Target 2011 Annual Report Download - page 27

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Durabuiltᓼ, Embarkᓼ, Gilligan & O’Malleyᓼ, itsoᓼ, Market Pantryᓼ, Meronaᓼ, Play Wonderᓼ, Prospiritᓼ, Room
Essentialsᓼ, Smith & Hawkenᓼ, Spritzȶ, Sutton & Dodgeᓼ, Target Homeȶ, up & upᓼ, Wine Cubeᓼ, and
Xhilarationᓼ. In addition, we sell merchandise under exclusive brands including, but not limited to, Assetsᓼ by Sarah
Blakely, Auroᓼ by Goldtoe, Boots No7, C9 by Championᓼ, Chefmateᓼ, Cherokeeᓼ, Converseᓼ One Starᓼ,
dENiZENȶ by Levi’sᓼ, Fieldcrestᓼ, Genuine Kids by OshKoshᓼ, Giada De Laurentiisȶ for Targetᓼ, Harajuku Mini for
Targetᓼ, Just One You made by Carter’s, Kitchen Essentialsᓼ from Calphalonᓼ, Liz Langeᓼ for Target, Michael
Graves Designȶ, Mossimoᓼ, Nick & Noraᓼ, Papyrus, Paul Frankᓼ for Target, Shaun White, Simply Shabby Chicᓼ,
Sonia Kashukᓼ and Thomas O’Brienᓼ Vintage Modern. We also sell merchandise through unique programs such
as ClearRxᓼ and GO Internationalᓼ, and through periodic exclusive design and other creative partnerships. We also
generate revenue from in-store amenities such as Target Caf´
eSM, Target Clinicᓼ, Target Pharmacyᓼ and Target
Photoᓼ, and from leased or licensed departments such as Target Opticalᓼ, 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 SalesSales by Product Category
2011 2010 2009
Household essentials 25% 24% 23%
Hardlines 19 20 22
Apparel and accessories 19 20 20
Food and pet supplies 19 17 16
Home furnishings and d´
ecor 18 19 19
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.
Food and pet supplies includes dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat,
produce and pet supplies.
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.
Distribution
The vast majority of our merchandise is distributed through our network of distribution centers. We operated 37
distribution centers at January 28, 2012. 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 28, 2012, we employed approximately 365,000 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 414,000 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