Target: refined, renewed and rightly rewarded - Editorial

Discount Store News, April 1, 1996 by Tony Lisanti

I know you have often heard the statement that you can't judge a book by its cover, but perhaps you can judge a retailer by the awards it has received.

Over the past several months, Target has been recognized for several different accomplishments, which I believe reflect the strengths of this traditional discount retailer, as well as the success it has achieved over the past few ears.

At a time when many of its competitors are struggling, Target has excelled. While many other retailers are closing stores, Target will open 75 stores this year-21 of which opened simultaneously on March 21, including the newest supercenter in Omaha. While many other retailers are exiting markets, Target is entering new ones as it finally pushes into the Northeast with confidence. Leading DSN's team coverage of Target as part of its Power Retailers series were senior editors Jim Mammarella and Richard Halverson, who spent a recent weekend visiting stores in Virginia, Nebraska and Minnesota, battling yet some more of this winter's inclement weather.

Target not only remains the engine that drives Dayton Hudson, as Halverson discusses in his overview story on page 23, but also the upscale discounter has set new standards in key areas that have become benchmarks for the retail industry. From its innovative cross-merchandising programs that Halverson analyzes in his story on page 30, to the creative marketing programs under the direction of John Pellegrene, which Halverson also reports in his story on page 38, Target has enhanced its consumer perception as a trendy, fashion forward retailer. Consider the following:

Strategy and philosophy. Last August, Target was honored as Discounter of the Year, the third time in six years the chain has received this honor. Voted on by the readers of DSN, this award recognized the overall achievements of Target during the prior year, which led to a $2 billion gain in revenue. Chairman Bob Ulrich attributed much of Targets success to DH's "boundary-less organization," which allows all of the company's divisions to share ideas and technology.

Community service. Target has also received several awards for its charitable efforts, including DSN's DISC Award (Discounter in Service to the Community) and the "It is My Department,4" Award, an annual community service award sponsored by the Retail Advertising and Marketing Association. Target was selected for its"All-around Scholarship," a $1.5 million program that offers high school students throughout the country the opportunity to get financial aid. More than 1,300 students, or at least two per Target store, will receive a scholarship ranging from $1,000 to $10,000.

Advertising and marketing. At the annual RAC (Retail Advertising Conference) in February, Target was recognized with nine entries in the final judging and was a winner in three categories, including Outdoor, which it won for its Halloween billboard.

Merchandising. The Home Fashions Products Association recently announced that Target was named its Retailer of the Year. The award will be presented at the HFPA's Spring Market dinner April 2l at the Waldorf Astoria.

There's no doubt that Target is the shining star of a struggling segment of retailing. While somewhat shielded by the corporate umbrella of Dayton Hudson, the upscale discounter is clearly focused entirely on the business of being a traditional, yet contemporary, discount department store. Unlike its two national rivals, it has no other concept to divert its attention or its resources. Target also has not reached maturity with its format and has significant growth potential for several hundred stores over the next few years, particularly as it moves into the lucrative, upscale markets along the Northeast corridor.

While winning awards always provide recognition, they don't always guarantee success. Target has proven that you can judge a retailer by awards it has won.