COVER SLIDE

Names: Summary: Pictures:

Target Local
Francisco Lucca
Our recommendation
Eleanor Kinsel
is to expand on

Kendall Watts Target’s store-in-a-

Ethan Levitt store model by

partnering with local

and Jacob
businesses.
Griessel
TA’s: Carmen Rottinghaus and Spencer
Min
Target
Local
Team #27
01 Background Agenda

02 Problem

03 Recommendation

04 Implementation

05 Financials
 01
Background

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Target

Established in 1902
Founded as Dayton Dry
Goods in Minneapolis,
Minnesota.

As of 2021
Target has 1,914 locations
nationwide with at least one
Target in each state.

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Industry Analysis
Rivalr Threat to
y Entry
7th Largest Retailer Low Threat
Target competes for sales in a Foreign brands and major
highly competitive market, competitors within the
against major retailers and industry make it near
companies in their individual impossible for local retail
sectors. companies to enter the market.

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Store-in-Store Model

Est. 2019 Est. 2021

160 Target Stores 100 Target Stores

Ulta
Disne
Beaut
y
Starbucks y

Est. 1999
1,097 Target
Stores

- Background - - Problem - - Recommendation - - Implementation - - Financials -

Small Businesses

13%
Small business owners believe their
biggest issue is attracting
customers.

Experienced
67.8% a
negative impact
from Covid-19.
- Background - - Problem - - Recommendation - - Implementation - - Financials -
 02
Problem
Pushing Target to the Next Level

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Meet
Shannon
- Background - - Problem - - Recommendation - - Implementation - - Financials -
 Target can further expand
their business by building
on the increasing
success of the
store-in-store model.
- Background - - Problem - - Recommendation - - Implementation - - Financials -
 03
Recommendatio
n
Target Local

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Target Local
Modeling off Target’s
successful Store-in-a-Store
model, Target will partner
with local small businesses
- Background - - Problem - - Recommendation - - Implementation - - Financials -
Apparel Partner:
United People Apparel

- Background - - Problem - - Recommendation - - Implementation - - Financials -

Skincare Partner:
Santosha Co.

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Food Partner:
Cry Baby Craig’s

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 How It Works

Implementation:
Target will section
off shelf-space
throughout the store
for its small business
partners.

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Shipt Expansion
Target will expand Shipt to
partner with local businesses
to increase their variety of
stores past major firms such
- Background - - Problem - - Recommendation - - Implementation - - Financials -
 Data Analytics
Using their vast base of user
data, Target will utilize their
app to push local products
- Background - towards users.
- Problem - - Recommendation - - Implementation - - Financials -
 Advantages

01 02
Public Perception Increased Revenue
Consumers will With Shipt expansion
like the emphasis and local goods,
Target puts on local Target will benefit
goods from increased
revenue

03
Larger Variety
Customers will like
the wider variety of
products from
different brands

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Unique Fit / Differentiation

● Data Analytics
● Experience with similar strategies
● Customer base
● Branding

- Background - - Problem - - Recommendation - - Implementation - - Financials -

Benefits to Shannon
1) Ease of access
2) Support both local businesses and
Target

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 04
Implementation

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Our Timeline

Target Local Reach out and come to

launches in Minneapolis agreements with more
businesses

Early Mid Late  Early

2022 2022 2022 2023

Assess the sucess of the If successful, launch

one test location  Target Local nationally

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 05
Financials

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Trial Year
Financial Benchmarks for Year 1

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Trial Year Benchmarks for Minneapolis

$23.3 M
Revenue
$18.6 M
Cost
$4.66 M
Profit

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 National
Years
Financials for Year 2 and Onward

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Revenues of Year 2 (First National
Year)

$796 M
Conservative (2.5%)
$2.30 B
$4.50 B
Expected (5%)

Potential (7.5%)

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Costs of Year 2 (First National Year)

$1.72 B
Cost of Goods Sold

$115 M
Other Costs
$1.84 B Expected Costs

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Profits of Year 2 (First National Year)

$159 M
Conservative (2.5%)
$459 M
$900 M
Expected (5%)

Potential (7.5%)

- Background - - Problem - - Recommendation - - Implementation - - Financials -

 Future Profits
$551 M
Expected Year 3 Profit
800
6% Market Share

700
$643 M
Expected Year 4 Profit
600
7% Market Share

500
$735 M
Expected Year 5 Profit 400
8% Market Share Year 2 Year 3 Year 4 Year 5

- Background - - Problem - - Recommendation - - Implementation - - Financials -

Thank You
Questions?

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Appendix
 Slide Deck
1. Title 17. Shipt
2. Agenda 18. Data Analytics
3. Background 19. Advantages
4. General Background 20. Unique Fit
5. Industry Analysis 21. Shannon Pt. 2
6. Store-within-a-Store 22. Implementation
7. Industry Analysis – Small Business 23. Timeline
8. Problem 24. Financial
9. Shannon 25. Trial Header
10. Opportunity 26. Trial Revenue, Cost, Profit
11. Recommendation 27. National Header
12. Introduction 28. Revenue
13. Apparel Partner 29. Costs
14. Cosmetic Partner 30. Profits
15. Food Partner 31. Future Projections
16. How It Works 32. Thank You + Questions
Financials Pt. 1
Financials Pt. 2
Financials Pt. 3
Financials Pt. 4
Financials Pt. 5
 Financial Sources
1. Small Business Sizes
a. Food: https://www.packagedfacts.com/about/release.asp?id=3717
b. Homegood: https://www.statista.com/statistics/746753/share-of-us-consumers-who-purchased-home-improvement-items-at
-independent-retailers/
c. Apparel: https://www.statista.com/statistics/746561/share-of-us-consumers-who-purchase-clothing-and-apparel-at-indepen
dent-retailers/
d. Cosmetics:
https://www.statista.com/statistics/746684/share-of-us-consumers-who-purchased-cosmetics-at-independent-retailers/
2. Industry Sizes
a. Food
i. https://my.ibisworld.com/us/en/industry/44529/about
ii. https://my.ibisworld.com/us/en/industry/44511/industry-performance
b. Homegood
i. https://my.ibisworld.com/us/en/industry/44229/industry-performance
ii. https://my.ibisworld.com/us/en/industry/45399/about
c. Apparel
i. https://my.ibisworld.com/us/en/industry/42433/industry-performance
ii. https://my.ibisworld.com/us/en/industry/42432/industry-performance
d. Cosmetics
i. https://my.ibisworld.com/us/en/industry/32562/about
3. Small Business Profit Margins
a. https://resources.smartbizloans.com/blog/business-finances/what-is-a-good-profit-margin-for-a-small-business/
 Other Sources
a. https://www.businessinsider.com/coolest-small-businesses-in-twin-cities-2014-5#askov-finlaysonthe-bachelor-farmermarve
l-bar-1
b. https://www.bizjournals.com/twincities/news/2021/03/02/immigrant-entrepreneurs-bringing-apparel-brand.html 
c. https://unitedpeopleapparel.com/shop-upa/10K-MN-Live-Tee-p278460512 
d. https://mallofamerica.com/directory/27674 
e. https://caitcourneya.com 
f. https://www.santosha.co/about 
g. https://www.instagram.com/santoshaco/?hl=en 
h. https://www.target.com/c/skin-care-beauty/-/N-5xtzj?Nao=0 
i. https://www.amazon.com/stores/SantoshaCo/Homepage/page/CA6B953E-215D-4932-A95A-313E909B3DE3 
j. https://www.crybabycraigs.com 
k. https://www.crybabycraigs.com/about-cbc 
l. https://www-statista-com.libproxy.wustl.edu/statistics/1220920/us-covid-19-impact-small-businesses/
m. https://www-statista-com.libproxy.wustl.edu/statistics/329040/us-small-business-owners-assessment-of-their-biggest-challe
nge/