Target's Success with Technology

Target's Success with Technology

April Lowery

March 15, 2005

CIS500

Table of Contents

Abstract 3

Introduction to the paper: 4

History of the Target Corporation: 4

Present Day Target: 5

Target and Early us of technology 6

Use of inventory technology 7

Customer Relationship Management and technology 10

Target.com 11

Creation of smart Visa Card 12

Current issues in the news regarding technology and Target 15

Conclusion 19

Bibliography 20

ABSTRACT:

By implementing technology throughout Target stores, managers have enabled Target to develop into one of the nations leading discount-chains. Technology has played a major role in the success of retails stores, such as Target. Targets management team obtained many of its organizational goals with the use of technology. In recent years, under the leadership of Robert Ulrich, Target has become known as the leader in retail technology. Target executed the use of technology to track inventory more closely with the use of hand-held scanners and computer programs. They also used online programs to be connected with suppliers for easier inventory tracking. With the application of customer relationship management computer programs, Target was able to monitor its customer's transactions more closely which enables better customer service. Target.com and the partnership with Amazon.com facilitated an increase in sales for the company. Most recently smart Visa Card was implemented, and now makes up 15% of Targets profits. Through research, people will be able to find examples from the news of recent situations where technology helped Target to become an outstanding discount retail store.

When thinking of a well known discount retail chain, usually Target is the first name that most often comes to a person's mind. Target Corporation has become one of today's hottest retailers. With its impeccable atmosphere, customer service, accessibility, and merchandise, Target stores have begun to build a smart combination of components to create a successful discount retail chain. In today's society technology is becoming increasingly important for a companies success in the retail market. In realizing this need, Target stores have taken action to continue to grow with the changing times. By implementing technology throughout Target stores, managers have enabled Target to develop into one of the nations leading discount-chains.

Most everyone knows that the Target Corporation is one of the worlds leading discount retail chains. "Target Corporation operates large-store general merchandise formats, including discount stores, moderate-priced promotional and traditional department stores, as well as direct mail and on-line business called target direct" (Visa 1). Years before Target was ever known or thought of, retail sales were a new idea in the consumer market. The retail store empire began with the innovation and persistence of George Draper Dayton. On June 24, 1902, a store by the name of Goodfellow Store, which later became known as Dayton's Dry Goods Company, opened the eyes of the nation to the retail market. "Dayton's gained a reputation for quality goods at fair prices, catering to a range of income levels, free delivery by horse and boat, and a liberal return policy unique for its time" (Rowley 94). Over the next several years internal changes took place to Dayton's store. In 1906 he promoted his 26-year old son to general manager, and by 1911 Dayton's younger son joined the company. George Draper Dayton slowing became less involved with the store, and focused his time on philanthropy to raise money for local churches. This act was the precursor for the Target Foundation in 1918. In 1923, when George Drapers oldest son died, the youngest son, George Nelson, took over the family business. "Over time, G. N. expanded Dayton's into a 12-story icon that earned a profit every year, even during the Depression- although he continued to honor his father's decision to keep the store closed on Sunday, the Sabbath" (Rowley 97). George Draper Dayton's son's and grandson's continued the steadfast growth of the downtown store, which ultimately turned into a retailing empire.

Over the next several years the Dayton family expanded their empire. "The Dayton brothers wanted to do more than keep things going- they were empire builders, who grew up listening to their father's and grandfather's nightly tales from the store" (Rowley 105). New branches were opened in the mid-1950, and shopping centers soon followed. In 1962 Target finally debuted as a retail discount store. "The first Target opened on May 1 on a 20-acre site in Roseville, offering 65 percent hardlines, like auto supplies and appliances, 35 percent soft goods, such as clothing and accessories" (Rowley 123). Through the years to come other Target stores slowly emerged into the market. By 1972 Target had acquired a total of 46 stores. Target had its share of ups and downs as a corporation, but overcame those trials and tribulations to become an outstanding leading discount retail chains that it is today.

During the last two decades, Targets true growth occurred. Under the command of Robert Ulrich as chairman and CEO of Target, Target operated under new a new motto "Speed is Life" (Rowley 85). Ulrich joined Target stores in 1967, and then became chairman and CEO in 1987. In 1994, Ulrich became the chief executive of the entire corporation. Ulrich was a member of the Target team for over three decades, and from the experiences, he gained