Target 2015 Annual Report Download - page 8

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A significant portion of our sales is from national brand merchandise. Approximately one-third of 2015 sales related to
our owned and exclusive brands, including but not limited to the following:
Owned Brands
Archer Farms® Market Pantry® Threshold™
Simply Balanced™ Merona® up€& up®
Boots€& Barkley® Room Essentials® Wine Cube®
Circo® Smith€& Hawken® Xhilaration®
Embark® Spritz™ Ava & Viv®
Gilligan€& O'Malley® Sutton€& Dodge® Sonia Kashuk®
Exclusive Brands
C9 by Champion® DENIZEN® from Levi's® Nate Berkus for Target
Cherokee® Fieldcrest® Oh Joy!® for Target
Mossimo® Genuine Kids® from OshKosh® Hand Made Modern®
Liz Lange® for Target Just One You® made by carter's® Shaun White
Kid Made Modern®
We also sell merchandise through periodic exclusive design and creative partnerships and generate revenue from in-
store amenities such as Target Café and Target Photo, and leased or licensed departments such as Target Optical,
Portrait Studio, Starbucks, and other food service offerings. The majority of our stores also have a CVS pharmacy
from which we will generate ongoing annual, inflation adjusted occupancy-related income (see MD&A and Note 6 of
the Financial Statements for more information).
Distribution
The vast majority of merchandise is distributed to our stores through our network of 40 distribution centers. Common
carriers ship general merchandise to and from our distribution centers. Vendors or third party distributors ship certain
food items and other merchandise directly to our stores. Merchandise sold through our digital sales channels is
distributed to our guests via common carriers from our distribution centers, from vendors or third party distributors,
from our stores or through guest pick-up at our stores. Using our stores as fulfillment points allows improved product
availability and delivery times and also reduces shipping costs.
Employees
At January€30, 2016, we employed approximately 341,000 full-time, part-time and seasonal employees, referred to
as "team members." During the 2015 holiday sales period our employment levels peaked at approximately 390,000
team members. 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,
and/or length of service. These company-paid benefits include a pension plan, 401(k) plan, medical and dental plans,
disability insurance, paid vacation, tuition reimbursement, various team member assistance programs, life insurance,
and merchandise and other discounts. We believe our team member relations are good.
Working Capital
Our working capital needs are greater in the months leading up to the holiday sales period, which we typically finance
with cash flow provided by operations and short-term borrowings. Additional details are provided in the Liquidity and
Capital Resources section in MD&A.
Effective inventory management is key to our ongoing success, and we use various techniques including demand
forecasting and planning and various forms of replenishment management. We achieve effective inventory
management by staying in-stock in core product offerings, maintaining positive vendor relationships, and carefully
planning inventory levels for seasonal and apparel items to minimize markdowns.
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