Target, the 8th largest retailer in the U.S., operates nearly 2,000 stores across all 50 states. Best known for providing groceries and everyday essentials, thousands of customers head to Target in search of home decor, quality apparel, electronics, toys, and more!
Over the years, Target has undoubtedly earned the respect of American shoppers against competitors Walmart, Amazon, and Costco.
To learn more on Target’s historical facts, market trends, and insights into how business became the corporation we know today, read on!
5 Key Target Statistics
- 75% of U.S. residents live within a 10 mile radius of a Target store or SuperTarget.
- 18% of Target’s total sales in 2020 are generated by eCommerce orders; double the amount reported in the previous year.
- Customers can find Starbucks, Disney, CVS Health, and Apple mini stores at numerous Target locations.
- Target greets 2 million visitors each day.
- 409,000 individuals are currently employed at over 1,900 stores and 44 distribution centers.
Target’s History Statistics
Founded in 1902, the Dayton Company opened the first-ever Target store, a discount version of Dayton’s department stores. Here’s how Target established its strong foundations.
1. The First Target Store
In 1902 George D. Dayton explored the Midwest American markets resulting in the founding of Dayton Dry Goods Company, presently known as Target Corporation.
In a bid to strengthen its relationship with consumers, The Dayton Company seeks to enter a growing market of discount stores. In Roseville, Minneapolis, during 1962, the first Target store opened its doors combining departmental features of fashion, quality, and service!
2. Organizational Milestone
Following national scale growth, Target stores hit a groundbreaking $1billion in annual sales from its first-ever Billion-Dollar Sale, which took place during 1979, just 17 years after launch. The sale aimed to thank loyal consumers for visiting 74 store locations in 11 American states.
During the late 1960s, shortly after introducing Target stores, the company expanded into Texas and Oklahoma alongside its first distribution center based in Fridley, Minnesota. Before long, Target stores expanded into Central America and the West Coast, acquiring over 30 FedMart stores in Arizona, California, and Texas.
By the late 1980s, Target stores popped up in North Western territories of the U.S., with new units opening in Washington and Oregon. In the meantime, South Eastern expansion was in full swing, with Target entering Florida, Georgia, North Carolina, and South Carolina.
In 2011, Target announced plans to set up a shop in Canada; however, the venture was short-lived with all stores closing by 2015. Target currently runs 1,909 stores, 1 corporate head office, 5 additional offices across the nation, and 1 global capability center in Bangalore, India.
4. Target Goes Digital
Target took the initiative to modernize the way consumers purchase products, resulting in the launch of Target.com in 1999. The company was one of the first big-box retailers to enter the eCommerce landscape. For the first time, customers could access a variety of fashionable merchandise from home.
Target’s Market Share Statistics
Did you know that 75% of Americans live within a 10-mile radius of a Target location? Stark ratios heavily suggest that Target dominates the market. Let’s take a look at their status!
5. Target’s Yearly Growth
Over the years, Target’s market has sustained a steady incline, turning over sales figures each year.
Over the years, Target’s sales figures have climbed a steady incline, with yearly revenue increasing each fiscal year. In 2020, Target saw more than $15 billion in sales growth, which is more than the company’s total sales growth in an 11-year space.
In addition, 2020’s total annual revenue was $78.112 billion (USD), a 3.63% increase from 2019. But it doesn’t stop there! By the end of the 2021 fiscal year, Target has produced annual revenue of $93.561 billion, equating to a 19.75% increase from 2020! The future is bright for Target.
6. Target’s Retail Losses
Shortly after Gregg Steinhafel took the chair as CEO at Target, the United States spiraled into the most significant economic downturn the nation had seen for 50 years, having a knock-on effect on Target’s sales.
Despite a hazy future, Steinhafel successfully steered the business out of decline with an influential marketing campaign, “Expect More, Pay Less.” Furthermore, the company rolled out store credit cards, offering customers a 5% discount with each purchase.
7. The Rise And Fall Of Target Market Shares
Over the century, Target has manifested an excellent name for itself as a familiar household name since the early 1900s. At the present moment (2021), shares average out around $208 (USD), with evidence of a steady upward turn.
However, it hasn’t always looked so green. Target’s 2014 data breach saw a 40% decline in profits, damaging market shares by $206 million in losses for the quarter and shares at just 68 cents.
8. Product Segment Sales Share
Classified as a general merchandiser, it can be tricky to tell what it is customers really visit stores for. We took a look at the2020 sales share by product segment:
- Apparel and accessories = 16%
- Beauty and household essentials (including personal care, cleaning, and paper products) = 26%
- Home furnishing and decor = 20%
- Groceries = 20%
- Hardlines (includes video game hardware) = 18%
Target’s Logistic Statistics
Efficient logistics are the backbone of every successful business. Luckily, Target manages a strong network of stores and distribution centers located across the nation. Here’s how Target fulfills customer demand.
9. Target’s Distribution Centers
As of 2021, Target operates 44 distribution centers built over an average of 40 million square feet and functions in nearly every state. Target’s primary centers are located in Fontana, California; Chicago, Illinois; Atlanta, Georgia; Oakland, California; Sumner, Washington; Dallas, Texas; and Bergen, New Jersey.
10. Store-Based Fulfillment Centers
Target officials aren’t afraid to tweak the business model in response to fast-changing customer demand. More and more Target stores are becoming equipped with fulfillment facilities that allow its inventory to cope with trade.
Target stores can now satisfy customers with any of its omnichannel offerings, including curbside pick up, in-store sales, or same-day delivery.
Target’s Nationwide Operation Statistics
For over 100 years now, Target has well-established itself in the American retail sphere. However, the company name is recognized around the world. Here are a few of the ways they’ve achieved their status!
11. Target’s International Ventures
Many of us know that Target’s international endeavors didn’t exactly go to plan. Despite this, the corporation has securely established a Target innovation powerhouse as part of the Target Accelerator Program (TAP) in Bangalore, India.
It helps to administer Target’s global strategy across business sectors such as marketing, technology, human resources (a famously strong department), marketing, merchandising, supply chains, analytics, and reporting.
12. Teaming Up With Starbucks
From the offset, Target has manifested itself as an upscale discount store. As stores move further into the central regions of bustling towns and cities, Target teamed up with contemporary brands such as Starbucks to attract an urban demographic.
The partnership works wonders for store sales as Starbucks attracts affluent adults who are already willing to spend a few extra dollars on Target’s merchandise. As a result, Target is deemed better quality than discount chain competitors such as Walmart.
However, if fancy coffee isn’t quite your thing, Target stores may also include mini Apple stores, Disney, and Ulta Beauty! This causes an influx of high-income consumers which provides excellent coverage for Target’s private-label brands, leading us onto our next point.
13. Target’s Private Label And Exclusive Brands In Full Swing
When you go to Target stores, you can expect to find a wide variety of privately labeled and exclusive brands. In fact, these brands happen to be one of Target’s most effective competitive advantages.
Target currently has 48 private labels in circulation that make apparel, underwear, home features, pet products, groceries, personal care items, electronics, seasonal goods, and swimwear.
You may have noticed that Target’s assortment of offerings is considerably less than competitors Walmart and Costco. However, private labeling often provides Target with greater power over pricing. Besides, Target’s strategic pricing means that most items cost one penny higher than Walmart’s equivalents.
14. Agreement With CVS Health
If you’ve kept your eye on the retail landscape for some time now, you may already know that CVS Health acquired over 1,600 Target pharmacies across 47 states but continued to operate a store-in-store format.
Target’s pharmacies in 2015. The pharmacies sold for about $1.9 billion on the agreement that new CVS pharmacies will be included in all new Target stores.
Target’s Employee Statistics And Facts
Every business-minded individual understands that employees are the champions of your business. Here are a few statistics and facts behind Target’s workforce!
15. Number Of Target Employees
Target’s employee count has significantly grown alongside the development of the company. In 2018, 345,000 people worked for Target, sharply rising by 20,000 associates by 2020. At the start of 2021, 409,000 employees were reported at Target, equating to an 11.14% increase.
16. Employee Benefits
Providing an exceptional shopping experience is high on Target’s plan, heavily relying on employee’s shoulders. The company understands that happy employees produce quality service. Therefore, Target offers a long list of employee benefits to help staff feel supported in the workplace.
Target values positive health and well-being and offers free fruit, free eye tests, sick pay, subsidized gym memberships, free employee assistance including a mental health hotline, cycle to work scheme, family and friend policies, financial well-being support, flu vaccination vouchers, and private medical insurance.
Employees also receive benefits from Target Flex, the ability to buy or sell extra holidays, childcare vouchers, and a 10% employee discount.
17. Target Employee Satisfaction
84% of employees announce Target is a great place to work. 91% of workers said they felt welcome when they joined the team, and 87% said they felt proud to work at Target. An impressive 89% of employees felt they were given the necessary resources and equipment to carry out their job.
Challenges Target Has Faced
It hasn’t always been plain sailing for Target. From breaches to closures, the company has had to overcome its fair share of hardship. Here are a few trials and tribulations Target faced!
18. What Went Wrong With Target Canada?
Target spent $4.4 billion on an expansion mission to open stores in Canada. The first Canadian Target location opened in 2013 and quickly launched an additional 132 stores within 2 years.
Target had not implemented a practical supply chain causing major inventory issues. Some items became overstock, in-demand items became under-stocked. Meanwhile, some locations had zero stock!
Furthermore, Target was having a hard time beating its main rival Walmart, which had only recently opened stores in Canada. In total, the business racked up $2 billion in net losses. In 2015, Target Canada was going into liquidation, forcing the current CEO to declare the closure of all stores in the region.
19. Competition From Amazon And Walmart
Target has had a hard time competing with retail titans Walmart and Amazon. While Amazon rules the eCommerce platform, Walmart dominates the brick and mortar industry.
In spite of this, Target has shown ‘slow and steady wins the race’ qualities and now maintains healthier margins of 6.9% (2020), overtaking Walmart’s, which stood at 4.8%.
20. Target’s Data Breach
The data breach of 2013 was almost detrimental to Target’s future and reputation. Cyber attackers embedded malware into Target’s private systems. Hackers managed to retrieve customer credentials such as full names, phone numbers, email addresses, payment card numbers, credit card verification codes, and other sensitive data.
A total of 60 million customers were affected by the breach. Target paid an $18.5 million multistate settlement, the largest ever for a data breach, and agreed to pay $10,000 to affected customers who could show evidence.
Target’s Emerging Market Trends And Statistics
As an innovative figure in the retail industry, Target has shown resilience by modernizing certain aspects of its model when demand shifts. Keep reading to find out how Target operates in an emerging market!
21. Big Investments Into Small Stores
Target has begun slimming down stores to fit on city blocks, commercial districts, and college towns to penetrate city centers. In 2020, Target started experimenting with smaller (6,000 square feet) sized stores to reaffirm efforts of reaching urban neighborhoods.
In the upcoming year (2021), Target plans to open nearly three dozen small-format locations with stores starting as small as 15,000 square feet. Currently, the average small-scale Target covers 40,000 square feet of land, just a third of regular stores at 130,000.
22. Ecommerce Focus
Ecommerce has been a booming source of income for the retail giant, Target. Approximately 18% of its total sales (2020) were generated by online orders alone compared with 9% in 2019 and 7% in 2018!
23. Modern Means Of Delivery
There are multiple methods of delivery available at Target. Since transforming stores into fulfillment centers, delivery is said to be swift and efficient. Customers can now claim same-day delivery via Shipt Shopper.
Fitting in with the lives of its urban demographic, Target facilitates in-store and drive-up pickup, which is easily scheduled on the app.
Despite the challenges Target has faced, it remains one of the largest retailers in the U.S. Evidence of steady growth suggests a promising future for the company as they successfully move models into densely populated areas. Although slightly behind its competitors, Target constantly shows initiative to challenge the likes of Walmart and Amazon.