Target 2008 Annual Report Download - page 22

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PART I
Item 1. Business
General
Target Corporation (the Corporation or Target) was incorporated in Minnesota in 1902. We operate as two
reportable segments: Retail and Credit Card.
Our Retail Segment includes all of our merchandising operations, including our large-format general
merchandise and food discount stores in the United States and our fully integrated online business. We offer
both everyday essentials and fashionable, differentiated merchandise at exceptional prices. Our ability to
deliver a shopping experience that is preferred by our guests is supported by our strong supply chain and
technology infrastructure, a devotion to innovation that is ingrained in our organization and culture, and our
disciplined approach to managing our current business and investing in future growth. As a component of the
Retail Segment, our online business strategy is designed to enable guests to purchase products seamlessly
either online or by locating them in one of our stores with the aid of on-line research and location tools. Our
online shopping site offers similar merchandise categories to those found in our stores, excluding food items
and household commodities.
Our Credit Card Segment offers credit to qualified guests through our branded proprietary credit cards,
the Target Visa and the Target Card (collectively, REDcards). Our Credit Card Segment strengthens the bond
with our guests, drives incremental sales and contributes to our results of operations.
Prior to 2008, we operated as a single business segment. Financial information about our segments is
included in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations,
and Note 28 of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and
Supplementary Data, of this Annual Report on Form 10-K.
Financial Highlights
Our fiscal year ends on the Saturday nearest January 31. Unless otherwise stated, references to years in
this report relate to fiscal years, rather than to calendar years. Fiscal year 2008 (2008) ended January 31, 2009
and consisted of 52 weeks. Fiscal year 2007 (2007) ended February 2, 2008 and consisted of 52 weeks. Fiscal
year 2006 (2006) ended February 3, 2007 and consisted of 53 weeks.
For information on key financial highlights, see the items referenced in Item 6, Selected Financial Data,
and Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of this
Annual Report on Form 10-K.
Seasonality
Due to the seasonal nature of our business, a substantially larger share of total annual revenues and
earnings traditionally occurs in the fourth quarter because it includes the peak sales period from Thanksgiving
to the end of December.
Merchandise
We operate Target general merchandise stores with a wide assortment of general merchandise and a
limited assortment of food items, as well as SuperTarget stores with a full line of food and general merchandise
items. Target.com offers a wide assortment of general merchandise including many items found in our stores
and a complementary assortment, such as extended sizes and colors, sold only online. A significant portion of
our sales is from national brand merchandise. In addition, we sell merchandise under private-label brands
including, but not limited to, Archer Farmsᓼ, Boots & Barkleyᓼ, Choxieᓼ, Circoᓼ, Durabuiltᓼ, Embarkᓼ, Garden
Placeᓼ, Gilligan & O’Malleyᓼ, itsoȶ, Kaoriᓼ, Market Pantryᓼ, Meronaᓼ, Playwonderᓼ, Room Essentialsᓼ,
Sutton and Dodgeᓼ, Target Brand, Target Home, Trutechᓼ, Vroomᓼ, Wine Cubeᓼ, and Xhilarationᓼ. We also
sell merchandise through unique programs such as ClearRxSM, GO Internationalᓼ, and Home Design Event. In
addition, we sell merchandise under licensed brands including, but not limited to, C9 by Champion,
Chefmate, Cherokee, Converse One Star, Eddie Bauer, Fieldcrest, Genuine Kids by Osh Kosh, Kitchen
Essentials by Calphalon, Liz Lange for Target, Michael Graves Design, Mossimo, Nick & Nora, Perfect Pieces
by Victoria Hagan, Sean Conway, Simply Shabby Chic, Smith & Hawken, Sonia Kashuk, Thomas O’Brien,
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