Why Target Failed In Canada
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- Опубликовано: 20 сен 2022
- Target's first and only foray into international markets happened in 2013 in Canada. The retailer opened a total of 133 stores in just over a year. But the expansion didn't go as planned. By April 2015, Target withdrew from the North American neighbor and closed all locations. Poor real estate decisions, weak leadership, and major SAP systems errors contributed to the company failing in Canada. Target lost $4.1 billion in after-tax losses in just one year as a result of the fallout. The company has no plans to expand internationally anytime soon.
Chapters:
Ch. 1 - 1:13 Expanding internationally
Ch. 2 - 2:44 Why it failed
Ch. 3 - 7:56 Target international on pause
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Why Target Failed In Canada
Canadian here. I'll tell you why Target failed.
Target was given a big welcome in Canada with a lot of fanfare. I've shopped Target in America and I was looking forward to it.
They took over Canada's Zeller's stores, so they had pre-existing markets with customers ready and eager to spend.
Why they failed was because the stores were stocked with garbage.
We walked in, looked around, and walked out. What items that were available you could buy at the dollar discount stores for one tenth of the price. Shelves were bare, and after going back for several weeks, waiting for things to improve, we gave up.
We got the feeling Target was shipping all of their junk north, thinking Canadians were stupid enough to buy anything.
Wrong.
Canadians are savvy consumers and expect value for their money. With Target replacing Zellers, Canadians expected mid/high quality goods for fair prices. That was not what Target offered.
Once word came Target was closing, except for the thousands that lost their jobs, Canadians were glad to show them the door.
No worries for Target though, as they probably got a great tax write off for the failure.
Treadeaus taxes make products in Canada very unaffordable
@@lakorai2 the above commenter clearly states target was not competitive compared to other businesses in Canada paying the same taxes; surely if other businesses can perform better pricing in the same market then Target had no excuse
@@lakorai2 2011- end of 2014 was Harper era...
I miss Zellers so much.
@@lakorai2 trudeau hasnt always been in office ...he wasnt in office when target came north and then left , so that blows your opinion out the window
As a Canadian, my opinion the reason Taget failed in Canada was because Canadian walked into those stores expecting to see products and Brands we found when we were in the US stores but instead we walked in the stores seeing the Exact same thing we already had in our store, specifically Walmart.
With Walmart having cheaper prices
Pretty much.
No I wouldn't want to see American brands on products
@@johnr797 American products tend to be better than Canadian products.
@@noncomplier5385 like what?
As usual this misses one important factor.
After you went to target once, you noticed the item prices seemed high. So you would google it, find the Walmart listing, which was usually the store next door, and find the exact same item cheaper.
After that, Target became an expensive place to buy cheap stuff, when literally every other store sold the same thing but at a lower price.
This got worse when people learned target's price for the same item in the states was cheaper even after including exchange rates. I believe W5 even did a report on how retailers (with an accidental focus on target) were purposely marking up Canadian prices with the idea that the market would take it anyways. And Walmart took over everything.
Like many companies, target came in thinking Canadians are just a bunch of Americans with more money. By the time the truth was learned, it was too late.
Yep. There is a reason Walmart has nearly 12x the amount of stores. Some people will pay for a "premium" experience, but most realize they spend a-lot of extra money each year only to be in these stores once or twice a week, or not at all now that many people use pickup. If you aren't going in the store, how it looks doesn't matter much to you.
Nobody thinks Canadians have more money than Americans…
Poor ignorance on targets part. Kinda surprised actually. In america target is mainly for the upper middle class and above. Or a convenience option as it usually has small lines, not as big, and nicer aesthetic. Of course in comparison to more economical options aka Walmart. (wallmart is starting to improve on this tho).
@@socalstr I've been involved with American companies before. Like Arctic cat who's president straight up told me that they charge Canadians more because they have more money and the market will bear it.
Then the fools went out of business pretty much.
So no, they do think Canadians have more money.
"target came in thinking Canadians are just a bunch of Americans with more money" this
As a Canadian who went to a target in the us and in Canada. We got none of the deals and they refused to stock what we wanted. They made no effort to compete with anyone else. So we just kept going to Walmart.
Target rode in with the middle finger or demanding that we just give them money when the same thing was available down the street for a lower price.
Also the American staff training the Canadians often came across as being very abrasive.
Well said 👏
United States of of Rudeness
Americans are a lot more aggressive than we are. It’s unsettling when that comes into town.
I was turned off of Target before they even opened when one of the execs said they were going to price "according to the market," ie. they were going to charge more than in the US because they could
Everyone I know was expecting a shopping experience much like what Target is in the United States; essentially a somewhat more upscale Walmart. What we got, instead, was a gutted Zellers experience. After walking into a Canadian Target for the first time it felt to me like the product was the worst of what I could find in a Canadian Walmart with less stock, and less selection. At first I thought that it was simply because they were still getting there stock in, however, it never improved and I stopped even bothering to go into the stores. It just started to feel like the upper management of Target Canada thought we were idiots, who would buy almost literally anything.
As a Canadian, one of the other biggest flaws that I would say was the selection of items. Whenever we cross the border into the United States and go to Target, it's because they have alot of stuff that none of the stores in Canada sell not to mention the much lower prices. The items prices and sizes of products are actually quite different when you compare Canadian products to American ones and Target didnt seem to bring any of the products or low prices to Canada and what they essentially had was a low quality copy cat of a Walmart.
Yes!
Great point, exactly the comment I made. A US retailer with access to all sorts of interesting products should have brought them to Canada.. ie. BBQ sauce made in Texas.
Selection for sure was one of the issues. An example was Christmas decorations with an American theme. Silly.
Canada can't just bring in American products, they need to use Canadian Suppliers and all packaging must be fully labelled in French and English. Many American brands also do noy have a presence in Canada and cannot be imported up here, the duties etc make it a money losing venture. As for Target house brands like Threshold, NateBerkus they were all available at the Canadian stores with bilingual labels and packaging. Canada has 10% population of the USA and Canada in general cannot offer the cheap prices that the USA can. This applies to all US brands operating in Canada.
@@GH-jh7dz you could but you don't want to conform to our laws! just like Walmart though they could pay Canadian at 4-6$ the hour!Oh boy Walmart had a surprise and did not get away with it !
A big part of the downfall in Canada was the Zellers takeover. In my city Zellers was very popular meaning Target had large shoes to fill. I can recall being very underwhelmed at my first visit and some lady laughing loudly for all to hear "I want my Zellers back!" From our local perspective, Target bought our beloved Zellers, gutted it and then left town. After Sears Canada collapsed it has left us in a huge hole with only ONE true dept store to cross shop at: Walmart. Yeah, still feelin' it.
We have Loblaws and it’s various stores like superstore, no frills, etc. in some cases, noticing cheaper to shop at than Walmart.
Zellers sold shoes that I could wear for a season or two at least. Walmart sells shoes you can barely wear for 6 weeks before they kak out.
@@Liberal_From_Prairies689 but no amex accepted...
@@Leftatalbuquerque People joked on Zellers products, but their shoes also served me well. I also bought their jeans there, brands which are still recognizable today. There's no similar big department store for many household items like Zellers now, except for Walmart.
If Zellers had embraced online shopping and renovated their stories, they could have stayed in business and become very profitable.
As a former worker during those times working at a supply chain that handles product for Target in Canada, I can confirm that it was indeed a mess. What was even more embarrassing was the fact that the labels we were putting on the outer box (that was used to locate items in the warehouse) were displayed in store. Target should’ve focused on a handful of stores and test the market instead of rushing everything nationwide..
yup i noticed all that too and i was working in the mobile section of one of the targets.
They should not have tried to enter the Quebec market, either. They did not know the translation rules and their shopping habits. #toomuchtoosoon
Costco in Canada was a slow rollout, with some of their first stores in places in Canada most Canadians never heard of. And they grew it into a success.
@@theevilascotcompany9255 love costco. Worth it for the gas prices alone.
@@theevilascotcompany9255 I remember when Costco had a grand total of two stores in Burnaby and Richmond, BC and were almost unknown in the eighties.
Target advertised a Remembrance Day sale in Canada (Veteran's day in USA). This went over like a lead balloon. Remembrance day in Canada is a somber day, the backlash against Target was severe, and they apologised for the sale.
Seriously huh, did not have any Canadians on their marketing team?
I remembered being *very* offended at the gall of some companies using September 11, 2001 to market their products. Target doing a sale on Remembrance Day... Christ, that's a literal textbook example of TONE DEAF.
@@johnnycheung5536 bruh companies have done Sept 11th sales? American companies?! Oh my god that's horrific and amazing. But yeah commercializing Remembrance Day is something else.
Interesting. Veterans Day sales are common. While they’re meant to be made to remember fallen soldiers I don’t think many care too much about the holiday in the states so they likely assumed this was the same deal.
@@windydelta7105 I don’t think American companies. 9/11 sale doesn’t ring any bells
Note: I loved Zellers. Not all shiny like the Target store but a comfy place to shop with reasonable quality products. I miss those stores.
And the restaurant was the best anywhere.
Me too! It’s coming out soon in spring 2023!
I clearly remember the first thought I had when I walked around Target “Do they think us Canadians are idiots?” The products were really cheap and the prices were really high. I went once and never went back
Christine Brunet, your comment is so "on Target", pun intended. Vous avez raison.
Not at my Target. Brand name merchandise and great prices.
They did think we were idiots. I read an interview where en executive all but said Canadians are rubes
It’s no different in America. The products are never anything special.
Nova Scotian here. One of the reasons Target failed in Canada: our geography. Canada is a massive country that by any standard is sparsely populated. We are only 38,000,000 in the second largest country in the world. California has more people than all of Canada. Instead of focusing on larger urban areas like Montreal, Toronto, Calgary, Edmonton, and Vancouver, they opened stores literally everywhere. Our consumer preferences in Canada are basically a carbon copy of the United States. Let's be honest, we are very similar people. In Nova Scotia we have just over a million people. They opened 3 stores here immediately, 2 of which were in Halifax with a population of only 500,000. One of their stores was in the Sydney area with a population of less than 100,000 with 3 existing Wal-Mart stores. I went to Target a lot locally. By comparison, Halifax has 5 Wal-Mart stores, one for about every 100,000 people. The Target stores were either half empty, or bare. They had zero distribution network as they were trying to fill way too many stores. They should have focused on the big markets first, and let it grow organically. People were turned off with the quality and availability of products. There was definitely an opportunity for a mid-level department store in Canada, and Target fit the bill. They simply tried to expand too quickly and didn't realize just how damn big Canada is.
I agree, I think this is the issue - Target should have launched in the major cities, then selectively moved into smaller regions of Canada. Walmart was already entrenched in these smaller markets and went all out with a price war against Target.
My US town has about 75k people and another 20k that probably come in to shop occasionally at least and we have 2 Walmarts that are both always busy and one Target that is not nearly as busy.
They didn't hire Canadians to run the operation, and American executives didn't understand Canadian idiosyncrasies. It was sheer ignorance and arrogance on the part of Target. The market was theirs for the taking. Like many others, I was excitedly anticipating the opening of their stores, and could not believe the bare shelves and unexpectedly high prices. I never returned.
it wasn't just that their executives didn't understand our idiosyncrasies, it was that they didn't care to put in the effort
You are 100% correct.
canadians are not idiots y u call canadian idiot?
@@jankay8569 no one is calling Canadian idiots.
I worked at a Zellers location in Mississauga for 18 months and we (myself and my fellow employees) were promised priority selection of employment when it came to the turnover to Target. However, all of us were forced to re-apply, and the Target location I applied to (which was the Zellers location I had worked at) only lasted about 6 months before it closed. It's now a Walmart and doing very well
As a Canadian the issues I noticed:
-Canadians expected a rival to Walmart and hoped this translated to lower prices. This didn't happen. Target's prices were higher than Walmart.
-Target did not have brand loyalty in Canada. Without at least starting with lower prices, many Canadians went once and not again.
-Target had problems keeping shelves full. The consumers that did shop at Target soon found empty shelves.
-Products Target did carry were not different from anyone else. Again without establishing brand loyalty. There was no reason to shop at Target when Walmart was cheaper
Target is slightly higher in price than Walmart in USA too. Stores are cleaner and less packed with people so sometimes a slightly higher price is worth it
@@zakyum Walmart stores in Canada are quite clean IMO. Target could have kept the same model but again they didn't build up brand loyalty. There was no reason to go to a slightly cleaner store with empty shelves.
Target failed in Canada because they had none of the deals they had in the US. They were also over ambitious by taking over Zeller's leases and opening many stores at once, which led to logistical problems.
"Why didn't they open a few test stores?" Is my biggest question for them.
Because of our sparse population to land size, things cost more. I hate they left Canada. I liked them more than Zellers and Walmart.
@@triggeredcat120 cost of things in Canada can be lower or higher than America depending on what. Even if target had better deals Canada already has retailers to fulfil Canadians needs and that Canada has a small population compared to the United States which means you don't need nearly as much retail stores and retailers as America.
Sounds like the issue was they were so focused on opening 124 stores instead of maybe 20-30 as a stepping stone
Exactly! Instead of toe testing the waters, they went full cannonball. 💦
Not even that many. Try five or six in the big cities and see how it goes.
yeah I agree, they opened too many, too fast, lack of products and more expensive than US stores contributed to the problem as well.
They tried to jump into a new market without making the commitment to learning the market first.
@@michaelrmurphy2734 Economies of Scale is also a thing. Starting 5 locations instead of 20, can be equally or more expensive than running the 20 locations. You need bigger purchase orders to bring costs down, especially if you want to be competitive. Just make sure you're not opening too many locations than you can handle, which is where Target screwed up.
Target didn't do their homework a dived in head first without seeing how deep the water is. This resulted in logistical nightmares causing shelves to be chronically empty (and this happened before the pandemic which is pretty sad). Walmart on the other hand took their time and started slow by acquiring Kmart Canada & Woolco for starters and grew steadily over the years. Target thought they could do the same thing in months that Walmart took decades to accomplish.
Yup. I remember Penticton BC had a Woolco inside Peachtree Mall that Walmart acquired and eventually replaced with an entire new building. Sears also disappeared from that location.
They used SAP as their ERP and could not get the configuration correct. That messed up all their logistics.
The irony is that Target sold many of their former locations to Walmart when they went bankrupt.
@@mightyoaks9331 Another issue is that they couldn't get SAP and their untested Israeli warehouse software to interface and talk to each other. This along with the warehouse employees gaming the system to boost their performance bonuses based on fill levels at the warehouse and deliberately holding stock and not releasing it and preventing SAP from being aware of the hidden stock made it virtually impossible to move anything out of the warehouse.
When I was living in Palm Springs, we had a lot of Canadian snowbirds come down to escape the winter. They were delighted with the local Target and said that the Canadian Target stores were horrible--one lady asked "Why can't we have stores like this?" Whoever was in charge of the Canadian expansion really screwed up.
“Escape winter”
Instead of 124 locations, they should have opened 24 locations, and gradually scaled up. They did too much too soon, and screwed up everything.
because they made backdoor deals with vendors to put money directly into the svp's pocket
@@realtalk6195 they just replaced all the zellers with targets. the staff was mostly the same in store. zeller was barely hanging on as a retail store thinking it could compete with walmart. it was more expensive and had less variety. target in the usa is a different beast.
7 Eleven Stores : hold our Ramen 🍜🍛 please
I used to visit my cousins in Illinois every summer and loved going to target. Years later they opened in Ontario and I was excited. I eventually got around to checking the stores out just to be majorly disappointed. It was more or less a glorified dollar store.
The market is here if companies (like Walmart) actually care to invest in it. Sending a bunch of junk that nobody in the US wants isn't the way to go about it.
Not mentioned in this piece is that when Walmart took over the Woolco stores in Canada in 1994, the stores were kept open during the remodelling. Target, on the other hand, closed down the old Zellers stores they took over for months during a complete renovation, letting customers develop other shopping habits. Another problem was pricing. Canadians were expecting US Target prices when instead they were inflated, even with the currency exchange taken into account.
Wow nice …….::::😊
You are correct Fields stores as well.
Your comment about just tacking on the currency exchange was a big misstep. Clearly no analysis to ensure competitive pricing was done. Ridiculous.
@@albertawheat6832 hello
And it was mostly junk compared to the products in their American stores.
As someone who never heard of Target until it opened in Canada and finding it extremely lack luster, I was always curious why I was always seeing these videos in America about people loving the store. This video explains it, thanks!
Lmao. How could you have never heard of Target?
@@justrandomthings319 Because he's not American, would be my speculation.
@@justrandomthings319 Canada is a different country, genius.
One of the biggest reasons Target failed in BC was because people were expecting the same selection of goods found in US Target stores to be in the Target stores in the Lower Mainland.
Yeah, doesn't help that Target USA is only 1 hour across the border in Bellingham, WA...
Logistics is Targets great weakness in the states too. Many times I’ve had to leave Target and go to a competitor due to empty shelves at Target.
Lies
Same, a target had opened in montreal, i was like a week after it opened my family came in the store for a item that was on sale, and the store was almost empty, shelves were moslty empy and the ones that did have items there was very few and the price was too expensive. The target was right next to a Super C a big supermarket chain with good prices. Not the smartest thing to do. It closed after not even half a year i believe
Me to. I once was in a target and the produce section was empty. I walked across the street to a supermarket.
Do you live in the Midwest? I've never had that issue here on the coast unless it's a hurricane.
I’m guessing it’s a regional issue because I’ve never seen this problem at any of my local Targets.
My wife and I loved Target in the USA. We moved to Canada in 2007 and were very pleased when Target announced their rollout in Canada. They just never had any amount of stock in any stores so we just stopped going. No surprise it failed.
I’m a Canadian. In our city we got a target but my family didn’t go there after the buzz wore off. IMO they sold clothes which I’m not going to wear what I perceive to be Walmart level clothing. They had groceries, but Walmart had more. I didn’t understand the point of the store, seemed like a random smattering of products. I had no reason to go there as Walmart already had every product I could need.
And the prices weren't competitive from what I saw.
There were 3 near where I live. I went to one that was within walking distance to where I live around the time it was going out of business. It looks like a red version of Walmart.
That's the way I feel about target in the US but it somehow succeeds. Why pay higher prices for Walmart level stuff?
At least in US cities, the difference is more about brand perception and demographics. I saw many Target stores in the middle of downtown, but Walmart stores are usually bigger and you need to go a bit more to the suburb to find one. So Target is more like a city dweller's Walmart, plus they use these downtown stores as "warehouses" for your online orders, so they can distribute their stock to customers in the city more quickly. But I agree, Target clothes are pretty much Walmart-level quality.
That's all Target is, overpriced Walmart lol.they're like a high end Kmart sell the samething as Walmart charge $5 more.
In the US, Target is seen as a slightly more upscale version of Walmart. In Canada, where frankly I think Walmarts are of a higher quality than in the US, Target was simply seen as just an unnecessary duplication of Walmart.
Yeah, we don't have "Walmart people" in Walmarts here in Canada.
@@shane250 lol yes we do
@@atodaso1668 I have yet to see one
@@jordycalvin8272 maybe you are one of them? lol
Thats facts.
Walmarts are actually pretty nice here. Same with superstores.
Target was litterally just unecessary lmfao.
My kitchen had a better selection of products than our Target did. Sure they had 8 stand mixers but they were the same model and just in different colors. Prices were outrageous and it really felt like we got all the American rejects. I counted down the days until our Target opened and when I went I walked out of there empty handed, it was almost like a bargain bin but at premium prices for garbage.
Here in Canada it was a disaster. Horrible clothing labels, ridiculous prices. I went to a couple different Tagets and walking around was like being at a funeral. No music playing, shelves looked full in some places but it was an illusion because behind the first row there was nothing. Target came here thinking Canadians would just accept thier messy inconsistent business but learned quickly. In Canada if you are not consistent, organized, professional and have the product and labels you are done.
Ironically... if they opened during COVID (or now), those empty shelves would be acceptable!
I think it was CBC interviewed the Head guy of Target (either the C. head or it's President in Minnesota?) and he said and I remember: "Canadians WILL BUY what WE put on the shelves" I thought this was over the top and arrogant EVEN FOR the usual suspects being KNOWN as arrogant.
I remember that people were super-excited about Target coming to Canada. One of my friends had even been hired as a manager at one of the stores, and he'd drunk the kool-aid DEEP on Target culture and how it would be the best thing that had happened to the Canadian retail market in years. And then it was just SO DISAPPOINTING when they actually opened.
Excellent piece, my comment about Target Canada when I visited a local store here in Montreal, is that they were not offering anything different than any other local retailer. And the pricing was similar. I was hoping a US retailer was going to have some exclusive products on their shelves like bbq sauce from Texas, herbal supplements from California, ready frozen philly cheese steak from Philadelphia, and brands that are not available here, extra large muffins that I can only buy at Price Chopper when I go to Vermont.
Canadians like me where looking for something special, when I shopped, I only saw the same sold in all the other stores, there was no difference!
Same. I'm from the Montréal area and was looking forward to the great Halloween & Christmas decoration selection I found in the U.S.. That didn`t happen. Instead, I found the same old at double the price (when there was anything on the shelves at all). I mean... they literally could have just carbon copied their U.S. store selection and it would have worked. Mais ils nous ont pris pour des valises. When they packed up, I wasn't sad. Furthermore, to add insult to injury, they had online shopping after they left but didn't offer FREE shipping. Then, they discontinued shipping to Canada altogether on their website! They just want us to hate them. So, I do. And I never want them back on Canadian soil.
I used to work with Canada’s largest consumer electronics distributor, we were barely able to get any product loaded into Target from what I remember. The relationships weren’t there.
Yup, its all about building and establishing relationships. Gotta have 'em. Business 101. Yup
As I Canadian I can say people were mostly disappointed with the prices when compared to Walmart which had stores in basically every city that Target did but had been there already for many years. Also by taking over Zellers stores, which had a bad reputation for dirty and disorganized stores, and then opening with bare shelves made people think of Target as Zellers with a different name.
It definitely felt like I was walking around in a slightly more expensive "Zellers" when I visited the store in our area that used to be Zellers. Same red and white, seriously it felt like nothing but a name change and some stuff more expensive.
When I walked in I saw a red Walmart with barely anything on the shelves. I never went back.
False! Canadians loved Zellers. Maybe the Zellers in your town wasn’t that great but it was a beloved Canadian store. So many people are glad to hear of its return coming soon.
The first time I came to Canada Target was either already on its way out to non-existant.
And now Walmart is gouging the people....see the trend in economics happening.?
Target is yet another example of the American company failing to do their homework when attempting to set up shop in Canada or messing up an acquired Canadian company. Doing business in Canada isn't that easy.
Hubris!
But Walmart Thriving in CANADA 🤔
@@Booz2020 they have been here for over 25 years and they didn’t start with over 100 stores!
@@Booz2020 Right, because Walmart did not explode across Canada. They grew slowly, figured out how to deal with the particulars of the Canadian market. Secondly, Walmart has the better control over inventory and their systems (probably bested only by Amazon). Third, ANY US retailer that makes Canada its first foreign market - the backoffice needs to know how to deal with multiple currency and report in multiple currency. Target was totally naive to the planning and thinking one needs to do when reporting and paying taxes in multi-currency. Walmart already had multi-currency savvy and thus knew how to report on the back end much better.
Cuz target has nothing good to sell, Walmart is cheaper and more item to choose from
Something that shouldn't be ignored also is that fact that, although they said they wanted to focus on the physical stores instead of online retail, they simply disregarded their website pretty much entirely. I used the Wal-Mart website all the time just to see if a certain product was being sold by Walmart and if they had any in stock. When I tried to go on Target Canada's website to do the same, I realized it was just a PDF image or their weekly discount flyer... No way to know if they would sell whatever I was looking for or to know if they had it in stock. So I had to go to the store in person to see if they sold what I was looking for and that's when I saw how empty it was. That was the first and last time I went there, they closed not long after.
I remember going to the website to see their price on graphing calculators. I couldn't even SEARCH the website to see if they carried calculators. Who in their right mind thinks that is acceptable for a national chain? US Target website was a vastly different experience.
Exactly. How does a company ignore the most important aspect in today's technological world? Even Walmart's website is horrible by today's standards. But at least they have one.
Walmart Canada was only started building out their e-commence function after Target's arrival. Target was crazy not to build out e-commerce from the get go. I think it has to do with starting out with a completely new system (SAP) which takes time for staff to understand its data and the analytics. By the time things started to turn around, Cornell decided to pull the plug.
They closed Zellers, ripped down stores and re-built them. Windsorites, travel to Detroit MI to shop at Target and seeing prices that were not good like the US and just not being Zellers was a turn off. I could go into Zellers and usually find things that were what I wanted and priced well. I just couldn't find what I wanted from Target Canada.
Why didn't they just build a few stores to test the market? I mean 124 stores in a market they obviously didn't research very well? Dam!😳 I live in Toronto and though I was born in the US the culture here is not exactly the same.
What would be some cultural differences you have in mind?
They took over Zellers leases. It was one big swoop. (Technically, Walmart did the same thing with Woolco stores in Canada back in 1994)
arrogance
Geez, they didn't even need to do that! With them replacing Zellers, everything was already there, from tills, to racks, to shelving to warehouses. They just had to pick up the keys, move in and set it up.
@@TehxHope Class. In the US Target is seen as the clean middle class hypermarket brand. People shop at Target to not have to see the "people of Walmart". In Canada no such reputation exists. Canada doesn't have the insane wealth gaps that the US has to facilitate the association of Walmart with the poor classes.
Also culturally Canadians are polite, but not sociable like Americans. The whole American way of being overtly friendly is seen as abrasive and kind of intrusive when people just want to shop in peace.
I went to Target in Calgary three times.
The first time I thought they were still getting their feet under them.
The second time was worse.
The third time was the 90% closing sale.
Same here, got a nice backpack for less than half price, the ONLY thing I ever bought at Target
Don't forget Loblaw and Canadian Tire.
But honestly, did you think these retailers were going to stand back while Target entered Canada? Heck no! Walmart aggressively added stores all over the country (even building one in my district a block away an existing Target store; opening literally weeks after Target shut down).
Also, these established retailers fought back with enhanced digital offerings and loyalty programs to entice shoppers, and boy did it work! You could thank Target for giving power to the consumer.
Canadian Tire is always gonna be great store.
Target was honestly mid
@@honkhonk8009 Canadian Tire is extremely mid... boomer central
@@hmacklemore2226 without a boomer, you wouldn't be here .
Canadian Tire was super aggressive when Target made their announcement. They ramped up their housewares selection and completely upgraded the department with new fixtures.
Canadians wanted the shopping experience they had, when crossing the border to shop in Target in the US. What they got was what was already sold at Wal-Mart, and empty shelves. There was SO MUCH enthusiasm when Canadians heard that Target was coming to Canada! I don't know what we got, but it certainly wasn't what we wanted. There was literally no reason to shop there. Target had to work hard to fail here.
REAL REASON: Walmart period…..Walmart is viewed DRASTICALLY DIFFERENT in Canada then in the US. In the US middle class people don’t dare go to Walmart. When we visited our cousin in the US and said we wanted to go to Walmart, she said, “We don’t go to Walmart!” In Canada, everybody goes to Walmart, from rich to low income. That’s why we have Walmarts right in the middle of our rich neighborhoods also.
Walmart had a 20 year head start in Canada (no Target), which allowed them to get a massive foothold in Canada and to create a “Canadian” perception of Walmart.
So knowing all this….why would ANY Canadian consumer go to Target when the prices were A LOT more than Walmart?!?
Canadian here. I was expecting a competitor to Walmart. What we got was empty shelves and higher prices. It fails because there was NO point going to Target instead of going to Walmart.
I remember Target originally only planning 40 stores, in the most primely-located Zellers locations (mostly free-standing stores and those few locations in the top-tier shopping malls), with another 40 Zellers being bought by Wal-Mart and the rest planning to continue operating as Zellers. A somewhat last-minute decision expanded the number of openings to 133 with only enough merchandise to stock 40 stores. Had they have started with just the 40 stores and then added very slowly, they might have been able to adapt to the market.
They basically were told btw Walmart wants too! And they paid through the nose. Plus Loblaws had just bought Holts so the bAy needed money to buy Saks 5th Avenue to compete because they didn't think a grocery store chain could handle a luxury department store. Both parties gambled and lost. Loblaws just Imported a family member from the UK who was involved with Selfridges department store. So they had experience and the connections as the involved member was a buyer for the UK department store. Basically the Bay and Target should have stuck with their original plan.
As a Canadian who has had the American Target experience, I was so excited when I heard that Target was coming up here. Unfortunately it was a major disappointment. The store I went to had a lack variety and selection and the goods just didn't have that "discount chic" aesthetic that Target is know for. What a missed opportunity. 😕
It's simple, target offered budget products at a premium price. They took over Zellers, the budget chain from the Bay Stores and introduced prices much higher that Zellers. Zellers was failing due to high prices and could not compete with Walmart. When Target was introduced to Canada as a better Walmart, but it was way more expensive for similar products Canadians were not impressed.
1:35 by no mean was Canadian retailer Zellers a failure. Up until Zellers started liquidation, we were setting sales records Canada wide. Zellers closed because it’s parents company HBC didn’t want to be associated with a “discount” store anymore. Zellers was an icon in Canada and even right now it’s struggling parent company HBC is still trying to profit from the Zellers brand. Targets mistake was purchasing the leases from HBC. Instead they should have purchased the zellers brand as a whole. Along it’s main distribution centres.
HBC has now brought Zellers back from the dead as a section in the Bay and online as well. Possibly in the future, full stores might reopen as well. Clearly, inflation changed their minds on being associated with a discount store.
There is a Target Canada ghost store 2 blocks from me. The location is really convenient for our area but it’s not a shopping destination and that is part of the reason many Zellers failed in the first place. In addition to supply chain issues and empty shelves there are things I love at Target in the US that did not make it across the border. Most of the cute affordable home decor was not available, same for many of the Target clothing “brands”. They had so much insight about the market using their online presence to know what Canadians were ordering and looking at on their American site even if they didn’t want to have an e-commerce channel immediately. Really poor strategy and even worse execution.
I had the exact same reaction as many other comments. I walked in had a quick look around and I mean a quick look, then walked straight out. To say I was less then impressed would be an understatement. To me Target was depending solely on their name sake and hoping that was enough for the Canadian consumer and that was a fatal mistake for Target in Canada. I can assure you that Target is not missed here in Canada.
Another reason it failed… WALMART. Canada used to have a vast array of department stores, Kmart, Eaton’s, Woodward’s, Sears, Zellers, Army and Navy, Consumers Distributing, Woolco. While some of these are U.S. companies that also went out of business (Kmart, Sears) I’d say one of the biggest problems the big department stores across North America is how Walmart has taken over everything. And people seem to be fine with it, which really sucks.
I miss Sears, Zellers and the Army Navy store - grew up grumbling when I went shopping with my family at Kmart Zellers and Woolco but if I close my eyes I can still walk my way around each of our neighbourhood stores (and I’m in my early sixties 🤣😂) and remember what was best bought at which store - did I mention that I miss Sears and Zellers 🤔
Good video. I remember bring a kid in Edmonton when target was around, it just felt like a smaller and more posh Walmart. It was completely alien to me but it was pretty fun to walk around. The store gave me fun memories. Eventually around late 2014, the target in my mall started to close down, so the isles where sadly getting cleared out. It was kind of melancholic, there weren't many people anymore and the place was mostly empty of inventory. I still came in to play the smash 4 kiosk. I remember 1 day, I left to go home, and never went back since. Kinda sad they closed, it was a nice store
At first I was anticipating that they failed in Canada because there's a significant cultural difference in the Canadian market. But it just sounds like Target tried to move in too fast and half-assed their operations. They basically shot themselves in the foot.
I think the main reason was price, we had a target open in a popular mall in my city and it was literally just expensive Walmart.
The cultural difference aint even much lmfao. the difference is like the difference between california, NY, and Texas.
Honestly its just USELESS though. They tried to be a shittier version of Zellers.
To be honest they wrecked the whole idea of the consistency one expects from a chain retailer.
The name/branding alone is nothing if you cannot offer a predictable and consistent product and service between locations - border or no border. Before opening any one store they should have made sure it was supplied identically to an average US Target.
Old Navy gets it, 7-11 gets it… that’s why chains/brands succeed… consistency.
There's one fundamental in retail: You can't sell the man empty shelves, and the man is buying!
They needed to expand slower and have broad leadership who understands logistics over merchandizing. You need a few people to decide what to carry and sign contracts with manufacturers. You need many to utilize proper operations of inventory control.
I remember going to Target for the first time when it opened in Montreal. I disliked it right away. The agressive red colors were driving everyone crazy. It looked worse than Zellers did. It was Zellers on steroids. It was a weird experience. And it was expensive.
I remember at the time they were having a big collaboration with Isaac Mizrahi and the advertisements were all over American TV, but NONE of the Isaac Mizrahi products were available in Canada. It's weird how many of their inhouse brands weren't available in Canada.
I find this to be a common thread through American stores that do business in Canada. Michael's, Walmart, (formerly) Sears, (formerly) Toys R Us, Disney Store, etc. The amazing things we find in the US just aren't offered in our store versions. But we see the advertising (online, on TV, etc.). It's like they're trying to tease us or something. But all it does is make us angry and resentful.
I remember the Canadian Targets always made pricing mistakes‼️So I got so many deep discounts & freebies.
The USA Targets are such a fun vibe! 🎉
All I remember Target Canada were not selling the same stuffs as American Target, their products were cheap and higher prices than many other places, and there were not many options to choose, very limited stuffs to buy.
Choosing to go with SAP software to run its stores was the first and biggest error Target made. SAP is popular, but notoriously finicky and unforgiving to set up. Target was not familiar with SAP, but still chose to go it without acquiring the necessary expertise. The 2nd mistake was forcing themselves to go live even though SAP wasn't ready and people were not trained properly. They entered all their product data without validating it, the sheer stupidity of this would make any IT professional cry. The result was all the internal supply chain issues described: basically you had an inventory management system that did not recognize the product codes being ordered by stores to replenish their shelves. Result: warehouses were overflowing to the point of having to rent extra space while store shelves were empty.
Had they just done test stores of 10 or so stores in major Canadian Metros (Toronto, Ottawa/Gatineau, Montreal, Calgary, Vancouver, etc.) They would of fared better and have ironed out the kinks of logistics and store format to cater it to Canadians
As a Canadian, I was disappointed that Target failed. Not that I have any great love for Target but some good, honest competition for Wal Malt would have been nice.
Zellers in Canada (owned by Hudson Bay Company/HBC) closed up shop in 2013. Target took over most of those store leases after.
Sears Canada then ends their business 5yrs later in 2018.
Maybe the comeback of Zellers in 2023 will work out? I would definitely shop with them again if it's set up like it was before. I had no problem with their awesome deals/sales that were a big help for those living off a low income... and with that being said... Before that, Woolco (a division of Woolworth Canada) was purchased by Wal-Mart which became the big competitor when it took over in 1994 and things went downhill for most Canadian department stores after.
I hope Zellers comes back big time. I used to shop there all the time. I really miss it. Hopefully HBC will roll it out in the coming years.
I was never a big fan of Zellers, but, it gets stressful waiting for stuff to go on sale at Canadian Tire, before i buy it (I will NEVER go back to Wallmart)
Wal-Mart used the exact same strategy when they came to Canada in 1994, and their store leases in a lot of cases were in rundown locations or in shopping malls. I won't speak for all cities, but Target got prime locations in Edmonton and Calgary when they opened, including the two busiest malls in the city, as well as a solid footprint across the capital region.
As a non-border shopper, I knew about Target, but wasn't expecting the same low prices as they have in the USA, because I knew shipping, duties, taxes, etc. are different here. I think where they failed was in using a Canadian company to handle logistics instead of setting up their own, which meant their stores carried mostly the same products as their competitors, and it wasn't always cheaper than those competitors
I found Target to be okay, but not spectacular, but had hoped they would stick it out and stay in Canada.
Target's problem is they forgot Canadians travel. We shop at Target when we go to the States. We wanted the same quality and products when it came here. We got a cheap knock off
That was my experience with Target in Canada, the one time I went. I was really perplexed, at the time, as to why Americans love Target so much, but it makes sense now.
Former Target Canada employee; I was being trained with a gentleman who had an extensive background in logistics and warehouse distribution; he took one look at the way Target was implementing its warehouse to store supply chain and went straight to the GM; he was adamant that this system would cause more nightmares then it was worth. He walked away halfway through training.
It doesn't help when they start off with SAP, which is a big monster system and needs time and effort to understand how to work it. It takes years to become comfortable in SAP and they tried to launch it in a few months. In our workplace it took more than 2 years to migrate the HR function from the previous system into SAP - and that's just HR.
i worked at one of the targets when they were in canada here in hamilton. Target was not cheap i can tell you that even with my employee discount. There was too much competition around, literally you can go down the road to like a wal mart or another store and get the same items even cheaper. Not all locations had a grocery or even a pharmacy section. In my area some days were like a ghosttown. The surrounding areas where i worked were predomaniately occupied by seniors and most of them were outraged of the prices Target had. I worked in the mobile department and because it was owned by a 3rd party company, we werent allowed to assist guests in the electronic section and the electronics employees werent allowed in our tiny section. if someone wanted even like one of our phone cases or something and we were on break, the guest was SOL until we got back and the electronic employee could really do anything
The funny thing is that Zellers is trying to make a slow comeback.
Pop up stores in HBC stores, and trying the online presence first. Then hopefully opening brick and mortar stores in the coming years, if all goes well.
Bring back Zeddy 😁
Lot's of line up and excitement, then people found out everything was expensive (unlike the US stores), they deserted Target.
Target think Canadian are rich shoppers, but the reality is the reverse 😭😭. Unfortunately Target never blame themselves for using worng marketing strategy, but blame everything else.
Walmart, Costco, Canadian Tire were all successful, Target could never understand the reason for that 😰
As a Canadian I was bored going into one I had such high expectations, also I was angry losing Zellers a store I grew up loving so there was some animosity!!
We want our zellers back!!!
@@xminusone1 ❤️
Most shoppers in Canada expected Target Canada to be an extension of Target US and to be competitive with Wallmart and as an alternative source for well priced products.
For some unknown reason Target Canada's marketing heads decided not to compete with Wallmart and instead followed
a Target branding model with prices higher than Wallmart for similar merchandise. Canadian shoppers didn't buy into their marketing ploys
and instead flocked back to Wallmart stores in droves. The fact that new inventory control Target systems failed resulting in lack of merchandise
on the shelves only exasperated the situation that already existed.
I prefer Walmart I wouldn’t buy a tv or get my oil change there but you can find some good deals on shirts and pants and shoes there and they always have deals on the food and they are the only store that will still dedicate some space to display movies and video games and still have bins of the cheap deals on movies and games. Idk I’ve always shopped at Walmart for the deals and would go to Best Buy or Visions if I’m buying something premium like a tv
I won’t lie. As a former Zellers employee I was beyond angry to have lost my job for essentially no reason. The few times I went into Target I walked out empty handed.
Was looking forward to the comments after a ‘Why Starbucks failed in Australia’ video awhile back since as an Aussie I utterly loved the national pride in those comments and the comments from the locals on this video did not disappoint!!
The video was also a great explainer but the comments are what make these types of videos, both working together to show such awesome national pride and culture differences which are great to see. Keep the videos coming.
Also Target did not respect Canadian labour laws. When I worked for Target in the US they kept scheduling me during days and times when I had class. I can only imagine the bs Canadian employees had to put up with.
After having to chase HR around to get them to try and fix my schedule they fired me. They sat me down and said you need to choose between college or Target.
I had a friend who worked salary for Target in BC, Canada. He had to go to government mediation to get his overtime pay, as BC requires salaried workers be paid overtime past 40 hours per week. They definitely didn't respect Canadian labour law.
What!!!!!!
@@mammajamma4397 ?
As a Supply Chain Director for many years in Canada, it was obvious that the chain would fold from the first time I laid eyes on it.
The set up of merchandise was poorly done.
The inventory selection was terrible.
The prices were considerably higher than its competitors.
Its inventory levels were not analyzed properly.
They didn't investigate and analyze their markets by location.
Americans ran it for a Canadian market.
I could go on and on about why it was doomed for failure....
By the way, Walmart is starting to slip and I foresee it continuing to slump over the coming months and years. The only factor that will keep it afloat is that it has no real competition except for the internet.
Zellers was not a failed retailer, they were also victims of flawed Target takeover. In terms of their logistics and lack of product....they are the victims of their own making. They never should have opened all 200+ Canadian store in the same weekend. I also would argue that they were shoe horning themselves into existing locations. While yes they used existing stores they also renovated or had communities renovate to meet their requirements. There are some municipalities even now that were NEVER paid millions of dollars owed to them by Target when they filed bankruptcy.
With Target taking over leases to Zellers stores, I ended up shopping in a mall that had both a Walmart and a Target. I did some comparison shopping and found that Target was not even trying to price match the Walmart. At that point I knew Target was dead. I never went back.
There is Target in Australia and it's doing pretty well, however has no affiliation with Target USA
Is it a franchise of Target USA or a completely separate brand with the same name?
Sounds like they should merge
@@realtalk6195 A separate brand owned by the same company as former Kmart U.S. subsidiary Kmart Australia, Wesfarmers Limited, originally owned by Coles-Myer.
Half of their Target/Target Country stores in Australia were converted to new Kmart/K-Hub stores in 2021...
No affiliation is correct. Target is struggling down under though. They closed a significant amount of stores and are now still hand picking a few stores to shut down.
I went into Target in Medicine Hat after it opened. It was stocked at the time, but the problem for me was the feeling that I didn't want to be there. It felt sterile and lifeless. Stores have personalities, but the Target store had none. It was clean, orderly, staffed...but both times I went there, I walked the perimeter and left. Just didn't want to be there.
There wasn't even music playing at the one I went to in Edmonton.
I think Canadians were thinking it would either be like the ones in thr States. Especially for me who lives in a boarder town. I could fine the things in Walmart for cheaper than in Target. I can go down to the states for a day and get things cheaper than in Canada. I think I stepped into the store twice. Once for some underwear really badly and once when it was liquidating its assets at the end of its run.
I remember Target in B.C, they barely had any good sales and it was beyond stupid for them to open over 120 stores instantly when they saw Zellers was failing.
Yeah they barely had anything in those stores.
The Canadian stores looked like rebranded Zellers (which they were, although better renovations could have covered this up). Zellers was a discount retailer with similar branding, and Zellers' poor brand image immediately poisoned the well on the Target launch.
In Edmonton AB we had the stock. The Kingsway store didn't have empty shelves. The issue was that Canadians who ventured in the US saw these insane deals and discounts and regular sales and up here they were selling PS3 games that were 2 years old for $10-20 higher than other department stores and gamestores were selling new titles for.
We Canadians want our god damn Zellers back. I was excited for Target but they forgot how to target their Canadian consumers. Now we have thousands of stores empty all across our country. Some have been re used others torn down.
One of the biggest issues that was not mentioned that added to it's inventory issues was that Targets executives thought that they could ship inventory to Canada and sell it. They didn't look into the local laws regarding packaging. I remember going into one of the local stores, an over hearing an employee telling the manager that they couldn't put up the inventory as the packaging wasn't in both English and French. There was an attempt to add stickers to fix this issue, but it ended looking sloppy and there were errors as proof reading wasn't done.
Canadian here. I think Target was so busy opening over a hundred stores that they failed to take into consideration local traffic patterns. The Target that opened in my neighbourhood made that basic mistake before it even opened. They revamped the old Zellers store and created the main entrance in the corner away from the main parking lot and foot traffic that had been used by Zellers customers. Making people walk all the way around the store to get in didn’t give a good first impression. It went downhill from there.
Another factor not mentioned in this video was Target Apparel, which was an entirely separate company that applied for the Canadian trademark to the “Target” brand in 2001 and opened its first store in 2005, a full 8 years before Target moved into Canada.
When Target announced its opening of (initially) 200 stores in Canada, Target Apparel opened 10 at the same time (for a total of 15 stores, mostly in the same areas as Target locations). Target Apparel figured they could leach off the success of the Target brand and confuse customers into thinking they were shopping at the American Target. This strategy largely worked because of the red and white branding of both stores and the fact both were selling discounted clothes.
Before entering Canada, Target filed for an injunction to get Target Apparel to stop expanding, and Target Apparel filed a $250M CAD trademark infringement countersuit. The two parties settled in 2012 and Target Apparel agreed to stop using the brand name for new stores by 2013. The problem was that Target Apparel purchased lots of inventory in the gamble that their expansion would pay off, so they weren’t able to close their stores on schedule. They had better and more affordable clothing selections than Target did, so the stores were quite popular and didn’t actually close until a year after Target’s Canadian launch. That confusion hurt business in the 15 Target stores that were near Target Apparel locations.
Target Canada just felt like a watered down version of Zellers from what I remembered, their stock wasn't too interesting and the prices could not really compete with Walmart are some reasons as to why I see it failing.
I was in grade 5 and my mom basically just told me that Target basically took over from Zellers lmfao.
I just remember thinking it felt so ugly inside, too red and didn’t feel right
The one in our city used to be a zellers
A very much loved store that I still miss
So there was always a hole they could never fill.
As a Canadian, this video pretty much captures it. People were very interested in trying out Target but they became notorious for lack of inventory. Also, I have never heard of Giant Tiger.
It makes way more sense to open 1 or 2 stores and figure out the kinks for a few years before any large expansion.
giant tiger is the middle ground between dollarama and walmart
Really? You've never been in a Giant Tiger? They are small, cute stores. Carries the basics and quality is okay.
Looks like they're everywhere but BC, which explains why I haven't heard of them.
In Canada, trucking in 'merch' from the US would be more cost effective if you have multiple stores. Trouble is, they couldn't keep the shelves full with multiple stores either. Must have been a logistics nightmare.
By the time Target was here, Sears was not competition. Canadians were also tired of the poor experience that Walmart was/is now providing Canadians, after stealing most of the market.
The stores were nice, but usually empty. It was so bad, that xmas decor would show up in the spring. And camping equipment showing up in the winter. Customers will not continue to visit, if they don't have anything you want to buy. It is sad, Canada needs more competition in this area.
The biggest problem Was too much too fast. Even when Walmart came into Canada in the 90’s they started small, in one province and grew from there.
Target didn't have that many deals and few original products, the 2 things that Canadian shopper were hoping to find from Target. Walmart does have those and that is why they are successful.
To be honest the wrecked the whole idea of the consistency one expects from a chain retailer.
The name/branding alone is nothing if you cannot offer a predictable and consistent product and service between locations - border or no border.
As a Canadian who lives a half hour from the Buffalo NY border, I had shopped at Target in the U.S. and was expecting a similar setup here in Canada. What they gave us was dramatically less and crappier selection, at WalMart quality OR WORSE that cost more. We could cross the border for a day of shopping, find better items at the Buffalo Target, and even after paying any duty, be less ripped off than shopping at a Canadian Target. Target thought Canadians were suckers. We clearly showed them we are not, and it cost them dearly!
And several million Canadians live close to the border and can shop in US target.
@@nancymilawski1048 Same goes for Walmart yet they were successful up here in Canada. Target screwed up and misjudged, Canadian, shoppers,full stop.
As working at an WMS , I.T capacity with direct knowledge of their operational processes, this presentation did mention data issue. Inaccurate SKU dims and configs, coupled with incorrect location capacities at the store level, meant that their application could not generate a replenishment to the final destination location within the store level. Empty shelves
Price is key. All of the competition that is mentioned in the video, save Giant Tiger, exists in the US now. Also, Giant Tiger didn't have the footprint in that Canadian market that it does now. Canadians who had experienced Target in the US were expecting the great deals that were just not present in their Canadian stores.
The video failed to mention that Walmart went into a price war with Target Canada and protected its turf. Years later, we're still seeing the investment Walmart put into Canada with a decent website and enhanced store experience (i.e. grocery).
Price is 75% of the battle. And Target didn't come to fight. They thought the profit was already in the bag.
As many others have said: they took us for fools. But we took them to the exit.
as someone who specializes in business. I think everything they did was on purpose. they milked all the business laws here. from day 1 everyone gave them millions of dollars in loans. from the bank to Distribution companies trusting them. what people don't know (unless you're on the other side) is that target would buy things and then charge half the price day 1. how were they able to? because they were never planning on staying or paying anyone back. they want to become richer quick. make quick (free) profit. they damaged so many distribution companies. and now, we as buyers from distribution / wholesale are still suffering the consequences.
they paid nothing back screwed everyone. after them, distribution companies feared giving out product and until this day we are all paying for it.
Wow😨 I didn’t think about it
Canadian here. Biggest fail of Target was lack of its own store labels in Canada. That's all I buy when I go to Target!!
I used to go into Target (may not be connected to the US) here in Australia back in the 90s, they used to be so busy and they sold clothes that were pretty good quality and lasted. It changed they then sold crappy stuff that shrunk and the sizes were horribly wrong and didn’t fit well. They were trying to compete more on price especially during the GFC but in doing so compromised their brand. Their store layout also changed and became quite sterilised as did their streamlined product range. It was a really good middle of the road brand with an easy return policy but mismanagement killed it and it’s nowhere near what it once was. It was no longer the place to buy reasonably priced good quality clothes. They essentially lost the plot and their identity, they became irrelevant.
Very interesting comment. I actually wondered the same thing and found out they are completely separate companies but share the same name and brand look
Sounds like way too many stores for such a small population. I see a 🎯 every 25 miles
Fewer Targets than Zellers by a long shot. There were ~350 in 1999.
There are 153 Targets in Texas. And Texas has 9 million less people than Canada.
For reference, there are 402 Walmarts in Canada
@@zedxyle well - it sounded like bad business decisions by target!
They opened alot of stores too fast
Toronto is denser than most US big cities
I’m actually not sure why it failed so badly. We actually had 2 targets in my area and both were always packed all the time. Everyone I knew preferred them. They were busy from day 1 to the last day. Maybe it wasn’t the same in most places.
Are you in Nunavut? lol
Another Canadian with its two cents. We in Vancouver basically lived less than an hour from Target in Bellingham WA. As soon as Target was set to come I was sceptical. The 2 main reasons why Canadians went to target was because of the selections and pricing. I knew the pricing would not be the same and I wasn't optimistic that the Canadian stores would have the same stock. What made it worse was (at least in my area) they took control of the old Zellers location which was too small and they did not adjust to this. The killer though was the lack of stock. Bare shelves killed it for them.
One last nugget. I have worked for an American company in Canada that tried to treat their employees as they would in the States. Target did that as well. Doesn't work. Canadian workers are better protected. The location is now the home of Walmart and they are thriving. They utilzed the space well. No supply chain issues, great pricing.
Replenishment of products was a nightmare as every store only had 12 of every product in store. I worked pre-opening inventory and year-end.
Target tends to rush into things without researching first. They were excited to launch into Canada and went in without looking into things like the culture and customs. I’d say one their biggest problem is that it’s mostly run by children. They don’t put anybody with experience in some of these higher jobs. They recruit individuals right out of college and give them vital key roles within the company. The company likes to be trendy and wants to keep up with the times. Looking at future generations to keep them coming into the store. Yes the young recruits will have an understanding of what is trending, but lack the experience in the workplace. I think the company needs a better balance of both before leaping into a huge decision like Canada. There’s a lot the company does right, but Canada was their biggest mistake.
Culture and customs? There wasnt anything available on the shelf to buy. Excellent analysis, Gary.