Target 2008 Annual Report Download - page 12

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10
We achieve our unparalleled brand experience by balancing our
ambitious goals with a firm grounding in the current economic
and competitive environment. We consistently push ourselves
to be the first to market with the newest innovations, but we
don’t let our aspirations distract us from what we need to do
to be successful today.
Smart Investments and Store Planning
We are committed to creating value for our shareholders over
time by thoughtfully managing and strategically investing in our
business. In 2008, we remained dedicated to the preservation of
our strong credit ratings as a key priority in our capital structure.
We believe the current economic environment has reinforced
the importance and benefits of maintaining these ratings.
Our disciplined investment in new and existing stores will
continue to be a significant contributor to our success over
time. In 2008, we opened 114 total stores, 91 net of closings
and relocations. This included 62 net new general merchandise
stores and 29 new SuperTarget locations, bringing the total
number of stores at year-end to 1,682 stores in 48 states
including our first two stores in Alaska. In 2009, we will increase
our presence to 49 states when we open three stores in
Hawaii. In addition, we will roll out a new store design with
upscale exterior finishes like brick and decorative veneers and
interior enhancements such as wider aisles, more family fitting
rooms, expanded food assortments, improved merchandise
adjacencies and a new pharmacy location at the front of the
store — all of which make shopping our stores even easier.
Guests’ aspirations for a shopping experience are fulfilled in
Target stores with friendly service, a safe, clean environment,
and a guest-friendly layout. Our store designs — including our
wide aisles, bright lighting, intuitive layout and visual elements
— are a cornerstone of our brand and differentiate us from our
competition. We take considerable care to ensure our stores
evolve with our guests’ wants and needs by reinvesting in our
existing properties.
In addition, we continue to incorporate sustainable design
into our stores as we have for years. Some of the sustainable
attributes in our new prototypes include low-flow fixtures
in restrooms that reduce water use by 30 percent; heating,
ventilation and air-conditioning systems that deliver 30 percent
greater energy efficiency than required by most city codes; and
light fixtures with two low-mercury bulbs rather than the typical
three, saving energy and reducing maintenance expenses.
We remain confident in our long-term domestic growth
prospects and believe we have ample opportunities to continue
to grow profitably for many years to come. At the same time,
our growth aspirations are grounded in the current environment,
which has compelled us to reduce the number of stores we
plan to open in 2009 and 2010.
Aspirational & Pragmatic