Everything about Target Corporation totally explained
Target Corporation, originally known as the
Dayton Dry Goods Co., is an
American retailing company that was founded in
Minneapolis, Minnesota, in 1902. In 1962, the first
Target store was opened in
Roseville, Minnesota. It is the fifth largest retailer by sales revenue in the
United States behind
Wal-Mart,
The Home Depot,
Kroger and
Costco. The company is ranked 31st on the
2008 Fortune 500. Target operates its retailing business exclusively in the United States. It is a rival and competitor of
Kmart and Wal-Mart.
Target was listed in Internet Retailer's list of the top 500 retail web sites in 2007. Formerly traded as Dayton Hudson, Target is a component of the Standard and Poor's 500 index.
History
1902-1962: Dayton's
In 1902, George Dayton constructed a six-story building in downtown Minneapolis and convinced R.S. Goodfellow Company to move its Goodfellows department store into it. The store's owner, Reuben Simon Goodfellow, retired and sold his interest in the store to George Dayton. In 1903, the store changed its name to the Dayton Dry Goods Company, and it changed its name again to the Dayton Company in 1910. In the 1950s, it acquired the
Portland, Oregon-based
Lipmans department store company and operated it as a separate division. In 1956, the Dayton Company opened
Southdale, the world's first fully-enclosed two-level shopping center in
Edina, Minnesota, a suburb of Minneapolis. The Dayton Company also became a
retail chain by opening its second Dayton's store in .
1962-1971: The founding of Target
In 1962, the Dayton Company, using a concept developed by
John F. Geisse, entered discount merchandising by opening its first Target discount store in
Roseville, Minnesota, a suburb north of
Saint Paul. The name "Target" originated from Dayton's publicity director, Stewart K. Widdess, and was intended to prevent consumers from associating the new discount store chain with the department store. The new subsidiary, Target Stores, ended its first year with four units, all in Minnesota. Target Stores lost money in its initial years, but in 1965 it reported its first gain with sales reaching $39 million, allowing a fifth store to open in Minneapolis. In 1966, Bruce Dayton launched the
B. Dalton Bookseller specialty chain, which became the largest hardcover bookseller in the United States.
In 1968 Target changed its bullseye logo to the one currently in use, and expanded into
St. Louis, Missouri, with two new units. That year, Target Stores experienced a transition phase: Target's president and co-founder, Douglas J. Dayton, went back to the parent Dayton Corporation and was succeeded by William A. Hodder, and senior vice president and cofounder John Geisse left the company. He was later hired by St. Louis-based
May Department Stores, where he founded the
Venture Stores chain. The Dayton Company also merged with the Detroit-based
J.L. Hudson company that year, to become the Dayton-Hudson Corporation consisting of Target and five major department store chains:
Dayton's,
Diamond's of
Phoenix, Arizona,
Hudson's, John A. Brown of
Oklahoma City, Oklahoma, and
Lipmans. In 1970, Target Stores added seven new units, including two units in
Wisconsin, and the 24-unit chain reached $200 million in sales.
1971-1982: Turnaround
In 1971, Dayton-Hudson acquired sixteen stores from the Arlan's department store chain in
Colorado,
Iowa, and
Oklahoma. That year, two of those units reopened as Target stores, and in 1972 the other fourteen were reopened to make a total of 46 units. This caused the chain to experience another major transition phase: It reported its first decrease in profits since its initial years, as a result of the chain's rapid expansion and the top executives' lack of experience in discount retailing. Its loss in operational revenue was due to overstocking and carrying goods over multiple years regardless of inventory and storage costs. By then, Dayton Hudson considered selling off the Target Stores subsidiary. In 1973, Stephen Pistner, who had already revived Team Electronics and would later revive
Montgomery Ward and
Ames, was named chief executive officer of Target Stores, and Kenneth A. Macke was named Target Stores's senior vice president. The new management saved the chain by marking down merchandise to clean out its overstock and by allowing only one new unit to open that year. In 1975, it opened two stores, reaching 49 units in nine states and $511 million in sales. That year, the Target discount chain became the company's top revenue producer. Floyd Hall succeeded Kenneth Macke as chairman and chief executive officer of Target Stores. Bruce Allbright left the company to work for
Woolworth, where he was named chairman and chief executive officer of
Woolco.
Bob Ulrich also became president and chief executive officer of Diamond's Department Stores in 1981. In addition to the Ayr-Way acquisition, Target Stores expanded by opening fourteen new units and a third distribution center in
Little Rock, Arkansas, to a total of 151 units and $2.05 billion in sales. That year, Bruce Allbright returned to Target Stores as its vice chairman and chief administrative officer, and the chain expanded to 167 units and $2.41 billion in sales. The 33 units acquired from FedMart were reopened as Target stores in 1983. Also in 1983, it founded the Plums off-price apparel
specialty store chain with four units in the Los Angeles area, with an intended audience of middle-to-upper income women.
In 1984, it sold its Plums chain to
Ross Stores after only 11 months of operation, and it sold its Diamond's and John A. Brown department store chains to
Dillard's. Meanwhile, Target Stores added nine new units to a total of 215 stores and $3.55 billion in sales. Floyd Hall left the company and Bruce Allbright succeeded him as chairman and chief executive officer of Target Stores. In May 1984, Bob Ulrich became president of the Dayton Hudson Department Store Division, and in December 1984 became president of Target Stores. It operated four Smarts units out of former Target stores in
Rancho Cucamonga, California,
Des Moines, Iowa,
El Paso, Texas, and
Indianapolis, Indiana that each closed out merchandise in nearby distribution centers. In 1994, Kenneth Macke left the company, and Bob Ulrich succeeded him as the new chairman of Dayton-Hudson. Target's store count rose to 796 units, and sales rose to $20.2 billion. Target Stores grew to 851 units and $23.0 billion in sales.
2000-Present: Target Corporation
In January 2000, Dayton Hudson Corporation changed its name to Target Corporation and its ticker symbol to TGT; by then, between 75 percent and 80 percent of the corporation's total sales and earnings came from Target Stores while the other four chains—
Dayton's,
Hudson's,
Marshall Field's, and
Mervyns—were used to fuel the growth of the discount chain, which expanded to 977 stores in 46 states and sales reached $29.7 billion by the end of the year. In
2001, it announced that its Dayton's and Hudson's stores would operate under the Marshall Field's brand, which was the most recognizable name in the Department Stores Division. Target Stores expanded into
Maine, reaching 1053 units in 47 states and $33.0 billion in sales. In 2002, it expanded to 1147 units, which included stores in San Leandro (Bayfair Mall), Fremont, and Hayward, California, and sales reached $37.4 billion, and in 2003 it reached 1225 units and $42.0 billion in sales.
In May
2005, Target began operation in
Bangalore,
India, and these operations currently support all Target business units. In 2006, Target completed construction of the Robert J. Ulrich Center in Embassy Golf Links in Bangalore, and Target plans to continue its expansion into India with the construction of additional office space at the Mysore Corporate Campus.
On
January 9,
2008, Bob Ulrich announced his plans to retire as CEO, and named Gregg Steinhafel as his successor. This is due to Target Corporation policy which requires its high ranking officers to retire at the age of 65. Ulrich's retirement as CEO was effective May 1st, but he'll remain the chairman of the board until the end of the 2008 fiscal year.
Subsidiaries
Today, Target Corporation has its headquarters on
Nicollet Mall in Minneapolis, near the site of the original Goodfellows store. It operates its main retail subsidiary, Target Stores, under the banner of 'Target'. The company owns several other subsidiaries, which include:
- Target Financial Services (TFS): issues Target's credit cards, known as the Target REDcard, consisting of the Target VISA and the Target Card (formerly the Target Guest Card), issued through Target National Bank (formerly Retailers National Bank) for consumers and through Target Bank for businesses. Target Financial Services also oversees GiftCard balances. In October of 2007 Target launched its PIN based debit card, the Target Check Card. The Target Check Card withdraws funds from the customer's existing checking account, and allows for up to $40 "cash back". The check card allows customers to accumulate points towards Target Rewards, as well as designate a school for Target's Take Charge of Education program, and accumulate pharmacy rewards. Unlike the Target Card and the Target Visa, customers don't receive an instant 10% discount for opening the account.
- Target Sourcing Services/The Associated Merchandising Corporation (TSS/AMC): This global sourcing organization locates merchandise from around the world for Target and helps import the merchandise to the United States. Such merchandise include garments, furniture, bedding, and towels. TSS/AMC has 27 full-service offices, 48 quality-control offices, and seven commissionaires located throughout the world. TSS/AMC employs 1,200 people. Its engineers are responsible for evaluating the factories that do business with Target Corporation for quality, as well as labor rights and transshipment issues. It was acquired by Target Corporation in 1998, and was founded in 1916, previously owned by the clients it served. It also acts as a buying office for Saks Incorporated, Bloomingdale's, Stage Stores Inc., TJ Maxx, and Marshalls. Currently, Target Commercial Interiors has an unusually high market share of Fortune 500/1000 business customers, and are expanding to attract small to medium sized businesses, as well as home offices. This subsidiary has six showrooms in Illinois, Minnesota, and Wisconsin, including a first-of-its-kind retail concept store and showroom in Bloomington, Minnesota that opened on June 23 2005.
- Target Brands: owns and oversees the company's private label products, including the grocery brands Archer Farms and Market Pantry, Sutton & Dodge, their premium meat line, and the electronics brand Trutech. In addition, Bullseye Dog is a trademark, and the Bullseye Design and 'Target' are registered trademarks of Target Brands.
- Target.com: owns and oversees the company's e-commerce initiatives, such as the Target.com domain. Founded in early 2000 as target.direct, it was formed by separating the company's existing e-commerce operations from its retailing division, and combining it with its Rivertown Trading direct marketing unit into a stand-alone subsidiary. After the company sold Marshall Field's and Mervyns in 2004, target.direct became Target.com. The domain target.com attracted at least 288 million visitors
annually by 2008 according to a Compete.com survey.
Target Stores
Target Corporation's main retailing subsidiary,
Target Stores, is a United States discount
retail chain consisting of 1,591 stores (as of
October 10,
2007). It has units in all states except for
Alaska,
Hawaii, and
Vermont, operating under the mastheads of Target, Target Greatland, and SuperTarget. The chain was founded by Douglas J. Dayton and
John Geisse, and the first Target store "T-1" opened on
May 1,
1962 in
Roseville, Minnesota. Target Corporation has aggressive plans to have 2,000 stores open by the year 2010, including expanding to Alaska and Hawaii.
Target's retail operations are limited to the United States. Aside from the leased name and logo, the
Australian retail chain of the same name isn't related to Target Corporation.
Target
Target is a chain of
discount department stores that are about 95,000 to 135,000 square feet (12,000 m²) and carry hardlines ("regular" products and goods), softlines (clothing), and a limited amount of groceries, mostly non-perishable. Specifically, Target stores carry clothing, shoes, jewelry, health and beauty products, electronics, compact discs,
DVDs, bedding, kitchen supplies, sporting goods, toys, pet supplies, automotive supplies, hardware supplies, and food. They also carry seasonal merchandise such as patio furniture during the summer and
Christmas decorations during November and December. Many stores may also have one-hour photo processing, a portrait studio, an optical store, a
pharmacy, and a garden center. Stores opened or re-modeled in 2004 or later also include the expanded snack bar that's featured in Target Greatland locations. These generally include a
Starbucks Coffee shop, a
Pizza Hut Express, and a
Taco Bell Express in addition to Target's
Food Avenue. It has also been reported that
Cold Stone Creamery and Target have signed a deal to test in-store ice cream shops in four stores.
The first few Target stores included leased supermarkets in addition to general merchandise, which during the time was a common practice by discount retailers as they attempted to offer a one-stop shopping experience to customers. Douglas Dayton stated in 1967 that "we believe that the discount-grocery store is a necessary ingredient in what we offer the customer. After all, food sales are about 40% of all department store-type merchandise sales, so the two kinds of stores go hand-in-hand and are what people think of when they think of a discount store." However, by the end of the decade, Target started moving away from this general merchandise and leased supermarket practice. In 1969, Target opened its first store consisting of only general merchandise. Target has also partnered with
Yahoo! Photos for online photo services, including ordering prints online for one-hour store pickup. This ended in September of 2007. Target Photo now partners with
Kodak Gallery and
Shutterfly.
Target Greatland
Target Greatland is a chain of general merchandise
superstores that are about 150,000 square feet (14,000 m²). Like
SuperTargets (below), they carry a larger selection of general merchandise than a basic Target store; however, though they carry more groceries than a typical Target store, they don't have a full-line of groceries like
meat,
bakery,
deli,
produce and
dairy. The first Target Greatland opened in
Apple Valley, Minnesota, in 1990, but has since been remodeled and expanded, becoming a SuperTarget. Throughout 2005, the company reorganized the sales floor, allowing them to double the grocery space they'd before. Prominent features include double entrances on single level stores along with an expanded snack bar. The snack bar may include a
Pizza Hut Express,
Taco Bell Express, and/or a
Starbucks. The construction of new Target Greatland stores has been phased out in favor of building SuperTarget prototypes or regular Target prototypes with expanded sales floors. The last Target Greatland opened in 2006 and is located in
Staten Island,
New York City.
SuperTarget
SuperTarget is a chain of
hypermarkets that are about 175,000 square ft. (16,000 m²). Like Target Greatland, SuperTarget features double entrances on one story stores; some also have between the double entrances a merchandise loading lane as a prominent feature of the building. The store logo often spells "Super" in green script, but recently, newer locations are signed in red block letters in the
Helvetica font that the word "Target" uses in favor of a more streamlined red "Target Brand" look. SuperTarget stores, unlike Target and Target Greatland, carry all the same essentials, including a full service grocery with a bakery, meat department, fresh produce and a SuperDeli. Most old locations and all new SuperTarget stores will include a Target Optical. Many SuperTarget stores may also feature a
Starbucks Coffee shop, a
Pizza Hut Express, a
Taco Bell Express, (which is currently being phased out in all Target locations)
Jamba Juice, a Target Pharmacy, The Studio @ Target (a portrait studio), Target Photo (a one-hour photo processing lab), and a
Wells Fargo Bank or
U.S. Bank. Select few stores in Maryland and the Twin Cities also have a new concept inside called Target Clinic.
(External Link
) Target Clinic is similar to Minute Clinic found in
drug stores such as
Walgreens or
CVS/pharmacy. Unlike many other hypermarkets in the
United States (such as
Wal-Mart Supercenters and
Meijer), SuperTargets are not open twenty-four hours.
In the past, some SuperTargets featured an
E*TRADE trading station instead of a Wells Fargo Bank. However, in June 2003, E*TRADE decided to remove all E*TRADE branches from their SuperTarget locations without advance notice. This sudden move wasn't initiated by Target Corporation.
Mitchell Caplan, E*TRADE's CEO at that time, said that "We were not able to make it into a profitable distribution channel...[w]e're better off exiting." E*TRADE also sent a letter of notification to their customers informing them about this change.
The first SuperTarget opened in
Omaha, Nebraska in 1995, and the second SuperTarget opened in
Lawrence, Kansas, later that same year. As of October 10, 2007, Target operated 210 SuperTarget stores in 22
U.S. states, the majority of those are in Texas and Florida, with sizable numbers in Minnesota and Colorado. This concept has also been used to convert Target stores from former
Bullock's,
Montgomery Ward,
Robinson's,
Robinsons-May and
Younkers stores.
Distribution centers
As of October 10, 2007, Target Corporation operated 26 distribution centers across the
United States.
Differentiation
Target Corporation competes directly against other discount retailers, mainly
Wal-Mart and
Kmart. Since its founding in 1962, it has intended to differentiate its stores from its competitors by offering what it believes is more upscale, trend-forward merchandise at low cost, as opposed to the traditional concept of focusing on low-priced goods. Douglas J. Dayton, one of the Dayton brothers, explained John Geisse's concept:
), as though it were an upscale boutique. This trend is incorrectly believed to have been started by
Oprah Winfrey, when she used the French pronunciation to refer to the store on her television show; it has actually been traced back to 1962, the year the first Target store opened. This pronunciation has also led some people to incorrectly believe that the company is French-owned.
Target has many exclusive deals with various designers and name-brands, including
Michael Graves,
Mossimo Giannulli,
Fiorucci,
Liz Lange, and
Converse among others. To further increase their fashion profile, Target also created its fashion-forward
Go International line, which hires famous designers to design collections available only for a few months. Target, after hiring architect Michael Graves to design the scaffolding used to renovate the
Washington Monument and contributing $6 million
USD to the restoration plan, introduced its first designer line of products in 1999, the Michael Graves Collection of housewares and home decor products.
Wal-Mart and
Kmart have followed Target's lead by signing exclusive designers to their stores as well. Target also partners with well-established national brands to create exclusive collections for its stores. Recently,
Sony created a line of electronics under the Sony LIV name geared toward women. The collection included a CD player that resembled a purse and a CD player that was equipped to be mounted under the kitchen counter. Another example of this is Target having an exclusive deal with
Food Network for selling DVDs of TV shows featuring popular chefs such as
Rachael Ray,
Alton Brown, and
Paula Deen. In July 2006, Target started selling two-tone pink edition
Apple iPods through a partnership with
Colorware. Sometimes manufacturers will create red-colored items, exclusively for Target. In 2002,
Nintendo produced a red
special edition variant of the
Game Boy Advance, which featured the Target logo above the screen.
In
2005,
IFC began a partnership with Target to promote a selection of independent films, both in Target stores and on
IFC Monday nights at 9PM Eastern. Originally titled
IFC Cinema Red, the promotion was rebranded
The Spotlight in 2007.
GiftCards
The Target GiftCard is the retailing division's
stored-value card or
gift card. Target sells more gift cards than any other retailer in the United States and is one of the top sellers, by dollars and units, in the world. The unique designs of their cards contribute to their higher sales, as well as Target's policy of no expiration dates or service fees. Past and current designs include
lenticular, "scratch and sniff" (such as peppermint during the
Christmas season),
glow in the dark,
LED light-up, a gift card on the side of a
bubble blower, a gift card that can function as a
CD-ROM, and even a giftcard that allows the sender to record a voice message. A current environmentally friendly giftcard is made from
bioplastic manufactured from corn. Target rolled out a new MP3 Player giftcard for the 2006 holiday season. It holds 12 songs and must be purchased with an initial value of at least $50.
Many of these design ideas are not used by any other retailer in the United States. It is noted that some of these unique design ideas are
patented, and these patents are assigned to the Target Brands subsidiary. For example, some such Target GiftCard designs feature a wooden front side. On
May 24,
2005, the
United States Patent and Trademark Office granted US patent D505,450 for the "ornamental design for a credit or stored value card with wood layer" to inventors Amy L. Lauer and John D. Mayhew. US patent 7004398, for the "stored-value card assembly including a stored-value card, an edible product, and a wrapper", was granted to Michael R. Francis and Barry C. Brooks on
February 28,
2006. Both of these patents have been assigned to Target Brands, Inc.
Target GiftCards are also Collectors Items. Some of the first issued gift cards have a value of over $300.00 just for the card - even though the card doesn't have any money on it. Every year Target introduces new Holiday GiftCards. In 2007 Target's Holiday GiftCards featured a wind-up flashlight; a musical gift card; a gift card that lights up; and a scented gift card.
ClearRx
In 2005, Target introduced a major revision of
prescription bottles, which it calls the
ClearRx system. The redesigned bottles are color coded, flattened-out and turned upside down providing more room for the label. This system was based on the patent by student Deborah Adler and was named one of
Time Magazine's Most Amazing Inventions of 2005.
Philanthropy
Target Corporation is consistently ranked as one of the most
philanthropic companies in the country. It ranked #11 in Fortune Magazine's "Top 20 Most Admired Companies" for 2007, largely in part to the donation efforts of the company as a whole. According to a November
2005 Forbes article, it ranked as the highest cash-giving company in America in percentage of income given (2.1%). Target donates around 5 percent of its pre-tax operating profit; it gives over $3 million a week (up from $2 million in years prior) to the communities in which it operates. It also gives a percentage of charges from its Target Visa to schools designated by the cardholders. To date, Target has given over $150 million to schools across the
United States through this program. Target's corporate by-laws state it must give 5 percent of its pre-tax profits to charity.
Further evidence of Target's philanthropy can be found in the Target House complex in
Memphis, Tennessee, a long-term housing solution for families of patients at the city's
St. Jude Children's Research Hospital. The corporation led the way with more than $27 million in donations, which made available 96 fully furnished apartments for families needing to stay at St. Jude over 90 days.
Target has a standard no-solicitation rule at its properties, as it seeks to provide a "distraction-free shopping experience for its guests." Exemptions to this policy were previously made for the
Salvation Army red kettles and bell-ringers outside Target stores during the holidays through Christmas. In
2004, however, Target asked the organization to explore alternate methods to partner with Target. Target donates to local Salvation Army chapters through its grant program and annually to the
United Way of America (the Salvation Army is a member of the United Way coalition).
In 2005, Target and the Salvation Army created a joint effort called "The Target/Salvation Army Wish List," where online shoppers could donate goods to the organization for Hurricane victims by buying them directly from Target.com between
November 25,
2005, and
January 25,
2006. In 2006, they created another joint effort called "The Target/Salvation Army Angel Giving Tree," which is an online version of the Salvation Army's Angel Tree program; in addition to donating proceeds made from the sales of limited edition Harvey Lewis angel ornaments within Target's stores. During the Thanksgiving holiday of 2006, Target and the Salvation Army partnered with magician
David Blaine to send several families on a shopping spree the morning of
Black Friday. The challenge held that if Blaine could successfully work his way out of a spinning gyroscope by the morning of Black Friday, then several families would receive $500 shopping certificates. The challenge was completed successfully by Blaine.
During disasters, Target has been a major benefactor for relief efforts. Target provided monetary and product donations during the
September 11th terrorist attacks on the
U.S.; it also donated money for relief efforts for the
2004 tsunami in South Asia. Most recently, Target donated $1.5 million (
U.S.) to the
American Red Cross in the aftermath of
Hurricane Katrina in 2005. It also allowed its store properties in the affected area to be used as command centers for relief organizations. It also donated supplies such as water and bug spray. Besides these major disasters, Target also regularly lends support to disasters that are not as well known or only affect a regional area.
Environmental Record
Target Corporation agreed to reduce their sales on all materials containing Vinyl Plastic also known as PVC that contains polyvinyl chloride. Testers found toxic lead and phthalates and large amounts of PVC in toys, lunchboxes, baby bibs, jewelry, garden hoses, mini blinds, Christmas trees, and electronics.Target along with other retailers are beginning to reduce building energy efficient storefronts and reducing waste with recycling programs.
Target released a 13-page report in 2007 that outlined their current and future plans for becoming more earth-friendly according to
LEED. Such efforts include installing sand filtration systems for the store's wastewater. Recycling programs will be aimed at garment hangers, corrugated cardboard, electronics, shopping carts, shrink wrap, construction wastes, carpeting and ceiling tiles and roofing materials. All stores in
Oklahoma will be partnered with
Oklahoma Gas & Electric to exclusively use wind power for all Target stores in order to reduce
Carbon emissions. Stores nationwide use only
LED and
fluorescent lights and low-flow restrooms that reduce waste water by 30%. Some Target stores are installing roof gardens or
green roofs, which absorb storm water and cut down on
surface runoff, mitigate temperature fluctuations and provide habitats for birds. There are currently four green roof Target stores in
Chicago, IL.
Target also carries over 700 organic and alternative products from brands such as
Archer Farms,
Burt's Bees and
Method Products. They also sell clothes made from organic cotton, non-toxic cleaners, low-energy lighting and electronics, non-toxic and non-animal tested cosmetics and furniture made from recycled materials. As of June, 2007, Target has been offering reusable shopping bags as an alternative to disposable plastic bags. Even the Target gift card is made from corn-based resins. All of the stores' packaging is done with a modified paperboard/clamshell option and has goals for phasing out plastic wrap completely .
In collaboration with
MBH Architects, Target's first "green" building was a 100,000+ square foot Target store, built in 1995 in
Fullerton, CA. It was a part of the EPA Energy Star Showcase for its use of skylights that cut the original energy consumption by 24% with a 5 year payback . Target and MBH Architects were awarded the "Green Lights Partner/Ally of the Year Award" .
Target Forensic Services
In 2006,
The Washington Post revealed that Target is operating two sophisticated criminal
forensics laboratories, one at their headquarters, the other in Las Vegas, NV. Originally, the lab was created as an internal need for the company to investigate instances of theft and fraud and other criminal actions that have occurred on its own properties. Eventually, the company began offering
pro bono services to law enforcement agencies across the country. Target's Forensic Services has assisted agencies at all levels of government, including Federal agencies such as the
United States Secret Service,
Bureau of Alcohol, Tobacco and Firearms and the
Federal Bureau of Investigation. The labs have become such a popular resource for law enforcement that Target has had to restrict the cases it assists in to only violent
felonies.
Criticism
Practices that cause some concern include lack of a
living wage certification, lack of
labor unions, and Target's contribution to
urban sprawl. Liza Featherstone, contributing editor to the "The Nation" magazine and author of
Selling Women Short: The Landmark Battle for Workers' Rights at Wal-Mart, stated the following in an interview.
In addition to Target's lack of
labor unions, several employees have stated that during new employee training sessions, videos and lectures were given with strong anti-union messages. Often managers have threatened employees with losing their job if they're caught trying to organize a union, similar in fashion to
Wal-Mart's practices.
In 2002, the company was alerted to sporting caps and shorts having the number "88" embroidered on them. This number has been used by known
white supremacist groups as slang for "
Heil Hitler." A customer informed the company of the offensive merchandise. Target didn't pull the merchandise or issue public apology until the
Southern Poverty Law Center echoed its concern and the media began reporting on the issue.
In 2004, the company's decision to bar the Salvation Army from soliciting donations at its stores generated much negative publicity (see
Philanthropy section above). In addition, Target still refuses to let
Toys for Tots collect toys on their properties.
In 2005,
Planned Parenthood protested Target policy involving a
conscience clause that allows pharmacists to refuse to dispense the emergency contraceptive, Plan B
Levonorgestrel, based on religious beliefs as long as the employee ensures that the prescription is filled by another pharmacist in a timely manner. Defenders of Target applaud the company for upholding the employee's
freedom of conscience, while critics feel this policy fails to uphold the pharmacist's
duty of care.
In November 2005, the
American Family Association criticized Target and other retailers for not using the word "Christmas" in its
holiday advertising. Target responded by introducing words like "Christmas" and "
Hannukah" on its website and in-store signage, and by showing holiday ads that included the phrase "
Merry Christmas".
In July 2007, Target Corporation was fined $120,000 by the
United States Environmental Protection Agency for selling outlawed, aerosol confetti string. The EPA said that the fine stemmed from Minneapolis-based Target's sale of Horrible Spooky String, a children's sprayable confetti product that violates the Clean Air Act because it contains banned
hydrochlorofluorocarbons (HCFC). Such chemicals deplete the ozone layer and their sale or distribution in "non-essential" products has been prohibited in the United States.
Diversity
Target defines diversity as individuality. The company state this individuality may include a wide spectrum of attributes such as personal style, age, race, gender, ethnicity, sexual orientation, language, physical ability, religion, family, citizenship status, socio-economic circumstances, education and life experiences.
The Target employee diversity program is called "The Strength of Many. The Power of One." It specifically seeks to work with vendors and contractors that are owned by minorities or women.
It has long extended domestic-partner benefits to straight, gay, and lesbian employees. It has received an 86 on the
Human Rights Campaign Corporate Equality Index Score. In addition, Target Corporation was named one of the "100 Best Companies for Working Mothers" in 2004 by
Working Mother.
Despite Target's stated commitment to diversity, the
National Association for the Advancement of Colored People has repeatedly given Target failing grades on its annual Economic Reciprocity Initiative report card, a measure of the company's "commitment to the African-American citizenry". In 2003 and 2005, the NAACP has rated Target an "F" on this report; in 2004, Target was rated a "D-". In 2006, when Target was asked why it didn't participate in the survey again, a representative explained, "Target views diversity as being inclusive of all people from all different backgrounds, not just one group."
Major sponsorships
Target owns the naming rights to the
Target Center in
Minneapolis. It also sponsors the
NASCAR and
IndyCar racing teams of
Chip Ganassi Racing. In the 2005 NASCAR season, the #41
Chip Ganassi Target car was driven by
Casey Mears; for the 2006 season, rookie
Reed Sorenson took over the #41 when Mears moved to a different Chip Ganassi car on the same team.
Target Corporation is also a major sponsor of the annual
Minneapolis Aquatennial, where it hosts the Target Fireworks Show. It is the largest annual fireworks show west of the
Mississippi River, and the fourth largest annual fireworks show in the
United States.
Target also sponsors the
Museum of Modern Art in
Manhattan, New York. It hosts Target Free Friday Nights, providing to all visitors free admission to the museum during Fridays after 4 p.m. A similar Target-sponsored program at the
Los Angeles County Museum of Art called "Free after Five" provides free admission in the evening throughout the week. Tuesdays are free at the
Museum of Contemporary Art in
Chicago,
Illinois, courtesy of Target. In its hometown of Minneapolis, Target sponsors the Target Free Thursday Nights at the
Walker Art Center, where admission is free after 4 p.m. as well as in its sister-city Saint Paul hosting "Target Third Free Sundays" at the Minnesota Children's Museum. In
Boston,
Massachusetts, Target sponsors $1 Friday Nights at the
Boston Children's Museum from 5:00 - 9:00.
Target is the founding sponsor of the
Weekend America radio program, and the Oprah Winfrey Show on TV.
Target often supports major awards shows such as the
Oscars,
Emmys,
Grammys, and the
Golden Globes.
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External Link Exchanges
Do you know how hard it is to get a link from a large encyclopaedia? Well we're different and will prove it. To get a link from us just add the following HTML to your site on a relevant page:
<a href="http://target_corporation.totallyexplained.com">Target Corporation Totally Explained</a>
Then simply click through this link from your web page. Our crawlers will verify your link, extract the title of your web page and instantly add a link back to it. If you like you can remove the words Totally Explained and embed the link in article text.
As long as your link remains in place, we'll keep our link to you right here. Please play fair - our crawlers are watching. Your site must be closely related to this one's topic. Any kind of spamming, dubious practises or removing the link will result in your link from us being dropped and, potentially, your whole site being banned. |