Target 2005 Annual Report Download - page 11

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22 new SuperTarget locations, bringing the total number of
stores at year-end to 1,397. In 2006, we plan to open more
than 100 total new stores, and by 2010 we expect to operate
approximately 2,000 Target and SuperTarget locations.
Store Design
Our dedication to incorporating great design and excitement in
our stores allows us to continue to delight our guests and
sustain our competitive advantage. Our stores are:
• inviting and easy-to-shop,
• clean, bright, safe and accessible, and
• appealing to both the time-starved guest and those able to
shop on a more leisurely schedule.
Consistent with Target’s historical practice and our “Expect More.
Pay Less.” brand promise, we introduce a fresh prototype every
few years with new design elements that are aesthetically
pleasing, environmentally friendly, functional, innovative, and
responsive to our guests’ ever-changing preferences. Today,
we have three store prototypes: P2004— our most prevalent,
single-entry, general merchandise store format, P2004+—
a somewhat expanded version of our general merchandise
store for use in higher traffic trade areas, and SuperTarget —
our combination general merchandise and full supermarket
concept. While we invest capital to continuously improve our
store design, we also make significant investments in store
remodels to protect the integrity of the Target brand and to
ensure the physical preservation of all of our stores. In addition,
in selected stores where a full remodel is not currently warranted,
we accelerate the availability of key elements of our latest design
by incorporating the most important features in older stores
through “rightsizing.” These strategic investments in new stores,
remodels and rightsizing projects underscore our commitment
to manage our assets responsibly and ensure that our best
design and innovations are accessible to our guests each time
they visit our stores.
Supporting our Growth
To support our new store growth and better serve our existing
stores, we continue to make significant investments in our
supply chain and in leading-edge technologies. Our current
distribution network includes 23 regional distribution centers
(RDCs) and three import warehouses (IWs). We plan to add
three RDCs and two IWs over the next two years, further
strengthening our distribution network. In addition, we continue
to derive operating efficiencies from our expanded commit-
ment to proven processes like 6Sigma@Target, fact-based
negotiations, reverse auctions and the pursuit of initiatives
like Target Services India, which allows us to leverage our
global workforce—through an office in Bangalore—to perform
a variety of business functions more productively.
We are as intentional about our innovation, design and
continual improvement in our infrastructure as we are in our
stores and our merchandising and believe that thoughtful
investment in these areas is critical to our continued success.
Store Features As a primary
point of contact with our guests,
Target’s stores are a key element
in creating a preferred shopping
experience and reinforcing our
differentiated brand. Our guest-
focused perspective encompasses
a broad spectrum of attributes
from site selection to store
design…from our standards of
housekeeping and disciplined
approach to store remodels to
our fast, fun and friendly guest
service. In each case our guests
are paramount in guiding our
strategy and our execution.