Target Canada : Only One Chance for a Bulls Eye
2014 has come and gone and Target still hasn’t taken off in Canada. Following the acquisition and renovation of 125 Zellers stores in 2013, Target aimed high with 133 big box stores under its banner by the end of 2014! Now they had to revive the anemic Zellers customer base and boost buying habits among consumers who already have a glut of big box stores like Walmart, Costco, and Loblaws to choose from.
The Failure :
Target got off to a rough start and made a mixed impression on the Canadian public. Buyers weren’t happy to find newly launched products – a retailing mainstay – already sold out. And then prices seemed to be higher than Walmart, their direct competitor. Yet Target is known in its domestic market for the latest products at the lowest prices. As their slogan says, Expect more. Pay Less.
The upshot: strong early interest, quashed by mostly empty shelves and stores. Nothing for Canadian consumers to get excited about. Just not enough buzz…
The Moral :
With the boom of discount stores and e-commerce, today’s retailers can’t take anything for granted. And it’s always hard for any banner to penetrate new markets. So it makes sense to tread carefully, open just a few stores, test the market, then go for growth. Logistical errors and mixed perceptions are harder to handle once they are widespread.
Dispatch: January 15 8:33 am
Target announces closure of all 133 Canadian stores.
Image Source : Huffington Post