Case Study : Target Corporation : Course Project

George Draper Dayton: A banker and real estate investor, George Draper Dayton, who is a native New Yorker saw potential growth in the Midwest markets and after much research decided that Minneapolis has the greatest potential for growth. In 1902 Dayton decided to be a partner in Goodfellow’s Dry Goods Company, the fourth largest department store in Minneapolis, Minnesota. However, about a year later he takes sole ownership of the store and renames the store to Dayton Dry Goods Company. Dayton’s principles and belief in the “the higher ground of stewardship” soon played into how Dayton Dry Goods Company would be recognized. The store became known for dependable merchandise, fair business practices, and generous spirit of giving. Dayton, as president, was well involved in the management of the store up until his death in 1938. His son and grandsons would later take over leadership and has influenced the stores growth into the nationwide retailer position it has today. Throughout the years, many events occurred that influence the business path Dayton Dry Goods Company took, currently known as Target Corporation.

Target Corporation was founded in 1902 in Minneapolis as the Dayton Dry Goods Company, though the first Target store was opened in 1962 in nearby Roseville, Minnesota. Not until 1995, was the first Super Target was built. In 1999 Target launched their website Target.com. Target grew and eventually became the largest division of Dayton Hudson Corporation, culminating in the company being renamed as Target Corporation in August 2000. The Corporation became a major retailing power house with $52.6 billion in revenues from 1,397 stores in 47 states by 2005. Realizing a 12.1% sales growth over the past five years target had announced plans to continue its growth by opening

Headquartered in Minneapolis Minnesota, Target Corporation is one of the largest chains of retail stores in United States and Canada (Stone, 1995). Founded in 1902, the chain now has more than 360,000 employees worldwide. The company operates nearly 1925 stores out of which 1795 stores are in the US and 130 stores are in Canada (NASDAQ, 2014). The business prides itself in a diverse portfolio of merchandise that their outlets houses, ranging from dry groceries to electronics, furniture, apparel and much more. Its distribution networks make use of third party vendors, direct shipping as well as distribution centers. It also operates a successful e-store target.com which offers customers a virtual one-stop shop for their needs.

In 1902 Target Corporation was founded by George Draper Dayton. He was a banker and real estate agent. After several years in banking and real estate he purchased land on Nicollet Avenue and formed the Dayton Dry Goods Company, today known as Target Corporation.

Target was founded in 1902 first named Dayton Dry Goods Company by founder George D. Dayton (Target, 2015). After a lot of expansion and growth, Dayton Dry Goods was renamed to Target in 1961 after a mass marketing move to cater to value-oriented shoppers that wanted high quality items. In 1962, the Target bullseye symbol was adopted (Target, 2015). Over the years Target began to expand and grow throughout the entire United States. In 1983, Target was recognized for their community involvement (Target, 2015). Target has grown with technology as being the first mass merchandiser in 1983 to implement UPC scanning in their stores and distributors. In support of education, Target

Target Corporation did not started out as Target but Dayton Department Store. The founder of Dayton Department store is George D. Dayton. Mr. Dayton, was banker and realtor from New York. In 1902 Mr. Dayton decided to move to Minneapolis and open up his department stores. In 1960 the Dayton family had a new vision and decided change from a department store to a “discount retailing.” In 1962, President/CEO Doug Dayton, open the first four Targets in Roseville, Saint Louis Park, Crystal and Duluth, Minneapolis (corporate.target 2014)

After the recession, Target’s value proposition shifted to simply offer affordable options in a wide array of product areas. However, now with better economic conditions and without the ability to offer lower prices than its affordable retail competitors, such as Walmart, and in order to stay relevant and refresh the company, Target needs to reposition itself as the high-quality concept and style-oriented retail store it was once known for.

The Target Corporation formerly known as “The Dayton Dry Goods Company” is a major retailing company that was founded in 1902 in Minneapolis, Minnesota by George Draper Dayton. It is ranked the second largest discount retailer in the United States and ranked thirty- sixth on the Fortune 500 as of 2013. The Target Corporation has been serving this nation with the best price possible goods since their expansion from “Dayton” and is continuously winning the hearts of consumers with their dedication and service. A phenomenal merchandising strategy and cross channeling has enabled this upscale discounter to serve their purpose of customer loyalty and fulfill their promise of “Expect more and Pay less”.

Target Corporation’s mission statement is to make their company the most sought after shopping destination by delivering a great guest experience with the most innovated technologies and quality merchandise. Target is the second largest general merchandise retailer in America. Target was founded by George Draper Dayton, in 1902, with the name Goodfellow Dry Goods. In 1903, Mr. Dayton changed the name to The Dayton Compay. Furthermore, the first Target store opened in 1962 in the Minneapolis, Minnesota which became the main headquarters. It grew to be the largest division of the Dayton-Hudson Corporation and was subsequently renamed the Target Corporation in 2000. Target anticipates staying ahead by challenging the company to be the most efficient and intellectual upscale company in the retail industry (Target Corporation, 2016).

Target Corporation is a retail chain specializing in household goods, clothing, food, and accessories at discounted prices. The retail chain’s history started back in 1902 as Goodfellows and in 1910 as The Dayton Company. Initially, the chain specialized in “furnishings, fabrics and decorations for business and other public institutions” (“Target Corporation,” 2016, p. 5). Eventually, Target went public in 1967 and on to acquire Mervyn’s in the 1970s where they became the seventh largest retailer in the United States. Target operates in the United States, where it is headquartered in Minneapolis, Minnesota and as of January 31, 2015 Target employs over 300,000 people. “The company recorded revenues of $72,618 million in the financial year ended January 2015, the operating profit of the company was $4,535 million, [and] the net profit was $2,449 million” (“Target

Target Corporation is an upscale discounter providing high quality, on-trend merchandise at attractive prices in a clean, spacious and guest friendly store. Target Corporation also operates their online business at Target.com . According to the company' history report Target began as Marshall Field & Co in 1881 then in 1902 George Dayton opened a Goodfellows in downtown Minneapolis. One year later they founded their first Dry Goods Store and in 1911 they became known as the Dayton Company. In 1962 they opened their first Target store selling discounted merchandise. In 1967, the Dayton Company had their first public offering of common stock, and then in 1969 they merged with J.L Hudson Company to become the

Target Corporation has recognized itself as one of the top retailers in the United States market on the basis of excellent service quality, customer experiences, operational excellence, strong financial position, and a wide array of product offerings. Through its high degree of service orientation at physical outlets and adoption of fair business practices, Target Corporation has become the most distinctive retailer in the eyes of its potential customers. Being one of the top-notch retailers in the United States, Target Corporation has to carefully strategize on its business operations and marketing tactics so as to keep itself in the row of competitive brands of the industry.

In my personal opinion, Target should continue to develop a specific portfolio that is specifically targeted to its customer’s needs and likes, while focusing on maintaining the same product quality and variety for each store brand. Through its marketing strategy, the retailer has to assure the consumer they are purchasing the same quality product as if they were buying a national brand at a more affordable price; which at the end is more convenient for the consumer and does not have to sacrifice quality. Target should also expand to the South and Northeast where there are still plenty of attractive locations with no Target presence. This will attract more customers and consequently strengthen its store brands.

In the year1962 the Target Organization was established by George Dayton who categories the organization as a concession retailer within the townships of Roseville, Minnesota. A decade later after the organization established it footing within the industry, the small subsidiary developed into the biggest division within The Dayton Corporation. The company advanced from a single discount store to earning its successes over the years from conventional leased superstore practices and discount vending, in addition to general retailing the

Target is an upscale discounter that provides high-quality, trendy merchandise at attractive prices in clean, spacious and guest-friendly stores. In addition, Target operates an online business, Target.com. It all started in 1902, when George Dayton joined in partnership with Goodfellow’s Dry Goods Company, the fourth biggest department store that is located in Minneapolis, MN. Dayton, wanting to be more involved in the company bought out Goodfellow’s to become sole owner and President of Dayton Dry Goods Company (Target Corporation, 2014). Travel on down through the years as Daytons continues to grow, until 1962. That was the year an icon was born, its name is “Target.”