At Target, creating value for our guests is at the core of our differentiated strategy and our vision for the future. It is inherent in our Expect More. Pay Less. brand promise...and in our commitment to consistently delight our guests. We offer compelling prices and in-stock reliability on a broad assortment of commodity products, with the fashion freshness and merchandise excitement of designers like Amy Coe, David Kirk and Isaac Mizrahi, with the quality and trend of trusted brands that include Waverly, Calphalon and Baby Tykes by Carter’s, and with the ease of shopping in a clean, convenient and enjoyable environment.

Our focus on pleasing our guest is so intent that we invest millions of dollars annually to understand her shopping preferences and anticipate her needs. In 2002, we leveraged this knowledge to deliver even greater value as we further expanded our market share and increasingly differentiated the Target shopping experience. We added approximately 12 percent in net new square footage to our store base, opening 114 new discount stores and SuperTarget locations. We introduced premium brands such as Starbucks, Cinnabon and Andrea Immer into our grocery assortment and Tupperware, Stride Rite and Woolrich into our general merchandise offerings; we enhanced the penetration of owned brands, such as Archer Farms and Market Pantry; and we intensified our focus on being in-stock and priced right throughout the store.

We also strengthened our commitment to deliver value to our guests at Mervyn’s and Marshall Field’s. At Mervyn’s, we added more than a dozen new national brands to our merchandise assortment, expanded our presentation of women’s apparel, enhanced the fashion content of our home offering and initiated plans to remodel approximately 200 stores by 2005. At Field’s, our efforts centered on increasing merchandise excitement and newness through exclusive design partnerships, further development of unique owned brands, heightened emphasis on holidays and special events and the renovation of our Chicago State Street store.

Over time, our guest’s definition of value and her expectations have evolved, but our commitment to delivering value remains as clear and unwavering as it has ever been.