Business tactics employed by retail giant, Target Corporation
In the dynamic world of retail, Target Corporation continues to make waves. August 2023 saw the company's total revenue reach an unprecedented high of $17.8 billion, marking a significant 6.9% growth.
This success is not a recent phenomenon. The company's roots date back to 1902, when it was founded as Goodfellow Dry Goods. Over the decades, Target has grown and evolved, opening its first store in Roseville, Minnesota in 1962. In the 1970s, Target merged with the J.L. Hudson Company, becoming the highest earning division of the Dayton-Hudson Corporation.
Target Corporation's growth can be attributed to its strategic approach. The company has adopted ATL and BTL promotional strategies, with a strong social media presence and sponsorship of award shows, sports events, and CSR activities. This strategy has helped Target to connect with its primary consumer base, which is predominantly families, with 43% being housewives with children. The median household income of Target consumers is $58,000.
Target's customer base falls in the category of "Esteem" based on Maslow's Need Hierarchy, seeking superiority, self-respect, status, and prestige. The company positions itself as a brand with high-quality stylish products at low prices, with the tagline "Payless, Expect More."
In August 2023, Target expanded its Drive Up Returns service to over 500 stores. This service is part of a larger $7 billion, multi-year program of remodeling stores to facilitate its Drive Up service, which will reach 2/3 of US households by the start of next year. This expansion has contributed to the surge in shopper visits and digital sales, resulting in the biggest comparable sales gain in the past 13 years.
However, Target has not been immune to challenges. In September 2023, the company announced the closure of nine stores across four states due to escalating retail theft and safety concerns.
Target Corporation's commitment to diversity and inclusion is evident. The company ranked at no. 24 on Diversity Inc magazine's Top 50 Companies for Diversity rankings, and scored 100 by Human Rights Campaign on the 2018 Corporate Equality Index. Fortune magazine ranked Target at no. 38 on the list of the World's Most Admired Companies.
Looking to the future, Target Corporation's CEO, Brian Cornell, will remain in his role until February 1, 2026, when he will be succeeded by Michael Fiddelke. The company continues to strive for sustainability, being ranked at 31 position on the list of the 100 Most Sustainable Companies by Barron's.
Target's journey from Goodfellow Dry Goods to a Fortune 500 company is a testament to its resilience and strategic acumen. As it continues to grow and evolve, Target Corporation remains a significant player in the retail industry.
