Target Corporation operates large format general merchandise and food discount stores. The company’s financial ratio and statement analysis shows that Target is a profitable firm. After a downturn during the financial crisis, Target already began to continue its success in 2009. Target invested capital in new stores, remodels and infrastructure, which resulted in record cash flow. Target is better positioned and stronger than it was in recent years. So the company can improve its market share in 2010 and generate substantial value for its shareholders.
Target’s star is its new store type “PFresh” which carries many more food products than general-merchandise stores to low prices. Target plans to invest a large amount in new PFresh stores this year because the company recognized that this concept meets the challenges of the post-recession market. This successful format gives Target the opportunity to capitalize on consumer and retail trends.
Target was able to increase its revenues, even if there were some problems concerning product recalls. Customers’ safety is a top priority for Target. The company is working closely with its vendors. Target requires all of them to meet and comply with all applicable laws regarding product safety. It is continually looking for ways to avoid these recall-problems for its owned brand products.
As a big retailer, Target takes care of the environment. Different recycling programs benefit the environment and fuel the company. Target will continue to innovate these programs as markets grow and strengthen. Customers appreciate this behavior which will result in improved revenues.
To stay competitive it is important for Target to increase the amount of its space for consumables.
It is also important that a retailer avoids stock-out situations. Therefore, the company has strong supply and distribution channels. This extensive network helps Target increase its relations with its customers.