Target 2011 Annual Report Download - page 26

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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 three
reportable segments: U.S. Retail, U.S. Credit Card and Canadian.
Our U.S. 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 U.S. 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 U.S. 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 REDcardsᓼ help strengthen the bond with our guests, drive incremental sales and contribute to our results of
operations.
Our Canadian Segment was initially reported in the first quarter of 2011 as a result of our purchase of leasehold
interests in Canada from Zellers, Inc. (Zellers). This segment includes costs incurred in the U.S. and Canada related
to our planned 2013 Canadian retail market entry.
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 2011 ended January 28, 2012, and consisted of
52 weeks. Fiscal 2010 ended January 29, 2011, and consisted of 52 weeks. Fiscal 2009 ended January 30, 2010,
and consisted of 52 weeks. Fiscal 2012 will end on February 2, 2013, and will consist 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 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 the past three years 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 SuperTargetᓼ stores 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 Farmsᓼ, Archer Farmsᓼ Simply Balancedȶ, Boots & Barkleyᓼ, choxieᓼ, Circoᓼ,
2