Target 2008 Annual Report Download - page 5

3
both offense and defense to address the challenges of a volatile
economy and sustain our competitive advantage.
To grow sales and profitability in 2009 and beyond, we are
capitalizing on opportunities across the company. For example:
• We continue to invest in our food offering to maximize its
ability to drive greater frequency, strengthen guest loyalty and
make Target a preferred shopping destination. In 2009, we plan
to further enhance the food offering in our new and remodeled
general merchandise stores by providing a deeper assortment
of dry, dairy and frozen foods and adding an edited assortment
of perishable items.
• We are consolidating our owned brand portfolio, concentrating
on fewer, more powerful brands to make a more impactful
statement about these exclusive, high-quality, affordable
assortments. In 2009, we also plan to reinvent and re-launch
Target Brand and Target Home.
• As part of the ongoing innovation to our product design,
development and global sourcing infrastructure and process,
we are working with our vendors to offset the rising cost of
raw materials, reduce lead times and improve product quality,
delivering even greater value for our guests.
• To maintain maximum financial and strategic flexibility, we
continue to evaluate and underwrite proposed new store
projects one at a time. In 2009, we expect to open approximately
75 new stores, or about 60 net of relocations and rebuilds, and
we have dramatically slowed the pace of sites entering our new
store pipeline beyond this year.
• And we remain intensely devoted to operational discipline
throughout our organization — without compromising the guest
experience, including a continued focus on strengthening
expense accountability, improving productivity and carefully
managing inventory.
In today’s environment we recognize, perhaps more than ever,
the importance of providing a workplace that is preferred by our
team members and the value of investing in our communities
to improve the quality of life.
Our legacy of community giving — both in terms of financial
support and team member volunteer hours — is a hallmark of
our brand and a differentiating factor in our ability to attract
and retain top talent.
We are also proud of our long heritage of strong corporate
governance — another aspect of the Target brand that we
take very seriously. Bob Ulrich, who retired as chief executive
officer last May and as chairman of the board in January
2009, exemplified the qualities that we consider paramount
to our current and future success, including a focus on team,
a commitment to community and a devotion to disciplined,
ethical stewardship of this corporation’s assets.
As we look to the future, we are confident that the contributions
of exemplary leaders throughout our organization and the
dedication of our talented and diverse team, combined with
our clear vision, balanced strategy and thoughtful execution,
will position Target to deliver value for our shareholders for a
long time to come.
Sincerely,
Gregg Steinhafel
Chairman, President and Chief Executive Officer