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Analysis of Target 2010 Annual Report

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Analysis of Target’s 2010 Annual Report

In 1902 Target was incorporated in Minneapolis Minnesota (page2). Their business is divided into two segments, credit card and retail (page2). The retail segment would consist of internet sales and merchandising. While the credit card segment supplies credit cards to customers via Target Visa and the Target Card. Like most companies, Target does not operate on a calendar year. They operate on a fiscal year. The date used is determined by “Saturday nearest January 31.” For the year 2010, the fiscal year end date was January 29, 2011. In the 2010 fiscal year Target opened 13 stores to make the yearend number one thousand seven hundred and fifty stores (page 9,14), which was an decrease from the previous year. Target had many accomplishments during the 2010 fiscal year. Under the retail segment, there was a 3.7% increase in sale. Along with the opening of new stores and the remodeling of current stores; Target also repurchased of common stock. Currently, they are allowed to issue five million shares of preferred stock, but as of the closing of the fiscal year no shares have been issue or are outstanding (page 12, 34). Some future plans for the retail segment would include opening additional stores in the US and broadening it market in other countries like Canada. Current plans are to open 100 to 150 new stores in Canada by 2013. Along with the standard increase in sales and in RED card Rewards® (page 14, 28). The credit business had an increase in profit with total revenue of $1,604 million, gross receivables of $6,843 million and a decrease in expensed due to bad debt. Some reasons for this increase would be the 5% discount for almost every item purchased with the Target card. For the credit segment Target would like to see a decline in receivables and improve it risk

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