Target shutting down in Canada

[habernac]

well that was quick...

http://www.theglobeandmail.com/repor...ticle22458161/

[Krovikan]

The one that I go to once in a while at Market Mall, I can see why they are having issues, the quality of their clothing compared to the price doesn't match, they either need to increase the quality or reduce prices. I would rather spend a bit more at sears and have Jeans last 2 years then maybe 6 months if I'm lucky. They also up until recently had a severe lack of staff, lack of stock, lack of selection or consistent selection. This all somehow in a massive store. Add in their reward system which forces you to bank with them. Add in their horrible website that I am not able to search for items, plus massive popup asking me to sign up at the start.

For them saying no realistic scenario for profitability, listen to your customers these complaints have been their from many customers the entire time.

[Calgary14]

I can't say I'm surprised. The stores are almost empty each time I've gone in there

[Resolute 14]

Target Canada's philosophy was basically "Zellers, but with polished floors". They routinely failed to keep their stores properly stocked and they figured Canadians would accept higher prices because the Target logo apparently means something. Turns out it didn't.

[Finger Cookin]

Oh well. Surprised it has been two years already. Never went into a Target here.

[Resolute 14]

I think they lost $2 billion operating in Canada, and will apparently lose another $5.4 billion in the 4th quarter of their fiscal year to pull out.

That is a very expensive lesson in why one should not treat Canadian consumers like idiots.

[Ne7en]

Too bad. Target is miles ahead of Walmart. I can't stand Walmart.

[mrkajz44]

This will probably turn into a good case study for business students. We always focused on the big successes and the big failures. And this was a massive failure.

[Calgary14]

Targets main issue was that they couldn't compete with wal marts rock bottom prices on most items

[Ducay]

Originally Posted by Resolute 14

That is a very expensive lesson in why one should not treat Canadian consumers like idiots.

Idiots? They operated the stores according to their business model, which happened to be unsustainable at Canadian prices. This is a logistics and pricing problem, not target thinking Canadians will pay anything to shop at Target because its from the States. Canada is far too large and decentralized.

[RedMileDJ]

Originally Posted by Calgary14

Targets main issue was that they couldn't compete with wal marts rock bottom prices on most items

I think it was more than that.

Supply Chain issues.
Unrealistic customer expectations on prices.
Canadian dollar.

[WilsonFourTwo]

Pretty underwhelmed by Target. Although 133 stores in under 2 years.....they certainly weren't shy about securing a physical presence.

People were expecting a mini-revolution in Canadian retailing when they arrived, but it ended up being a lot of empty promises/shelves. And the shelves that were stocked had the same old stuff (mostly junk) as every other Big Box Retailer at the same prices.

Meh. Thanks for trying at least?

[SuperMatt18]

The biggest issue here was supply chain issues, and the false customer expectations.

People thought we would actually get the Target U.S. prices and experience, when all we really got was a re-skinned Zellers.

Feel bad though as 17k people are out of work today.

[Hevishot]

Maybe now I can go in there and get some cheap american target deals!

[The Big Chill]

I really like target. I find decent enough quality, inexpensive clothing there that actually fits me. I also like the shopping experience much more then Walmart. I'm kind of disappointed to hear this news.

[RedMileDJ]

17,000 job gone. I feel bad for the employees. They just said on Global that all employees will receive 16 weeks of compensation.

[InglewoodFan]

I was happy with the Target near my place, the lack of stock problem seemed to be getting better and I liked the quality. But trying to pay for something was a trying experience. Half a dozen people deep at the one open cashier, fourteen closed tills, and a manager who radioed for someone to come open another one but then left without following up. Dude, open the till yourself!

This was a couple of weeks ago, wonder if the writing was already on the wall and people were just phoning it in. Feel bad for the 17k people staring down unemployment this morning.

Best thing about Target - it kept the wife from dragging me to Wal-Mart or Superstore.

[ken0042]

Originally Posted by RedMileDJ

I think it was more than that.

Supply Chain issues.
Unrealistic customer expectations on prices.
Canadian dollar.

While I agree with the supply chain issues, I know the biggest reason why I didn't shop there was their lack of a real website. 90% of the time when I am going out to buy something, I look online first. With Target being new to Canada it isn't like everybody knows what they sell. Even with a circa 2005 Canadian Tire website they would have been miles ahead of coping Soundsaround's idea for a website.

[Northendzone]

it will be interesting to see how/if this affects any future forays into canda by US retailers (although i am not sure who is elft to come into canada)

[Ducay]

@StuMillsCBC

Not since the War of 1812 have Canadians so successfully repelled an American invasion.
7:13 AM - 15 Jan 2015

/thread