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Target Financial Analysis

In: Business and Management

Submitted By potaytoesz
Words 2287
Pages 10
Taylor Johnson
Financial Management 2201
Company Analysis Paper
June 22, 2015

Target Corporation is the second-largest discount retailer in the world, trading the company’s stocks on the New York Stock Exchange (NYSE) with the ticker symbol ‘TGT’. Target sells general merchandise ranging including clothing, home goods, beauty products, electronics, and both perishable and non-perishable food items. Most Target stores also include pharmacies, gift registries, and food services such as Pizza Hut and Starbucks. While classified as a discount store, the company is colloquially known as a superstore where you can buy everything you need in one convenient place. Target’s biggest competitors are Wal-Mart, Meijer, and Kmart.
Demand for Target’s products and services is growing rapidly, with Target creating new store formats, such as City Target (coming to Boston in 2015) and Target Express to meet the needs of customers in various markets. With instant-gratification being a common customer expectation, Target Express, 1/6th of the size of a normal store, allows the company a competitive edge over retailers such as Walgreens and CVS. In a cost-conscious economy, consumers understand that Target offers goods such as electronics and groceries at lower prices than other retailers in each respective industry do. City Target, on the other hand, operates as a store with less-bulky items that would not easily fit in to a small apartment. With customers demanding easy accessibility, Target’s reputation as a “superstore” allows customers to save time by purchasing diverse items, such as a sweater and a spatula, in one location.
In December of 2013, Target confirmed a breach of customer credit card data, resulting in the second largest breach of a retailer in history. By the end of February, Target reported that the company’s profit had plunged 46% in the fourth quarter of...

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