Target 2005 Annual Report Download - page 9

7
Merchandising as the business strategist, Target Sourcing
Services as the global sourcing authority, Marketing as the brand
and communications leader and Product Design & Development
as the trend and product expert. This integrated, cross-
functional approach produces an exceptional Target-brand
experience and is exemplified by programs introduced in 2005
such as Global Bazaar—our distinctive internationally-themed
home assortment, Trutech—our newly-introduced owned brand
in electronics and Target Limited Edition — our holiday gift
collection of luxury apparel and accessories.
More Ways to “Eat Well. Pay Less.”
During the past five years, we have significantly increased our
focus on food to provide greater convenience for our guests and
drive more frequent visits to our stores. Specifically, we have:
• significantly expanded our presence of SuperTarget stores and
the space dedicated to food in our general merchandise stores,
• improved the quality and value of our assortment,
• dramatically increased the penetration of our owned brands,
• enhanced our in-store signing and marketing efforts to
improve the visibility and perceived value of our consumable
and perishable selections, and
• fully integrated our approach to food merchandising, pres-
entation and pricing into Target systems and processes to
increase operational efficiency and guest satisfaction.
Thomas O’Brien This exclusive line of home merchandise, called
Vintage Modern, represents our “best” quality offering, outstanding
value and our commitment to be a destination in home décor.
Today, SuperTarget locations represent more than 10 percent of
our total stores and more than 15 percent of our square footage,
compared with only 3 percent and 5 percent, respectively, five
years ago. In addition, through rightsizing projects, major remodels
and continued new store growth, more than 650 Target stores
contained an expanded food offering at year-end 2005, and
we expect our store base with this enhanced assortment to
grow meaningfully in 2006, reflecting our commitment to
continuously improve our guests’ shopping experiences.
Strengthening our Owned Brands
Our owned food brands are important contributors to our overall
food strategy and to our continued gains in market share and
profitability. Reflecting Target’s high standards of freshness, our
distinctive packaging, exceptional value and careful brand
management, Archer Farms, our premium quality brand, and
Market Pantry, our national brand equivalent at great value,
have grown rapidly in recent years and together represent a
low double-digit percentage of our overall food sales. We are
steadily expanding these assortments to further increase
selection and guest acceptance. The success of these owned
brands provided a strong foundation for Target’s 2005
introductions of both Sutton & Dodge choice angus beef and
Choxie. Furthermore, they embody the essence of Target’s
“Expect More. Pay Less.” brand promise and represent the
product innovation, exciting design and premium quality our
guests have come to expect from Target.
Smith & Hawken Our exclusive partnership with this well-respected,
high-quality brand allows us to offer our guests great styling and attractive
prices on garden accessories and outdoor décor.