“Our mission is to be the retailer of choice in 
                         the discount, middle market and department store 
                      retail segments. By focusing on trend leadership, excellent 
                       guest service, exciting team member opportunities, and 
                            community outreach, we create long-term 
                                             shareholder value.”
                            (1999 Target Corporation Annual Report)

Introduction:

Effective January 30, 2000, Dayton Hudson Corporation changed its name to Target Corporation. The reason is, simply, due to the fact that the Target Stores division of Dayton Hudson represents approximately 75 percent of the Company’s revenue and pre-tax profits. Although Dayton Hudson changed its name, the Company Mission remains in tact. The 1999 Annual Report for the new Target Corporation states, “Our mission is to be the retailer of choice in the discount, middle market and department store retail segments. By focusing on trend leadership, excellent guest service, exciting
team member opportunities, and community outreach, we create long-term shareholder value.” (Target Annual Report, 1999, p. 2) Also included in the 1999 Annual report is the Target Corporation goal, which is “…to deliver annual earnings per share growth of 15 percent or more over time.” (Target Annual Report, 1999 p. 8) Target Corporation holds an impressive five-year record of strong returns for its shareholders. With record revenues of $33 billion for the year ended 1999, the Company boasts a 43 percent return annually for the last five years. For example, if you had the foresight to make an investment of just $100 in 1994, that investment would be worth $618 today! Target Corporation owns other general merchandise stores that include Dayton’s, Marshall Field’s, Hudson’s, and
Mervyn’s of California. Currently, the Company operates 1,245 stores in 44 of the 50 United States; they include 914 Target stores, 267 Mervyn’s stores, and 64 Department Stores. (Target Annual Report, 1999) 

Company History:

When people think of a discount store, they might consider Wal-Mart, K-Mart, or even Costco, but we believe that the most interesting company in the business of general merchandising is Target Corporation (formerly Dayton Hudson). The history of Dayton Hudson takes shape during the late 1900’s and early twentieth century. In 1881, Joseph Hudson opened his men’s clothing store in Detroit, Michigan and within a decade, Hudson owned one of the largest retail clothing stores in the United States. In the mean time, in 1902, a former banker named George Dayton established a dry-goods store in Minneapolis, Minnesota. Mr. Dayton and Mr. Hudson practiced some of the same novel store policies, which included store credit and merchandise return privileges. (Target Homepage, Company History, October 15, 2000) 

After WW II, both men had the same vision, that business would boom in the suburbs. Therefore, each company began building shopping centers in their respective parts of the country. The year 1962 marks an historic date in the history of Dayton Hudson Corporation, in that the Dayton Company opened its first discount store, named Target. Dayton’s went public in 1966 and in 1969 the Dayton Company and Hudson’s merged, forming the Dayton Hudson Corporation. Less than a decade after the merger and having accumulated more than 30 stores, the Target discount chain became the Company’s top moneymaker. In the following years, Dayton Hudson acquired Marshall Fields and
changed the name of Mervyn’s to Mervyn’s of California. (Target Homepage, Company History, October, 15, 2000) 

With a strong commitment to shareholders, Dayton Hudson continued to grow its discount business by expanding westward, and opened its first Target Store in Los Angeles, California and in the Northwest during the late 1980’s. During 1990, the Company opened its first Target Greatland store and succeeded in opening 420 Target Stores. Continuing to grow, Dayton Hudson introduced the Super Target Stores during 1995. Additional expansion of the Target Stores includes the Mid-Atlantic and Northeast. Although company revenues and profits soared, rapid changes in technology would
eventually force the Company to find new ways to continue its growth. One answer came with the acquisition of the Rivertown Trading, a direct-marketing company. In addition, management decided to provide some of its own inputs by purchasing an apparel supplier called Associated Merchandising in 1998. Other enhancements include the 1999 launching of e-Commerce capabilities. Providing a new store on the web to compete with its major rivals Wal Mart and K Mart, the Dayton Hudson Corporation was state-of-the-art. (Target Homepage, Company History, October 15, 2000) 

Dayton Hudson has seen many changes during the past 98 years. The above mentioned changes and innovations were essential for Target Corporation to grow and achieve the number two ranking in Fortune Magazine’s category of general merchandisers. 

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