Target 2010 Annual Report Download - page 24

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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 fully integrated online
business. We offer both everyday essentials and fashionable, differentiated merchandise at discounted prices. Our
ability to deliver a shopping experience that is preferred by our customers, referred to as ‘‘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 presence is designed to enable guests to purchase products
seamlessly either online or by locating them in one of our stores with the aid of online research and location tools.
Our online shopping site offers similar merchandise categories to those found in our stores, excluding food items
and household essentials.
Our Credit Card Segment offers credit to qualified guests through our branded proprietary credit cards, the
Target Visa and the Target Card. Additionally, we offer a branded proprietary Target Debit Card. Collectively, these
REDcards help strengthen the bond with our guests, drive incremental sales and contribute to our results of
operations.
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 2010 ended January 29, 2011, and consisted
of 52 weeks. Fiscal year 2009 ended January 30, 2010, and consisted of 52 weeks. Fiscal year 2008 ended
January 31, 2009, and consisted of 52 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 larger share of 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, the majority of which offer a wide assortment of general
merchandise and a more limited food assortment than traditional supermarkets. During 2009 and 2010 we
completed store remodels that enabled us to offer an expanded food assortment in many of our general
merchandise stores. The expanded food assortment includes some perishables and some additional dry, dairy and
frozen items. In addition, we operate SuperTargetstores with general merchandise items and a full line of food
items comparable to that of traditional supermarkets. 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. We also sell many products
under our owned and exclusive brands. Owned brands include merchandise sold under private-label brands
including, but not limited to, Archer Farms, Archer FarmsSimply Balanced, Boots & Barkley, choxie, Circo,
Durabuilt, Embark, Gilligan & O’Malley, itsoTM, Market Pantry, Merona, Play Wonder, Room Essentials,
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