When you’re shopping at your favorite Target store or browsing their online selection, it’s easy to forget that Target Corporation is a retail giant with many subsidiary companies beneath its umbrella. Although primarily known for its iconic red and white bullseye logo and diverse product range, there’s more to the organization than meets the eye.
Target Corporation, the eighth-largest retailer in the United States, does not just operate Target stores. They also own several other companies which contribute significantly to their overall success. This diversified business structure allows them to cater to a wide variety of customer needs and preferences.
Among these subsidiaries are Shipt, an internet-based delivery service; DERMSTORE, an e-commerce site specializing in skincare products; and Grand Junction, a software company that manages local deliveries. Exploring these lesser-known parts of Target’s corporate family can help shed light on how they maintain such a strong presence in today’s competitive retail landscape.
Understanding Target’s Business Structure
When you stroll down the aisles of a Target store or browse through their online catalog, it might surprise you to learn about the vast array of brands that fall under the Target Corporation’s umbrella. Target Corporation is not just a single store, but rather, it’s a conglomerate owning several well-known companies and private labels.
Diving deeper into this retail giant’s empire, you’ll find numerous in-house brands that contribute significantly to its market presence. Some popular ones include:
- Up & Up: This is Target’s generic brand covering everything from household cleaning products to health care items.
- Goodfellow & Co: A men’s clothing line launched by Target in 2017.
- Threshold: An exclusive home decor brand started in 2012.
In addition to these private labels, Target has also been actively acquiring other businesses to increase its market reach and diversify offerings. In recent years, two major acquisitions stand out:
- The acquisition of grocery delivery startup Shipt for $550 million in 2017.
- The purchase of technology company Grand Junction in 2017 which helped expand same-day delivery capabilities.
Here is a brief table illustrating some key acquisitions:
However, it’s important not to confuse certain brand partnerships with ownership. For example, while you can find Levi Strauss & Co.’s Denizen jeans and Disney merchandise at Target stores due to strategic partnerships; they are not owned by the corporation.
Ultimately, understanding Target’s business structure helps shed light on how it continues its growth trajectory in an ever-evolving retail landscape. By diversifying with both self-owned brands and strategic acquisitions/partnerships, Target positions itself as more than just your average big-box retailer—it aims at providing something for everyone under one roof (or website).
Digging into Target’s Subsidiaries
When you think of Target, what comes to mind? Perhaps it’s the iconic red bullseye logo or maybe it’s your go-to spot for all things home goods, electronics, and fashion. But did you know that Target Corporation is more than just those well-stocked aisles? They’re also a parent company to a network of subsidiaries.
Target Brands, Inc., is one such subsidiary under the corporation’s umbrella. This entity holds and manages the intellectual property portfolio related to trademarks and service marks owned by the corporation.
Another significant subsidiary is Target Capital Corporation. It serves as an in-house finance company that supports Target Corporation’s working capital requirements by investing in highly liquid investment-grade assets.
You might be surprised to learn about Target General Merchandise, Inc., another arm of Target Corporations’ business model. This division deals with importing merchandise from all around the world.
Here’s a snapshot at some key subsidiaries:
|1||Target Brands, Inc.||Manages Intellectual Property|
|2||Target Capital Corporation||Financial Support|
|3||Target General Merchandise, Inc.||Importing Goods|
Moreover, Deremco LLC, The Associated Merchandising Corporation (AMC) are also part of this extensive list. They play their unique roles in making sure your shopping experience at Target remains top-notch!
So next time you’re strolling through a Target store or browsing their online site remember – there’s more behind that red bullseye than meets the eye!
Analysis: Target Brands, Inc.
When you walk through the doors of a Target store, it’s not just Target that you’re shopping with. Several brands operate under the umbrella of Target Brands, Inc., a wholly-owned subsidiary of the retail giant. Let’s dive into who they are.
First up is Bullseye Design. This in-house creative agency is responsible for all of Target’s signature branding and design elements, making your shopping experience visually appealing.
Next on the list is Derivco, a company specializing in financial services related to Target’s credit card programs such as RedCard.
Let’s not forget about Target Commercial Interiors. They provide furniture solutions for businesses and institutions – contributing to sleeker, more efficient workplaces worldwide.
Lastly, there’s Target Sourcing Services/Associated Merchandising Corporation (TSS/AMC). Ever wondered how products at Target are always stocked and ready? That’s TSS/AMC working behind the scenes managing vendors and sourcing merchandise globally.
Here’s an easy-to-follow table summarizing these companies:
|Bullseye Design||Branding & Design|
|Target Commercial Interiors||Furniture Solutions for Businesses|
|TSS/AMC||Vendor Management & Global Merchandise Sourcing|
However, it’s important to note that while these brands operate within the context of their parent company, they each have their own unique roles and functions serving different aspects of the retail ecosystem.
By understanding this structure, you’ll gain insights into why your experiences at Target feel cohesive yet diverse – it’s a symphony performed by different players but orchestrated by one conductor – Target Brands, Inc.
Deep Dive: Dermstore.com
Did you know that Target actually owns one of the leading online beauty and skincare retailers? That’s right! Dermstore.com, a well-known brand in its own right, is under the Target umbrella.
Founded in 1999 by a dermatologist who envisioned easier access to top skincare products, Dermstore quickly became popular. It was then acquired by Target Corporation in 2013, adding to their expansive portfolio. What makes Dermstore unique is its focus on professional-strength formulas otherwise only available through a doctor’s office.
Here’s some more insight into what makes Dermstore so special:
- Comprehensive selection: With more than 700 brands featured, you’re sure to find something that suits your skin type and needs.
- Expert guidance: You’ll appreciate the expert advice given by estheticians and beauty professionals for free.
- Subscription box: Their BeautyFix subscription box gives you monthly access to high-end product samples.
Let’s look at some numbers:
These figures indicate an upward trend in revenue growth over the past three years for Dermstore.
Dermstore also stands out with its commitment to environmental sustainability. They’ve implemented eco-friendly packaging options for all orders and are continuously striving towards minimizing their carbon footprint. Furthermore, they offer many vegan and cruelty-free products.
So next time when you shop at Dermstore.com remember it’s part of your favorite retail giant – Target! This acquisition not only diversified Target’s portfolio but also enriched your shopping experience by providing easy access to professional-grade skincare products.
Shipt: Target-Owned Delivery Service
When you’re short on time or simply want to avoid the crowded aisles, Shipt, a same-day delivery service owned by Target Corporation, might be your go-to solution. Shipt was acquired by Target back in 2017 for an impressive $550 million.
This acquisition wasn’t just a random buyout; it was a strategic move. At the time of purchase, Shipt operated in over 70 markets across the United States. Now, under Target’s ownership and with their extensive resources, Shipt has expanded its reach significantly.
Ever wondered how this service works? Well, it’s pretty straightforward:
- You place an order via the Shipt app or website.
- A personal shopper picks up your items at a local store.
- Your order is delivered to your doorstep on the same day.
What makes Shipt stand out among other delivery services? It’s not just about groceries and everyday essentials. From electronics to clothes and even some furniture pieces, you can have almost anything from Target brought right to your door thanks to this service.
A key aspect that sets Shipt apart is their commitment to customer satisfaction. They aim for each shopping experience to be personalized according to individual preferences and needs.
But wait – there’s more! The acquisition of Shipt didn’t only benefit Target but also allowed them access into markets where they previously had no physical presence. This means you can get items from stores that are far away from where you live – all without leaving your home!
In conclusion (without starting with ‘in conclusion’), we’ve seen how owning Shipt allows Target not only to meet modern customers’ needs but also expand its business reach significantly. By offering flexibility and convenience through same-day deliveries across different categories of goods, they’ve certainly raised the bar in today’s retail landscape!
Exploring the World of Food with Good & Gather
When it comes to food, Target surely knows how to make an impact. One of their most successful ventures in this realm is none other than Good & Gather. This private label brand from Target has taken the grocery world by storm since its launch in 2019.
A major part of Target’s portfolio, Good & Gather offers a wide range of food products that cater to every taste and preference. From fresh produce like fruits and vegetables to pantry staples such as pasta, cereals, juices, frozen items and more – you’ll find everything you need for your kitchen under this one single brand.
What sets Good & Gather apart from many other food brands? It’s their commitment to quality and wellness. With a focus on offering products free from artificial flavors and synthetic colors, they’re ensuring that you get nothing but the best.
The success story of Good & Gather doesn’t end there though. In less than two years since its inception, the brand has rolled out over 2,000 products! That’s quite a feat considering each product needs careful curation regarding ingredients, packaging, marketing strategy and much more.
|Year||Number Of Products|
Another feather in Good & Gather’s cap is its commitment towards sustainability. The brand promises that by the end of 2025:
- All packaging will be recyclable
- Palm oil used will be sustainably sourced
- All egg-based items will use cage-free eggs
Stepping into Target’s grocery aisle means stepping into a world filled with deliciousness brought to life by Good & Gather. It truly embodies Targets’ excellence when it comes to owning companies that deliver high-quality consumer goods.
How Does Ownership Influence Operation?
When you’re considering the impact of ownership on operations, it’s crucial to keep in mind that the parent company often sets the tone for its subsidiaries. In the case of Target Corporation, this rings true. Target owns several companies and each one operates under its unique strategies while still adhering to overarching corporate values.
For instance, let’s consider Shipt, an internet-based delivery service acquired by Target in 2017. While Shipt maintains its individual brand identity and operational policies, it’s influenced by Targets’ customer-centric approach. This ownership means that they share a common goal: providing top-notch customer service.
Let’s break down how this works:
- Shared Resources: As part of Target Corporation, subsidiaries have access to a wealth of resources otherwise unavailable to them. These include marketing tools, analytics capabilities, financial support and more.
- Best Practices: Subsidiaries stand to benefit from the successful practices employed by their parent company.
- Brand Reputation: Being owned by a reputable corporation like Target can significantly boost a subsidiary’s credibility in consumers’ eyes.
In essence, being part of a larger corporation like Target offers numerous benefits that influence operation.
However, there are some potential drawbacks too. For example:
- Less Autonomy: The need for alignment with corporate goals can sometimes limit the degree of autonomy or innovation at subsidiary levels.
- Increased Reporting Requirements: With ownership comes accountability – businesses under corporate umbrella often face stringent reporting requirements.
This dynamic relationship between parent company and subsidiary isn’t exclusive to Target; it’s seen throughout various industries globally where corporations own multiple entities.
While analyzing companies like DermStore (another brand owned by Target), you’ll see similar patterns reflecting shared goals yet maintaining distinctive operations within their respective markets.
From your perspective as a consumer or investor knowing who owns what is key in understanding business models and making informed decisions about where your money goes or what products you choose to buy.
So next time when you shop at your favorite store or invest in shares of stock remember – behind every brand lies an intricate network of ownership influencing everything from product offerings to customer service approaches!
Comparing to Other Corporate Giants’ Portfolios
Let’s take a moment to compare Target’s corporate portfolio with those of other industry heavyweights. When you look at the vast empire of Walmart, it’s clear that they’ve diversified their holdings beyond retail. They own and operate Sam’s Club, Moosejaw, Shoes.com, Jetblack and several other companies.
Amazon is another behemoth with an impressive roster of businesses under its wing. Not just an online marketplace, Amazon owns Whole Foods Market, Zappos, IMDb, Audible and many more.
To put this in perspective:
|Walmart||Sam’s Club, Moosejaw, Shoes.com|
|Amazon||Whole Foods Market, Zappos|
So how does Target stack up? You might be surprised to learn that unlike Walmart or Amazon who have diversified significantly across industries and services – Target tends to focus on its main business – retailing. The company owns Shipt (an internet-based delivery service) but otherwise has kept its portfolio fairly tight-knit.
There are pros and cons to each strategy. On one hand owning a diverse range of businesses can spread risk – if one sector struggles others may thrive. But on the flip side focusing solely on your core competency allows for deeper understanding and potentially greater success within that niche.
What you can take away from this is that every corporate giant has its own unique strategy when it comes to expansion and diversification. There’s no one-size-fits-all approach here.
Benefits of Diversification for Target Corporation
Diversification has proven to be a powerful strategy for Target. It’s allowed the corporation to spread its risks and leverage its strengths in various markets. So, why does diversification matter, and what benefits does it bring to Target? Let’s dive in.
First off, diversification promotes growth. By owning different companies within varied industries, Target can tap into new customer segments. For example, they acquired Shipt — an internet-based delivery service — which helped them better serve online shoppers.
Secondly, diversifying investments helps mitigate risk. If one industry faces a downturn, others may still thrive. That way, losses incurred by one business division can be offset by profits from another.
Finally, the strategic move towards diversification enables Target to enhance its competitive edge. Owning companies that provide unique products or services gives them an advantage over competitors who only operate within a singular market sector.
Here are some key figures that illustrate how beneficial diversification has been for Target:
|Year||Revenue (in billions)|
These numbers show consistent growth year-on-year – a strong indicator of successful diversification strategy at play.
- Diversification boosts growth opportunities
- It mitigates financial risks
- Enhances competitive edge
Through strategic acquisitions and smart business decisions, you’ll see how much of an impact this approach has had on the success story of Target Corporation.