Target 2015 Annual Report Download - page 25

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Gross Margin Rate
2013
GM
Rate
Promotions
Other
2014
GM
Rate
Promotions
Shipping
Other
2015
GM
Rate
29.8%
(0.6)%
0.2%
29.4%
0.2%
0.2%
(0.2)%
(0.1)%
29.5%
Our gross margin rate was 29.5€percent in 2015, 29.4€percent in 2014, and 29.8€percent in 2013. The 2015 increase
was primarily due to favorable category sales mix and lower promotional activity relative to the highly promotional
period in 2014 following the 2013 data breach, partially offset by the impact of increased digital channel sales.
The 2014 decrease was primarily due to promotional activity.
Selling, General and Administrative Expense Rate
2013
SG&A
Rate
Cost
Saving
Initiatives
Technology
Other
2014
SG&A
Rate
Cost
Saving
Initiatives
Marketing
Expense
Other
2015
SG&A
Rate
20.2%
(0.8)%
0.2%
0.4%
20.0%
(0.4)%
(0.2)%
0.2%
19.6%
Our SG&A expense rate was 19.6€percent in 2015, 20.0€percent in 2014, and 20.2 percent in 2013. The decrease in
2015 primarily resulted from cost saving initiatives and reduced marketing expense, partially offset by investments in
other initiatives, none of which were individually significant. We will continue to seek efficiency savings to reinvest in
our business; however, we do not expect the SG&A rate to continue to decline at the pace realized during 2014 and
2015.
The decrease in 2014 was primarily related to cost savings initiatives, partially offset by investments in technology and
other initiatives, none of which were individually significant.
20