Argus-Leader from Sioux Falls, South Dakota on April 17, 1978 · Page 88
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Argus-Leader from Sioux Falls, South Dakota · Page 88

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Sioux Falls, South Dakota
Issue Date:
Monday, April 17, 1978
Page:
Page 88
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4D Argus-Leader, Sfoux Falls, S.D. Monday, April 17, 1978 ;MINNEAP0 LIS Although its store at The Empire will be the first t? bear its name in Sioux Falls, Dayton's and the Dayton Hudson Corporation are not strangers to Sioux Falls. ;That in itself is one reason why the growing corporation, which owns and operates a variety of department, discount and specialty stores and nearly a dozen shopping centers across the country, chose Sioux Falls for a new Dayton's store. ;?'When we anticipate going into a new market, we do extensive consumer research," said Dan Sweeney, director of marketing research and planning for Dayton's. "We want to determine how familiar people in the area are with Dayton's. Tit's always a surprise to me to see the level of awareness, and favorable awareness, of Dayton's in a market like Sioux Falls," he said. "We found that, going into the Sioux Falls market, we had a fairly large number of credit account holders, over 1,500. So we are going in with a strong base of credit penetration and a :base of consumers with a favorable attitude toward Dayton's." - The decision to take the Dayton's name out of the Minneapolis-St. Paul area began about four years ago, Sweeney said. The Minneapolis-St. Paul area had a .'slowing growth rate and already had Dayton's stores in all the key suburban locations. '.'To continue the kind of growth that a performance- oriented company like Dayton's is interested in, we decided we had to look for opportunities outside the home market," Sweeney said. The company commissioned a study of 60 urban areas for comparative growth, size, economic indicators and the competitive situation. The list was further winnowed down before Dayton's chose Fargo, N.D., for a store, which opened in 1973. Dayton's opened a store in St. Cloud, Minn., in 1976 and will open a store in Grand Forks, N.D., around the same time the Sioux Falls store opens in August of this year. Another outlet is planned for LaCrosse, Wis., in 1979. !'We look at cities of sufficient size to'absorb a store with 100,000 square feet of space,'' Sweeney said. "The growth rate in the urban area must be sufficient to fuel or support the kind of volume growth we expect of our stores. 'In our current plans, we look at adding one store a year in the re lila Hylland Jim Erickion Pg Edgarton Morton v . 1 i ,1 Ruth Bordewick ; I Dick Schliosman 1 ' f DonM.Witby Diane Bennii Souia gional market over the next five years." he said. "The specific number each year is subject to change, as various opportunities come up and depending on the amount of capital available for expansion." Expansion was a key when the Dayton Corporation of Minneapolis merged with the J.L. Hudson Company of Detroit in 1969. The merger made Dayton Hudson the 14th largest non- food retailer in the United States. In 1976, the corporation climbed to eighth in the country. The corporation has grown from 94 stores in 18 states in 1969 to 441 stores in 39 states at the end of 1976. The corporation has four distinct business roles. Its 44 department stores accounted for 61 percent of its earnings in 1976. Its stores include Hudson's in Michigan and Ohio; Dayton's in Minnesota, North Dakota, South Dakota and Wisconsin; Diamond's in Nevada and Arizona; Lipmans in Oregon; and John A. Brown in Oklahoma. The corporation operates 56 low-margin, or discount, stores in 10 states, soon to become 11 when Dayton Hudson opens a Target store in Sioux Falls. Dayton Hudson also owns a variety of specialty shops, including 41 jewelry shops in nine states; 250 B. Dal-ton Bookseller bookstores in 37 states (the largest bookstore chain in the country) and 22 Team electronics stores in eight states, as well as 85 more which the corporation franchises. The final aspect of its operations is Dayton Hudson Properties, its real estate group, which operates nine regional shopping centers in Michigan and Minnesota and is a partner in two more, in Oklahoma and Michigan. ; The corporation's profits have grown steadily. For the year ending Feb. 3, 1973, Dayton Hudson had net earnings of $28.2 million on revenues of nearly $1.3 billion. By the year ending Jan. 29, 1977, its net earnings had grown to $65.7 million on revenues of $1.9 billion. Sioux Falls was chosen for Dayton's regional expansion because of its stable economy with a base "which suggests continued growth," Sweeney said. "The population base and rate of growth says that a Dayton's store would do well in Sioux Falls," he said. "Our statistics show that it's a good market. ft.' vi' i Jim Owen mmm Bill Hogg COMMERCIAL INVESTMENT 37 1 2 S. WESTERN AVE. SIOUX FALLS, S. D. 336-2111 (Mil) e FARM DIVISION . 371 2 S. WESTERN AVE. SIOUX FALLS, S.D. 336-2111 $ i. Jack Snavely n stainiger to enUy . :" . mmm ' A solitary construction worker hv bors at what will be the front en trance to the new Dayton's store at The Empire The muck of construction will be replaced by 100,-000 square feet of retail space when Dayton's opens in August. (Photos by Joe Novotny) Dayton's will hire 400 persons for -its Sioux Falls store, the "vast majority", from the Sioux Falls area, Sweeney said. Five senior manage ment people will be transferred from Minneapolis to direct operations. The corporation has already projected its profits for the Sioux Falls store, although. Sweeney would not elaborate on the figures. Vlt's calculated to a gnat's eyelash," he said. "We'll have a positive net income in Sioux Falls by our second calendar year there (1979). "Our company is an organization with a lot of pride, spirit and vitality," Sweeney said. "We like to seek out complementary situations. We think Sioux Falls is one." Ode Hegg RickBohlen , I Cory Molten 1 -w ,v II O I V ' . & M 1 . ; y ' I L .-. rini b fit t A '',r-- mr u , fit , mi? -wimrn ,1 In , liiiiiii AiteiWiliii mrV , ninniiriiiiMii tJ Peie Hegg Marie Naih Jane Miller Cinny Weotherttone Al Rickert Rol Johnson RESIDENTIAL 26th and CLEVELAND SIOUX FALLS, S.D. 336-2100 PROPERTY MANAGEMENT 3712S. WESTERN AVE. SIOUX FALLS, S. D. 338-1121 I mmmiMJ M K. O. "Knute" Hoyme Les Miller Betty Draewell Gary Cefke Bev Ruttad Libby Shrevet LyUCroH

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