Target 2010 Annual Report Download - page 30

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A significant disruption in our computer systems could adversely affect our operations.
We rely extensively on our computer systems to manage inventory, process guest transactions and summarize
results. Our systems are subject to damage or interruption from power outages, telecommunications failures,
computer viruses, security breaches and catastrophic events. If our systems are damaged or fail to function
properly, we may incur substantial costs to repair or replace them, and may experience loss of critical data and
interruptions or delays in our ability to manage inventories or process guest transactions, which could adversely
affect our results of operations.
In 2011 we expect to migrate our online presence (Target.com) from a platform currently operated by Amazon,
Inc. to our own proprietary platform. If this new platform does not function as designed, we may experience a loss of
guest confidence, data security breaches, lost sales or be exposed to fraudulent purchases.
Our announced plan to expand retail operations into Canada could adversely affect our financial results.
Our plan to enter the Canadian retail market is our first expansion of retail operations outside of the United
States. Our ability to convert the leased locations that we acquire from Zellers Inc. to Target stores depends in large
measure upon our ability to negotiate acceptable modifications to existing lease terms, remodel existing assets and
recruit, hire and retain qualified team members. In addition, access to local suppliers of certain types of goods may
limit our ability to offer a full assortment of merchandise in certain markets. The effective execution of our strategy is
also contingent on our ability to design new marketing and promotional programs that positively differentiate us
from other retailers in Canada. If we do not effectively execute our expansion plans for Canada, our financial
performance could be adversely affected.
Item 1B. Unresolved Staff Comments
Not applicable.
8