• Mervyn's Department Store
• Marshall Field's Department Store
• Mervyn's operating profit has declined from $280 million in 1997 to $238 million in 2002.
• Marshall Field's operating profit has declined from $240 million to $125 million in 2002.
• Federated is Interested in Acquiring Marshall Field's.
• Target increased store sales by 7.7% (5/13/2004).
• Target makes 93% of total sales pre-tax profit without Mervyn's and Marshall Field's.
• Dividend payment of $0.07 5/18/2004
• Stock price reached new high 03/11/04, 03/12/04, 03/19/04
• Dividend payment of $0.07 2/28/2004
For the 13 weeks ended on 5/1/2004, revenues rose 12% to $11.59 billion. Net income rose 25% to $438 million. The results reflect the addition of new Target stores, a 6.6% increase in comparable store sales and higher gross margins due to markdown improvement.
• Target is interested in selling Marshall Field's and Mervyn's.
• Sell Mervyn's and keep Marshall Fields which produced 6.1% same-store growth in the first quarter.
The first recommendation I would make has to do with the customer service I have encountered within the Target stores. I have had to search high and low for an employee to assist me with my search, but even when I find an employee they are not usually qualified to answer my question, but must go and find the employee that is. I wait and I wait, but I never see the qualified employee nor do I see the first employee I spoke with. My recommendation would be for more employees and for more cross-training so that each employee has a basic grasp on the items within the store.
The second recommendation I would make has to do with the check-out process. I would copy the check-out process that Wal-Mart currently uses. Wal-Mart has set the standard on speedy checkout and Target should follow suit. I waited ...