Target 2003 Annual Report Download - page 5

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greater value, reliability and convenience, quicker
delivery of new product and faster, friendlier service
— in short, to do what we have always done, but better.
As described in the following pages of this report,
our plans in 2004 include the continued profitable
expansion of the Target store base in line with our
historical growth in the range of 8 to 10 percent net new
square footage annually. We expect to add approxi-
mately 95 to 100 total new stores, or about 80 to 85
new stores net of closings and relocations. We are very
excited about the modifications we are introducing in
our new store design in 2004 because we believe this
current iteration of Target store is more pleasant and
inviting and promotes our goal of being the preferred
In the past ten years, Target has approximately doubled
its number of stores, roughly tripled its revenues, and
more than quadrupled its pretax segment profit and
Target Corporation has delivered nearly an 18 percent
increase in average annual earnings per share and a total
annualized return to shareholders of about 23 percent.
As we look to the future, we are confident in the
underlying strategy, growth and profit potential of
Target Stores. Based on our proven track record of
performance, we believe that Target will continue to
deliver a brand experience that is preferred by our
guests, and as a result, we believe that Target still has
significant opportunities for profitable expansion and
market share increases in the continental United States.
shopping destination for our guests. In addition, we are
optimistic about the potential future benefits provided
by other programs we are pursuing, such as our global
sourcing and guest relationship management efforts.
Many of these initiatives increasingly reflect the inte-
gration of cross-functional disciplines, allowing us to
leverage our resources, improve our efficiency and
increase our overall agility and speed — critical factors
in sustaining our competitive advantage in a dynamic
retail environment with a competitor as formidable
as Wal*Mart.
One of the reasons for the success of Target over
the long term in this competitive arena is the continuity
and consistency of our strategy. For more than four
decades, we have been able to replicate the unique
Target formula across the country by remaining
focused on who our guest is and what she wants,
and by consistently creating the excitement that our
guests value. We have demonstrated our ability to
execute, to innovate and to grow profitably over time.
Though our outlook for Mervyn’s and Marshall Field’s
is less certain at this time, we firmly believe that the
strategic review we are undertaking and our resulting
decision and actions serve the long-term interests of
Target Corporation overall and re-affirm our primary
objective to create substantial value for our shareholders.
Sincerely,
Bob Ulrich, Chairman and Chief Executive Officer
“As we look to the future, we are confident in the
underlying strategy, growth and profit potential
of Target Stores. Based on our proven track record
of performance, we believe that Target will continue
to deliver a brand experience that is preferred
by our guests.”