Target Corporation specializes in the operation of general merchandise and food discount stores in the United States and offer an assortment of general merchandise, including consumables and commodities; electronics, entertainment, sporting goods, and toys; apparel and accessories; and home furnishings and decor; as well as a line of food items. The economic downturn of 2008-2009 made it clear that the firm is highly exposed to U.S. macro-economic trends which impact retail spending. Although Target positioned itself as a "cheap chic" retailer, consumers still cut back on goods such as apparel and electronics, both of which play an important role in Target's total sales.
Since the recession of 2008-2009, the U.S. economy has shown signs of slow recovery. Although it is not likely to reach pre-recession levels any time soon, a gradual improvement in consumer confidence and lower unemployment should help Target's comparable store sales. At Target, stores with a partial-line of groceries in them have higher overall sales than stores without groceries. Hence, the retailer has been increasing the revenue of groceries over the last few years with its P-Fresh store remodel.