician David Blaine to send several families on a shopping spree the morning of Black Friday. The challenge held that if Blaine could successfully work his way out of a spinning gyroscope by the morning of Black Friday, then several families would receive $500 shopping certificates. The challenge was completed successfully by Blaine.

During disasters, Target has been a major benefactor for relief efforts. Target provided monetary and product donations during the September 11 attacks; it also donated money for relief efforts for the 2004 tsunami in South Asia and donated $1.5 million (US) to the American Red Cross in the aftermath of Hurricane Katrina in 2005. It also allowed its store properties in the affected area to be used as command centers for relief organizations and donated supplies such as water and bug spray.

Target will often donate its unused, returned or seasonal merchandise (particularly clothing) to Goodwill Industries.

### Environmental record

In 2007, Target Corporation agreed to reduce its sales on all materials containing polyvinyl chloride (PVC). Testers found toxic lead and phthalates and large amounts of PVC in toys, lunch boxes, baby bibs, jewelry, garden hoses, mini blinds, Christmas trees, and electronics. Several studies have shown that chemicals in vinyl chloride can cause serious health problems for children and adults. The University of Illinois Medical Center in Chicago states that people who use products containing PVC can become exposed with harmful toxic phthalates and lead, which eventually can become a big contributor with dioxins. Lois Gibbs, executive director of the Center for Health, Environment, and Justice, stated, "Target is doing the right thing by moving away from PVC and switching to safer alternatives." Other companies reducing the PVC on their shelves include Walmart, Microsoft, Johnson & Johnson, Nike, and Apple. Target stores have been taking environmental measures by reusing materials within their stores and recycling products such as broken hangers, cardboard, and rechargeable batteries. Target is beginning to reduce energy use with energy-efficient storefronts and reducing waste with recycling programs. All Target stores in the United States use plastic carts with metal frames. In mid-2006, Target took it a step further when it began introducing a newer cart design made entirely of plastic. It also uses the same design in its hand-use baskets.

Target released a 13-page report in 2007 that outlined their current and future plans for becoming more earth-friendly according to LEED. Such efforts include installing sand filtration systems for the stores' wastewater. Recycling programs will be aimed at garment hangers, corrugated cardboard, electronics, shopping carts, shrink wrap, construction wastes, carpeting, and ceiling tiles and roofing materials. All stores in Oklahoma will be partnered with Oklahoma Gas & Electric to exclusively use wind power for all Target stores in order to reduce greenhouse gas emissions. Stores nationwide use only LED and fluorescent lights and low-flow restrooms that reduce wastewater by 30%. Some Target stores are installing roof gardens or green roofs, which absorb stormwater and cut down on surface runoff, mitigate temperature fluctuations and provide habitats for birds. There are currently four green-roof Target stores in Chicago.

Target carries over 700 organic and alternative products from brands such as Archer Farms, Burt's Bees, and Method Products. They also sell clothes made from organic cotton, non-toxic cleaners, low-energy lighting and electronics, non-toxic and non-animal tested cosmetics, and furniture made from recycled materials. As of June 2007, Target has been offering reusable shopping bags as an alternative to disposable plastic bags. Target gift cards are made from corn-based resins. All of the stores' packaging is done with a modified paperboard/clamshell option and has goals for phasing out plastic wrap completely.

In collaboration with MBH Architects, Target's first "green" building was a 100,000+ square foot Target store built-in 1995 in Fullerton, California. It was a part of the EPA Energy Star Showcase for its use of skylights that cut the original energy consumption by 24% with a 5-year payback. Target and MBH Architects were awarded the "Green Lights Partner/Ally of the Year Award".

Target is the only national retailer employing a Garment Hanger reuse program, which keeps millions of pounds of metal and plastic out of landfills. In 2007, this program prevented 434 million hangers from entering landfills.

On June 15, 2009, the California Attorney General and 20 California District Attorneys filed a lawsuit in Alameda County alleging that Target stores across the state have been illegally dumping hazardous wastes in landfills.

On October 1, 2009, Target Corporation agreed to pay a $600,000 civil penalty for importing and selling a variety of toys with lead paint levels that were higher than is legally allowed. The Consumer Products Safety Commission alleged that "Target knowingly imported and sold the illegal Chinese-made toys between May 2006 and August 2007." A similar problem occurred a few months later in February 2010, when Target pulled Valentine's Day "message bears" from its shelves at the request of the California attorney general's office. The bears, which were manufactured in China, contained more lead than is permissible under federal law for children under 12.

A class action suit was filed in 2014 in the U.S. District Court for the Northern District of Ohio, on behalf of consumers in Ohio that purchased Target-brand wet wipes. The lawsuit filed against Target Corporation alleges the retailer misled consumers by marking the packaging on its up & up® brand wipes as flushable and safe for sewer and septic systems. The lawsuit also alleges that so-called flushable wipes are a public health hazard because they are alleged to clog pumps at municipal waste-treatment facilities.

On Dec. 5, 2018, Alameda County District Attorney O’Malley announced fining Target $7.4 million for putting illegal e-waste, medical supplies and private information into the garbage.

### Customer privacy

In December 2013, a data breach of Target's systems affected up to 110 million customers. Compromised customer information included names, phone numbers, email and mailing addresses. In March 2015, Target reached a class-action settlement with affected consumers for $10 million (plus class-action attorney fees). In May 2016, Target settled with affected banks and credit unions for $39 million (plus class-action attorney fees), of which $19 million would be disbursed by a MasterCard program.

## Former chains

* **Dayton's** - converted to Marshall Field's in 2001
* **J.B. Hudson & Son** - converted to Dayton Jewelers in 1967
* **Lipman's** - sold to Marshall Field's in 1980
* **B. Dalton** - sold to Barnes & Noble in 1986
* **Shreve & Co.** - converted to Dayton Jewelers in 1967
* **Dayton Jewelers** - sold to Henry Birks & Sons in 1982
* **Pickwick Book Shops** - acquired and converted to B. Dalton Booksellers in 1968
* **Lechmere** - sold in 1989
* **J.E. Caldwell**
* **Hudson's** - converted to Marshall Field's in 2001
* **Diamond's** - sold to Dillard's in 1984
* **John A. Brown** - sold to Dillard's in 1984
* **Team Electronics**
* **C.D. Peacock, Inc.**
* **J. Jessop and Sons.**
* **Mervyns** - sold in 2004
* **Ayr-Way** - acquired and converted to Target in 1980
* **Plums** - sold to Ross Stores in 1984
* **Gold Circle** - acquired and converted to Target in 1989
* **Richway** - acquired and converted to Target in 1989
* **Marshall Field's** - sold to May Department Stores in 2004
* **Everyday Hero** - closed in 1997
* **Smarts** - closed in 1997
* **Fedco** - acquired and converted to Target in 1999
* **Zellers** - acquired and converted to Target Canada in 2013