Target 2006 Annual Report Download - page 5

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Delivering a merchandise assortment that is distinctive,
exclusive and unexpected in its design and value is a key focus
in our effort to connect with our guests and differentiate Target
from our competitors. We continue to introduce unique specialty
brands, expand our premium owned and licensed brands, and
offer a carefully edited assortment of trusted national brands.
For example, in 2007 we are launching Proenza Schouler as the
next GO International collection in women’s apparel, and based
on our success with Rafe for Target handbags, we are extending
this concept to women’s accessories. In both Bath and Beauty
and in Toys, we continue to develop and refine our assortments
of exclusive European brands that were introduced at Target
in 2006, and in consumer electronics, we are dramatically
improving our presentation and selection of nationally branded
flat-panel televisions.
To ensure that we have the right combination of merchandise
to delight our guests, we balance the excitement of our signature
brands with the convenience of our everyday essentials. In
particular, we continue to enhance our offerings of food and
basic household commodities and improve our ease of shopping
for pharmacy and over-the-counter medications through new
store growth, greatly expanded assortments and innovative
product introductions. By strengthening our commitment to our
selection, competitive pricing and in-stock reliability in key
replenishable categories, we position Target as the preferred
shopping destination for all our guests’ needs and wants.
We also aim to capture the essence of our “Expect More.
Pay Less.” brand promise in every Target and SuperTarget store,
in every Target.com transaction and in every financial services
relationship. In our stores, we strive to convey the spirit of our
brand in each store’s design and aesthetics, in our friendly
service and fast checkout, and even in the fresh look of our
new shopping cart, which we plan to introduce this year. At
Target.com, our brand is evident in our site’s ease of navigation,
broad range of features and services, and our extensive
selection of quality, affordable merchandise. And, within Target
Financial Services, we reinforce our brand through the
convenience and rewards provided by our REDcard products,
and the element of wonder and surprise infused in our wide
array of innovative GiftCards.
In short, by continuing to deliver the right balance of fashion
and value and by creating an intuitive shopping environment
that emphasizes convenience and conveys a sense of fun and
discovery, we provide our guests with the excitement they
expect and the Target experience they love.
Because of the continuity of our strategy and consistency of
its execution over time, we remain optimistic about our ability to
continue to grow profitably, while preserving our brand integrity
and maintaining our expected financial returns. Specifically, our
growth plans envision adding about 100 net new stores in the
United States annually for the foreseeable future, potentially
doubling our current store base over the next 15 years.
To achieve this planned pace of growth and support the
unique demands of our branded strategy, we strive to attract
and retain a diverse team of highly motivated and talented
individuals. We believe that creating a desirable and rewarding
workplace reinforces our brand, strengthens our organization
and helps Target sustain its advantage in an extremely
competitive environment. In addition, we continue to embrace
and extend our unbroken decades-long record of community
support, including both substantial team member volunteerism
and financial contributions. Our involvement, which focuses on
programs that inspire education and learning, build safer and
healthier communities, and increase access to the arts, now
totals more than $3 million each week.
For more than a decade, we have been guided by our brand
promise to our guests— to “Expect More. Pay Less.”—and
this approach has produced outstanding results. Over the past
10 years, Target has generated a total annualized return to
shareholders of nearly 22 percent, well above the S&P 500 and
nearly all of our large retail competitors. We are extremely proud
of our performance and believe that it underscores the power
of our strategy and its execution. As we look to the future, we
remain confident in our direction and believe that Target is well
positioned to build on our past success and generate profitable
market share growth for many years to come.
Sincerely,
Bob Ulrich, Chairman and Chief Executive Officer
Board of Directors Change
During the past year, we welcomed Gregg Steinhafel, President of Target, to our board.