Canada opportunity

Target Canada Co.^® will open and operate approximately 200 stores in Canada over the next 10 years, generating about $6 billion in sales annually. Our first stores will open in March 2013, with between 125 and 135 stores operating by the end of the year. Our mission is to be the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience.

Extending the Target^® brand into Canada requires learning about Canada’s unique culture, developing the appropriate team, building process and supply chain infrastructure, and managing aggressive timelines. We’ve established six priorities:

• build the Target brand – the Canada guest wants an authentic Target experience
• deliver the merchandise strategy – differentiation, reliability, value and frequency
• build team and culture
• remodel stores to brand
• build the supply chain
• deliver infrastructure

Target will invest significantly in our Canada market entry. This includes local hiring. The vast majority of our Canadian team will be staffed with Canadians both in our stores and at our Mississauga, Ontario, headquarters.

About $1.8 billion has been invested in acquiring the leasehold interests of Zellers, and more will be spent in remodeling stores. There will be both large multi-store markets in major metropolitan areas, and smaller clusters of stores throughout the country.