Target Blows It In Canada.

Discussion in 'The Pub' started by tim gueguen, Jan 17, 2015.

  1. tim gueguen

    tim gueguen Member

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    I'm surprised there isn't already a thread about this. For those in the US who haven't heard, Target is completely pulling out of Canada. They announced Thursday morning they're closing all 133 Canadian stores after only entering the Canadian market in 2013, putting 17 thousand people out of work. Reportedly they weren't expecting to make a profit on their Canadian operations until 2021. Canadian customers familiar with US Target stores thought the Canadian stores charged too much, that is when you could actually find merchandise you were looking for, which was another major problem. I don't think I've ever seen an American company trying to enter the Canadian market make such a mess so quickly.

    http://www.cbc.ca/news/business/target-s-launch-into-canada-a-multifaceted-failure-1.2901789
     
  2. CowTipton

    CowTipton Silver Supporting Member

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    It's not just Target.
    Sony closing their stores in Canada as well.

    Tough to make a profit there.
     
  3. Animalboy71

    Animalboy71 Member

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    Works for me, just means my company will get more work volume & my stock will rise.

    Yay me!
     
  4. tim gueguen

    tim gueguen Member

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    Sony's closing up 14 stores, and they had something like a 25 year run up here. They probably have the same problems as other electronics retailers, people browse for stuff in store then shop online, as well has having to compete with 20 other stores in the same market carrying many of the same Sony products.
     
  5. 2leod

    2leod Re-Member Gold Supporting Member

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    So we should just take your word for it then?

    All those other international and American companies already turning a profit should be made aware of what they're in for.
     
    Last edited: Jan 17, 2015
  6. Srdjr

    Srdjr Member

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    Safeway did very well in Canada.


    Sent from my iPhone using Tapatalk
     
  7. SamPaoli

    SamPaoli Member

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    Wow! Why would you open so many stores at once in an unproven market??

    The Target here on Maui is almost finished, and I'm Shure it will post huge profits.
     
  8. CowTipton

    CowTipton Silver Supporting Member

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    Big Lots, several dozen stores gone.
    etc.

    Higher costs for distribution, benefits, lower Canadian dollar, and so on.
    It's a tough market right now. 2-3 years ago it looked better.
     
  9. 2leod

    2leod Re-Member Gold Supporting Member

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    Target bought Zellers, a retailer that was already bleeding out. They didn't "open" any retail outlets, just consolidated the existing chain.
     
  10. MSS

    MSS Member

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    Bad marketing and no merchandise in the stores. People were expecting Target-like stock from the US parent but got something less hence no one went there. Will be used in business-schools as a lesson on how to not try and come into a market-place.
     
  11. aynirar27

    aynirar27 All You Need Is Rock and Roll Gold Supporting Member

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    i guess you could say that Target "missed the mark" in Canada. :cool:
     
  12. gigs

    gigs Member

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    Today 1 US dollar = 1.2 CDN dollars

    2 years ago it was 1-1. The current 20% diff is huge for retailers if they don't deal with it properly.
     
  13. fogman

    fogman Member

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    Target basically came here expecting everyone to flock to the stores. They did nothing a new business should have to maintain their presence. The Target near where I live was almost always empty. They were basically the new Sears in town. Sears has been hanging by a thread for years. I also expect them to disappear soon enough.
     
  14. Seth L

    Seth L Silver Supporting Member

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    Target said it hated to pull out of Canada, but it really had to get to work.
     
  15. Greggy

    Greggy Member

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    I remember stocking my bachelor pad after my divorce by shopping at Target. Sets of Chinese towels wore out, ripped, and tore after 6 months. Many other household items I bought there were substandard. Target successfully markets to females as far as I can tell (is that their primary target clientele?). But the quality of the product is questionable.
     
  16. ford

    ford Supporting Member

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    Thats weird, because Safeway is terrible.
     
  17. D. Stewart

    D. Stewart Member

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    Nonsense!
    Business plan was nuts. Instead of opening a few test stores & tweeking them for what customers wanted, they opened 105 stores off the bat, couldn't keep stock, charged more than their website, took unfair premium on Cdn dollar, &c &c &c.

    They gutted all of them to the outside walls & completely rebuilt them .... not much "consolidating" in terms of brick& mortar, stock, or anything. Huge expense. Thought they couldn't loose. (They also preannounced the 105 stores they'd be opening first, so the competition was ready)
     
  18. Flogger59

    Flogger59 Member

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    It was Zellers with no inventory and a paint job.
     
  19. gigs

    gigs Member

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    HA!
     
  20. nateco

    nateco Member

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    I went to the one in my town the first week it opened.

    Same quality as walmart, worse prices...lots of plastic chinese stuff. At least at walmart I can buy a bottle of windshield washer fluid and a bag of work socks for peanuts.

    Target was just a fancier Zellers...which I never shopped at either.


    The big fail for target here was the groceries...Wal-mart is killing it on groceries here. Wal-mart, simply orange 3 bucks a jug...everywhere else, $4.75. I literally go to walmart just for the cheap Simply Orange and Simply Apple, I drink a tonne of that stuff.
     

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