Target 2006 Annual Report Download - page 12

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10
These rewards, combined with our Take Charge of Education
program, also build guest loyalty—driving a significant number
of additional store visits. Our GiftCard program also creates
affinity with our guests. By offering a broad, seasonally fresh
assortment of distinctive GiftCard designs, we reinforce our
brand and fuel incremental sales and profits. In 2006, we issued
and redeemed more than $1.5 billion in GiftCards.
Virtual Benefits
Target.com complements our Target in-store experience and
delivers value to our guests through its services, marketing and
merchandising strategies. Given the increasing importance of
this channel, we remain focused on developing new online
opportunities and leveraging the synergies between our stores
and Target.com. For example, we continue to test new product
ideas on Target.com and offer extensions of our in-store
assortments. In addition, through our newest online feature—
Find it at a Target store— we are giving our guests greater
transparency into each store’s merchandise ownership and
making it easier for guests to shop from the convenience of
their homes. As we grow, we remain dedicated to delivering
online products and services that work seamlessly with our
in-store offerings and to consistently providing our guests with
a Target brand shopping experience through our integrated,
multichannel approach.
Commitment to Our Brand
A recent independent survey confirmed that the Bullseye is
recognized by 97 percent of Americans, but we are not standing
still. Target remains steadfastly focused on strengthening our
brand and delivering on our “Expect More. Pay Less.” brand
promise. Through our innovative marketing, our fresh, clean
stores, our great guest service and our differentiated merchandise,
we are dedicated to providing design and value for our guests
and delivering a Target brand experience on every visit.
Strategic Growth
Guided by our disciplined and strategic approach to site selection
and property development, Target annually invests billions of
dollars in new stores and store support infrastructure. For many
years, we have added approximately 8 percent to our annual
square footage, net of closings and relocations, and at our
current size, this pace of growth translates into approximately
100 net new stores per year. During 2006, we opened 72 net
new general merchandise stores and 19 new SuperTarget
locations, bringing the total number of stores at year end to
1,488. At our current growth rate, we expect our total U.S. store
count to be about 2000 in 2011, and longer term, we believe
the potential for profitable U.S. Target stores may be as many
as 3,000 or more. Given this potential for domestic growth, we
are not currently pursuing opportunities for international
expansion. We remain focused on executing our U.S. strategy
to preserve our brand and our financial performance—and we
expect this new store growth, combined with the contribution
EXPECT MORE. PAY LESS.
Electronics
We continue to upgrade our consumer electronics
assortment and presentation to feature our guests’
preferred styles and brands. To simplify their purchase
decisions, we have carefully edited our in-store offering,
developed clearer, more informative signing, and
created a more extensive, complementary electronics
offering at Target.com to ensure the right solutions
for all of our guests.