Brad Cornell, Chair and CEO of Target, wrote a letter to shareholders in the 2022 Target Annual Financial Report. Cornell summed up the past year of growth and explained the goals for the coming year.
Target’s growth philosophy is based on catering to customers’ current and predicted needs. During the beginning of the pandemic, their growth became unsustainable, but by 2020 and 2021 they were back on track and growing steadily. “Our team was able to support that unexpected growth because the fundamentals were in place, and we carefully stewarded capital, capabilities and above all our connection to guests in an extraordinary moment for our company” Cornell wrote as he explained the high increase in revenue from 2019 to 2020.
Cornell explained their customer loyalty. Targets growth in customers for six straight years shows that their customers’ needs are being met. One reason Cornell believes their growth has been steady for so long is their flexibility in adapting to customer product choices. During times of high prices due to interest and supply chain issues, “ guests still looked to us for their discretionary choices, purchasing nearly $55 billion in apparel, home and hardlines in 2022.”
Overall, Cornell assures shareholders that the goal for Target in the coming years is to “stay agile, resilient and responsive while sustaining its record of taking care of customers, the team, communities, and shareholders.”