Target 2009 Annual Report Download - page 23

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PART I
Item 1. Business
General
Target Corporation (the Corporation or Target) was incorporated in Minnesota in 1902. We operate as two
reportable segments: Retail and Credit Card.
Our Retail Segment includes all of our merchandising operations, including our large-format general
merchandise and food discount stores in the United States and our fully integrated online business. We offer
both everyday essentials and fashionable, differentiated merchandise at discounted prices. Our ability to
deliver a shopping experience that is preferred by our customers, referred to as ‘‘guests,’’ is supported by our
strong supply chain and technology infrastructure, a devotion to innovation that is ingrained in our
organization and culture, and our disciplined approach to managing our current business and investing in
future growth. As a component of the Retail Segment, our online business strategy is designed to enable
guests to purchase products seamlessly either online or by locating them in one of our stores with the aid of
online research and location tools. Our online shopping site offers similar merchandise categories to those
found in our stores, excluding food items and household essentials.
Our Credit Card Segment offers credit to qualified guests through our branded proprietary credit cards,
the Target Visa and the Target Card (collectively, REDcards). Our Credit Card Segment strengthens the bond
with our guests, drives incremental sales and contributes to our results of operations.
Financial Highlights
Our fiscal year ends on the Saturday nearest January 31. Unless otherwise stated, references to years in
this report relate to fiscal years, rather than to calendar years. Fiscal year 2009 (2009) ended January 30,
2010, and consisted of 52 weeks. Fiscal year 2008 (2008) ended January 31, 2009 and consisted of 52 weeks.
Fiscal year 2007 (2007) ended February 2, 2008 and consisted of 52 weeks.
For information on key financial highlights, see the items referenced in Item 6, Selected Financial Data,
and Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of this
Annual Report on Form 10-K.
Seasonality
Due to the seasonal nature of our business, a larger share of annual revenues and earnings traditionally
occurs in the fourth quarter because it includes the peak sales period from Thanksgiving to the end of
December.
Merchandise
We operate Target general merchandise stores, the majority of which offer a wide assortment of general
merchandise and a limited assortment of food items. During 2009 we increased the offering within some of our
general merchandise stores to include a deeper food assortment, including perishables and an expanded
offering of dry, dairy and frozen items. In addition, we operate SuperTarget stores with a full line of food and
general merchandise items. Target.com offers a wide assortment of general merchandise including many
items found in our stores and a complementary assortment, such as extended sizes and colors, sold only
online. A significant portion of our sales is from national brand merchandise. In addition, we sell merchandise
under private-label brands including, but not limited to, Archer Farmsᓼ, Archer Farmsᓼ Simply Balancedȶ,
Boots & Barkleyᓼ, Choxieᓼ, Circoᓼ, Durabuiltᓼ, Embarkᓼ, Gilligan & O’Malleyᓼ, itsoȶ, Kaoriᓼ, Market Pantryᓼ,
Meronaᓼ, Play Wonderᓼ, Room Essentialsᓼ, Smith & Hawkenᓼ, Sutton and Dodgeᓼ, Target Home, Vroomᓼ,
up & upȶ, Wine Cubeᓼ, and Xhilarationᓼ. We also sell merchandise through unique programs such as
ClearRxSM, GO Internationalᓼ, Great SaveSM and Home Design Event. In addition, we sell merchandise under
exclusive licensed and designer brands including, but not limited to, C9 by Championᓼ, Chefmateᓼ,
Cherokeeᓼ, Converseᓼ One Starᓼ, Eddie Bauerᓼ, Fieldcrestᓼ, Genuine Kids by Osh Koshᓼ, Kitchen
Essentialsᓼ by Calphalonᓼ, Liz Langeᓼ for Targetᓼ, Michael Graves Designȶ, Mossimoᓼ, Nick & Noraᓼ, Sean
Conwayȶ, Simply Shabby Chicᓼ, Sonia Kashukᓼ, Thomas O’Brienᓼ. We also generate revenue from in-store
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