visions and try to make them more successful to generate greater profits. The main reason for the problem is that the divisions are too separated from one another and work as separate companies rather than one team. Target claims that the continued growth of its divisions are key contributors to its overall strategy. It actually has strategies for each division, all in somewhat different directions. Its department stores are trying to focus on stronger commitment to newness and fashion products in its assortments. One way it is reinventing the shopping experience is through events like the Paris Flea Market and our popular "Fash Bash" fashion shows. Marketing initiatives for our Department Stores will continue to reinforce the strong brand heritage of our stores. Some of these new changes are leading to increasing costs in merchandise and employee training. Over the last three years, Mervyn's has added more than 125 national and market brands to the sales floor. In 1999, it made a more concentrated effort to let it customers know about its new brands. Again the company had increasing costs in attempt to meet the demanding needs of the customers. Target stores had still a different approach, but it had much more success. Its primary growth comes from new store expansion. Target continues to open stores in new U.S. markets; the more it opens, the more profit it generates. As stated earlier, of the three divisions, Target alone generated about 78% of the revenues with $26,080 million in sales. Mervyn’s produced about 12% while the department stores accounted for 9% with sales of $4,099 million and $3,074 million respectively. The revenues from Mervyn’s and the department stores have remained fairly consistent over the last five years with minimal increases from the department stores segment and minimal decreases from Mervyn’s. These two divisions are dragging target down. The amount of resources that could be a...
