Target 2002 Annual Report Download - page 6

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Our commitment to please our
guests is at the heart of our strategy.
It fuels our drive to be agile and
innovative and underlies our pursuit
of opportunities that reinforce our
differentiated brand. For instance, to
appeal to our guest’s sophisticated
style and standards of quality, we
infuse our assortment with fashion
newness, trusted brands and
exclusive designer names. To satisfy
her demand for value, we match
Wal*Mart’s prices on identical and
similar items in local markets and
price our differentiated products at
deep discounts compared to other
benchmark competitors. Because
we understand the importance of
time in our guests’ hectic lives, we
deliberately invest millions of dollars
in systems and training to speed
up the checkout process in our
stores. And, because we know that
our guest makes her purchasing
decisions based on the total shopping
experience, not on product and
service alone, we are uncompromising
in our housekeeping standards and
store presentation, distinctive and
entertaining in our marketing, and
deeply committed to the support
of community programs that are
meaningful to our guests, including
education, social services and the arts.
Our goal is to deliver even greater
value to our guests by understanding
them better. Through our proprietary
credit cards at Target, Mervyn’s and
Marshall Field’s, we are able to learn
more about our guests’ shopping
preferences, strengthen our affinity
with our guests and offer them the
opportunity to earn money-saving
rewards. Similarly, the Target Visa
card enhances our relationship with
millions of our guests by providing
broader utility, increased financial
flexibility and improved loyalty
programs. In 2003, Target Visa card
holders will further benefit from the
national launch of e-coupons and the
promise of customized promotional
offers using our smart chip technology.
Our focus on delighting our
guests is also a key factor in driving
our growth. To provide greater
convenience to our existing guests
and expand our ability to reach
new guests, we continue to open
profitable Target discount and
SuperTarget locations, even in our
most highly penetrated markets.
In 2002, our store opening program
included 82 total (62 net) new
Target discount stores and 32
new SuperTarget stores. In 2003, we
plan to add approximately 100 total
(80 net) new stores, resulting in a net
square footage increase in the range
of 9 percent. The allocation of this
space within our stores reflects
our guests’ appreciation for the
convenience of one-stop shopping.
We continue to expand our food
offering and pharmacy service within
our discount stores, and we expect
SuperTarget to remain a key driver of
our future net square footage growth.
To support this continued
expansion and further enrich our
guests’ overall shopping experience,
Target strategically invests hundreds
of millions of dollars each year in
technology and distribution. These