Speeding into 2004GLYPH<201>Momentum Backed by Success Through disciplined investment in new discount stores and SuperTarget stores  and the growth of sales in existing stores  Target is enjoying profitable market share increases. We continue to add eight to 10 percent  net  to our retail square footage annually  with SuperTarget stores typically representing about one third of this growth. At SuperTarget  guests find the great merchandise theyGLYPH<213>ve always found at Target  plus a well-stocked super- market. These stores are producing strong results and we continue to refine our merchandising and operations to ensure greater guest satisfaction. We remain focused on improving our sourcing  offering unique products and delivering exceptional value. We are adopting new higher standards for freshness  food safety and sanitation. We have significantly improved the packaging design on our own Archer Farms and Market Pantry products  and we are more than doubling our penetration of these brands in our stores. To achieve our objective to be the preferred shopping destination for our guests  we are relentlessly pursuing new opportunities and initiatives that enhance our brand identity  while maintaining a disciplined capital investment program. We understand that our guests appreciate the chain-wide consistency of TargetGLYPH<209>our dedication to fast and friendly service as well as clean  fresh  easy-to-shop store environments. Together  these elements have been important contributors to our past success and we believe they will be key components in the future as well. 9 GLYPH<210>Steer a red-plastic shopping cart down the wide white aisles of any Target store and youGLYPH<213>ll see wonderful design mixed in with the jumbo-size laundry detergent  school supplies and pet foodGLYPH<201>GLYPH<211> GLYPH<209>  House Beautiful   June 2003 Owned Brands Our owned brands  such as Market Pantry   Archer Farms  Merona and Xhilaration  form the foundation of our differentiated strategy in both our food and general merchandise assortments. Because our grocery brands are under-penetrated and represent a high-quality  value-priced alternative for our guests  we are working diligently to expand our offering. In 2003  our merchandise introductions produced a 60 percent increase in items. Fast  Fun and Friendly Team Our commitment to please our guests is at the heart of our strategy and inherent in our brand identity. Each of our approximately 273 000 team members is committed to offering outstanding service to our guests  every day  in every store  one guest at a time. By injecting speed into each guest experience  providing knowledgeable and cheerful service and ensuring that our stores are clean and inviting  we make superior guest service a priority.