Target Corporation (Target) was founded by George Dayton in 1902 in the heart of Minneapolis, Minnesota in 1902. Originally known as the Dayton Dry Goods Company, its focus was on general goods for families at competitive prices. As it grew from department store retailer to discount chain superstore, Target tailored its strategy on selling designer brand name goods at discount prices. Today, the innovative superstore has cultivated a brand that is known for its superior guest service, great in-store design, and fashionable, affordable merchandise. On the corporate side, Target has generally been known for good corporate governance and its participation in a wide variety of community-focused initiatives. Similar to its biggest competitor,
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The company has proceeded with an accelerated growth strategy in every decade since its 1967 Initial Public Offering (IPO). For example, in the 1990s, Target launched its Superstore concept, credit card services and created the “Expect More. Pay Less” brand identity. In the early 2010s, despite the presence of over 1,000 stores in 47 states across the United States, Target proceeded with its accelerated growth strategy by expanding into Canada (Boyar, 2014). The entrance into the Canadian market is a huge undertaking that the company believes will reap significant financial rewards in subsequent years (Target, 2014). Target has expanded into the Canadian market is because the company has reached a stage in its life cycle in which growth has diminished in recent years due to its increased size and market penetration. Nevertheless, Target’s evolution from a small enterprise to a multi-billion dollar corporation is quite …show more content…
During December 2013, Target suffered from a breach in its security systems as criminals gained access to Target’s guest credit and debit card information. This data breach contributed to large Q4 losses, which were slightly offset by insurance payouts. Consequently, the data breach incident put Target in a tough situation as it deals with ongoing litigation, regulatory fallout and negative public relations. This breach results in a loss of trust in Target’s brand and the resulting negative effect that such fear had on customers’ buying choices in 2013. Furthermore, the data breach couldn’t have come at a worse time - right in the middle of the competitive make-or-break Holiday Sale - which definitely impacted 2013 sales. In addition, the sale of its credit card portfolio and large capital investment in the Canadian market have all made an impact on Target’s results, particularly its financial performance in FY2013 relative to previous fiscal
The company has proceeded with an accelerated growth strategy in every decade since its 1967 Initial Public Offering (IPO). For example, in the 1990s, Target launched its Superstore concept, credit card services and created the “Expect More. Pay Less” brand identity. In the early 2010s, despite the presence of over 1,000 stores in 47 states across the United States, Target proceeded with its accelerated growth strategy by expanding into Canada (Boyar, 2014). The entrance into the Canadian market is a huge undertaking that the company believes will reap significant financial rewards in subsequent years (Target, 2014). Target has expanded into the Canadian market is because the company has reached a stage in its life cycle in which growth has diminished in recent years due to its increased size and market penetration. Nevertheless, Target’s evolution from a small enterprise to a multi-billion dollar corporation is quite …show more content…
During December 2013, Target suffered from a breach in its security systems as criminals gained access to Target’s guest credit and debit card information. This data breach contributed to large Q4 losses, which were slightly offset by insurance payouts. Consequently, the data breach incident put Target in a tough situation as it deals with ongoing litigation, regulatory fallout and negative public relations. This breach results in a loss of trust in Target’s brand and the resulting negative effect that such fear had on customers’ buying choices in 2013. Furthermore, the data breach couldn’t have come at a worse time - right in the middle of the competitive make-or-break Holiday Sale - which definitely impacted 2013 sales. In addition, the sale of its credit card portfolio and large capital investment in the Canadian market have all made an impact on Target’s results, particularly its financial performance in FY2013 relative to previous fiscal