Target 2009 Annual Report Download - page 25

forms of retail commerce. Our ability to positively differentiate ourselves from other retailers largely determines
our competitive position within the retail industry.
In our Credit Card Segment, our primary mission is to deliver financial products and services that drive
sales and deepen guest relationships at Target. Our financial products compete with those of other issuers for
market share of sales volume. Our ability to differentiate the value of our financial products primarily through
our rewards programs, terms, credit line management, and guest service determines our competitive position
among credit card issuers.
Intellectual Property
Our brand image is a critical element of our business strategy. Our principal trademarks, including Target,
SuperTarget and our ‘‘Bullseye Design,’’ have been registered with the U.S. Patent and Trademark Office. We
also seek to obtain intellectual property protection for our private-label brands.
Geographic Information
Substantially all of our revenues are generated in, and long-lived assets are located in, the United States.
Available Information
Our Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and
amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are
available free of charge at www.Target.com (click on ‘‘Investors’’ and ‘‘SEC Filings’’) as soon as reasonably
practicable after we file such material with, or furnish it to, the Securities and Exchange Commission (SEC).
Our Corporate Governance Guidelines, Business Conduct Guide, Corporate Responsibility Report and the
position descriptions for our Board of Directors and Board committees are also available free of charge in print
upon request or at www.Target.com (click on ‘‘Investors’’ and ‘‘Corporate Governance’’).
Item 1A. Risk Factors
Our business is subject to a variety of risks. The most important of these is our ability to remain relevant to
our guests with a brand they trust. Meeting our guests’ expectations requires us to manage various strategic,
operational, compliance, and financial risks. Set forth below are the most significant risks that we face.
If we are unable to positively differentiate ourselves from other retailers, our results of operations could
be adversely affected.
The retail business is highly competitive. In the past we have been able to compete successfully by
differentiating our shopping experience by creating an attractive value proposition through a careful
combination of price, merchandise assortment, convenience, guest service and marketing efforts. Guest
perceptions regarding the cleanliness and safety of our stores, our in-stock levels and other factors also affect
our ability to compete. No single competitive factor is dominant, and actions by our competitors on any of
these factors could have an adverse effect on our sales, gross margin and expenses.
If we fail to anticipate and respond quickly to changing consumer preferences, our sales, gross margin
and profitability could suffer.
A substantial part of our business is dependent on our ability to make trend-right decisions in apparel,
home d´ ecor, seasonal offerings, food and other merchandise. Failure to accurately predict constantly
changing consumer tastes, preferences, spending patterns and other lifestyle decisions may result in lost
sales, spoilage and increased inventory markdowns, which would lead to a deterioration in our results of
operations.
Our continued success is substantially dependent on positive perceptions of the Target brand.
We believe that one of the reasons our guests prefer to shop at Target and our team members choose
Target as a place of employment is the reputation we have built over many years of serving our four primary
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