Target 2010 Annual Report Download - page 25

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Smith & Hawken, Sutton & Dodge, Target Home, Vroom, up & up, Wine Cubeand Xhilaration. In addition,
we sell merchandise under exclusive licensed and designer brands including, but not limited to, C9 by Champion,
Chefmate, Cherokee, ConverseOne Star, Eddie Bauer, Fieldcrest, Genuine Kids by OshKosh, Kitchen
Essentialsfrom Calphalon, Liz Langefor Target, Michael Graves Design, Mossimo, Nick & Nora, Simply
Shabby Chic, Sonia Kashukand Thomas O’BrienVintage Modern. We also sell merchandise through unique
programs such as ClearRxSM, GO Internationaland The Great SaveSM. Additionally, we generate revenue from
in-store amenities such as Target Caf´
eSM, Target Clinic, Target Pharmacyand Target Photo, and from leased or
licensed departments such as Target Optical, Pizza Hut, Portrait Studio and Starbucks.
Effective inventory management is key to our ongoing success. We utilize various techniques including
demand forecasting and planning and various forms of replenishment management. We achieve effective inventory
management by being in-stock in core product offerings, maintaining positive vendor relationships, and carefully
planning inventory levels for seasonal and apparel items to minimize markdowns.
Percentage of Sales
Sales by Product Category
2010 2009 2008
Household essentials 24% 23% 22%
Hardlines 20 22 22
Apparel and accessories 20 20 20
Home furnishings and d´
ecor 19 19 21
Food and pet supplies 17 16 15
Total 100% 100% 100%
Household essentials includes pharmacy, beauty, personal care, baby care, cleaning and paper products.
Hardlines includes electronics (including video game hardware and software), music, movies, books, computer
software, sporting goods and toys.
Apparel and accessories includes apparel for women, men, boys, girls, toddlers, infants and newborns. It also
includes intimate apparel, jewelry, accessories and shoes.
Home furnishings and d´
ecor includes furniture, lighting, kitchenware, small appliances, home d´
ecor, bed and bath,
home improvement, automotive and seasonal merchandise such as patio furniture and holiday d´
ecor.
Food and pet supplies includes dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat,
produce and pet supplies.
Distribution
The vast majority of our merchandise is distributed through our network of distribution centers. We operated 37
distribution centers, including 4 food distribution centers, at January 29, 2011. General merchandise is shipped to
and from our distribution centers by common carriers. In addition, third parties distribute certain food items.
Merchandise sold through Target.com is distributed through our own distribution network, through third parties, or
shipped directly from vendors.
Employees
At January 29, 2011, we employed approximately 355,000 full-time, part-time and seasonal employees,
referred to as ‘‘team members.’’ During our peak sales period from Thanksgiving to the end of December, our
employment levels peaked at approximately 400,000 team members. We consider our team member relations to
be good. We offer a broad range of company-paid benefits to our team members. Eligibility for, and the level of,
these benefits varies, depending on team members’ full-time or part-time status, compensation level, date of hire
3
PART I