The Evolution of Target Corporation - From Dayton's Legacy to Retail Giant

Target Corporation, one of the largest discount retailers in the United States, traces its roots back to the early 20th century with the founding of the Dayton Company. Established in Minneapolis by George Draper Dayton, the Dayton Company was originally a department store chain that laid the groundwork for what would eventually become Target.

@AaronP/Bauer-Griffin Getty Images: Target Store Nicollet Mall, Minneapolis, Minnesota 2020

The Dayton Legacy and the Birth of Target

Following George Draper Dayton’s passing in 1938, leadership of the company was passed down to his son, George Nelson Dayton, who led the business until his death in 1950. Control of the company then transitioned to George Nelson Dayton’s five sons—Bruce, Donald, Wallace, Kenneth, and Douglas Dayton. Under their stewardship, the company sought to expand its reach in the retail market.

In May 1962, the Dayton family launched Target as a discount retail division of the Dayton Company, envisioning a modern, high-quality discount store that would cater to value-conscious consumers while maintaining a department store experience. Target quickly gained traction, distinguishing itself through competitive pricing, innovative store layouts, and a commitment to customer service.

Expansion and Transformation

Seven years after Target’s founding, in 1969, the Dayton Company merged with the Hudson Corporation, a Detroit-based department store chain, forming the Dayton-Hudson Corporation. This strategic move positioned the company as a dominant retail conglomerate in the Midwest, with Target as its growing discount division. Over the following decades, Target's innovative approach to retail propelled its expansion nationwide.

While the Dayton family played a crucial role in Target’s early success, their influence gradually diminished as the company grew and transitioned into a publicly traded corporation. By the time Dayton-Hudson Corporation rebranded as Target Corporation in 2000, the Dayton family had already stepped away from executive leadership. Although some members of the Dayton family may still hold shares in Target, they no longer have substantial influence over corporate decisions.

Modern-Day Target and Institutional Influence

Today, Target Corporation is a Fortune 500 company, recognized for its stylish yet affordable merchandise, strong brand partnerships, and digital retail innovations. Institutional investors such as Vanguard, BlackRock, and State Street are now the largest stakeholders in the company, marking a shift from family-controlled leadership to corporate governance driven by shareholder interests.

Despite stepping away from Target’s operations, the Dayton family remains a well-known name in Minnesota due to their philanthropic efforts and business legacy. Mark Dayton, the brother of Anne and Lucy Dayton, served as the 40th governor of Minnesota from 2011 to 2019 and was also a U.S. senator from 2001 to 2007. Bruce Dayton, the last surviving brother who helped create Target, passed away in 2015 at the age of 97.

Target’s Private Label Brands

Target Corporation has built a powerful portfolio of private-label brands, offering customers high-quality products at competitive prices. Managed by Target Brands, the company's brand-management division, these private labels span across various categories, from clothing and home goods to groceries and pet supplies. In addition to its in-house brands, Target also owns naming rights to major venues and participates in real estate ventures that expand its brand influence.

Grocery & Household Essentials

• Good & Gather – Target’s flagship food and beverage brand, replacing Archer Farms and Simply Balanced.

• Market Pantry – A value-oriented grocery brand offering everyday essentials.

• Dealworthy – A low-priced essentials brand for household goods and personal care.

• up & up – A comprehensive line of household, healthcare, beauty, baby, and personal-care products.

• Favorite Day – A brand focused on indulgent snacks, bakery items, premium ice cream, and beverage mixers.

• Smartly – A budget-friendly commodity brand featuring household, healthcare, beauty, and personal-care products.

Home & Storage Solutions

• Room Essentials – Affordable, stylish furniture and home decor.

• Brightroom – A line of storage and organization solutions.

• Threshold – A premium home furnishings and decor brand.

• Project 62 – A modern home-goods brand complementing Room Essentials.

• Opalhouse – An eclectic home decor line.

• Made By Design – A collection of home basics, including towels, cookware, glassware, and more.

• Hearth & Hand – A home and lifestyle brand created in collaboration with designer Joanna Gaines.

Holiday & Seasonal Brands

• Wondershop – A seasonal brand dedicated to Christmas decorations and accessories.

• Hyde and Eek! – A Halloween-themed brand specializing in costumes and decorations.

Apparel & Accessories

• Goodfellow & Co. – A men’s clothing and personal-care line, paying homage to Target’s early days as Goodfellow Dry Goods.

• A New Day – A stylish clothing line for women.

• JoyLab – A trendy fitness apparel brand for women.

• Universal Thread – A denim lifestyle brand inspired by classic American style.

• Original Use – A modern, fashion-forward brand for men, targeting Gen Z and Millennials.

• Wild Fable – A trendy women’s clothing line designed for younger customers.

• Cat & Jack – A popular children’s clothing and accessories brand.

• Pillowfort – A fun and imaginative bedding brand for children.

• Cloud Island – A baby bedding and apparel brand.

• Embark – An outdoor gear brand specializing in camping and travel equipment.

Intimates, Loungewear, and Sleepwear

• Auden – Target’s exclusive lingerie and intimates brand.

• Stars Above – A dedicated in-house brand for sleepwear.

• Colsie – A cozy loungewear and intimates brand.

Pet & Outdoor Goods

• Boots & Barkley – A pet food and supply brand.

• Embark – A line of outdoor and travel gear.

Electronics & Accessories

• Heyday – A stylish, affordable electronics accessories brand.

Target’s Former Brands

Over the years, Target has discontinued several brands, replacing them with new offerings:

• Cherokee – Formerly a staple for children’s and women’s apparel, replaced by Cat & Jack.

• Circo – A toddler and kids' clothing brand, also replaced by Cat & Jack.

• Merona – A versatile clothing brand phased out in 2017.

• Mossimo Supply Co. – A trendy clothing brand formerly partnered with Iconix Brand Group.

• Gilligan & O'Malley – A lingerie and sleepwear brand replaced by Auden, Stars Above, and Colsie.

Target’s Business Ventures Beyond Retail

In addition to its retail operations, Target Corporation expands its influence through naming rights, real estate ventures, and corporate partnerships. The company leases its brand name for certain projects and earns a share of profits through strategic investments.

Naming Rights & Sponsorships

• Target Center – Target owns the naming rights to the Target Center, home of the NBA’s Minnesota Timberwolves and a premier concert venue in Minneapolis.

• Target Field – The official stadium of the Minnesota Twins MLB team, where Target also holds naming rights.

Retail Collaborations & Expansions

While primarily an independent retailer, Target has entered partnerships with other companies, including leasing its brand name for specific projects or locations. Additionally, companies such as Macy’s operate under the Target umbrella in certain agreements.

Conclusion

Target Corporation has built a diverse and influential private-label portfolio, allowing the retailer to compete effectively in various markets. With an emphasis on quality, affordability, and style, these brands cater to a wide range of customers while reinforcing Target’s reputation as a one-stop shopping destination. Beyond retail, Target’s naming rights and strategic partnerships further extend its impact, solidifying its place as a dominant force in American business and culture. Target’s transformation from a single department store in Minneapolis to a national retail powerhouse is a testament to strategic innovation, evolving consumer demands, and the company’s ability to adapt in a competitive market. While the Dayton family’s direct involvement has faded over time, their entrepreneurial vision and commitment to retail excellence continue to shape the Target brand that millions of customers recognize today.

Additional Information

Target Corporation Wikipedia

The Dayton's Legacy Wikipedia

Macy's Wikipedia