Target opening in Canada, why is this exciting?

[CaramonLS]

Target should have succeeded in the Canadian market. The recipe was simple, bring the products from the US Targets and put them in a Canadian store. Instead, they decide to make a nicer smelling Zellers, with a crap selection and mark the prices up.

Why the heck would anyone go there?

[Street Pharmacist]

People do realize that you cannot sell things at the same prices as in the states, right?

[CaramonLS]

Originally Posted by Street Pharmacist

People do realize that you cannot sell things at the same prices as in the states, right?

Yes, we know. But Walmart somehow makes it work.

Problem is they didn't bring the selection either.

[Street Pharmacist]

Originally Posted by CaramonLS

Yes, we know. But Walmart somehow makes it work.

Problem is they didn't bring the selection either.

I agree, I just always hear people say they would go of they were the same prices as the states, which is impossible for many if not most products

[Boblobla]

I find when I go there the shelves are mostly empty.

[Igster]

Originally Posted by Boblobla

I find when I go there the shelves are mostly empty.

And that's the biggest problem. Their prices are on par with Walmart for the most part, but the service sucks (try finding someone to help you or even a cash that isn't a self checkout) and stock is almost nonexistent, as well as choice.

Not quite sure how they thought they would be successful with that kind of stock, choice and service. They deserve to lose money and shut down.

[Northendzone]

the store in chinook also never seems busy and I have not browsed in there much to get a huge sense of thier pricing/goods offered.

wonder how long it will take for the expansion to pay off, or if they will abandon the market within the enxt 3 years or so.

[lorenavedon]

Originally Posted by Street Pharmacist

People do realize that you cannot sell things at the same prices as in the states, right?

People don't' shop at Target not because of their prices, it's because their product selection SUCKS. There is nothing I can buy at Target in Canada that I can't get anywhere else. Walmart is successful because they sell a lot of stuff people need in one store. You can go to Walmart, get socks, underwear, some tennis balls, a bit of paint and do your grocery shopping. They have a lock down on that type of service. Target offers nothing new. They're just a worse version of Walmart. In the US Target is different. You can buy different things of differing quality with greater selection. This gets people into Target in the US. That's why they fail in Canada. This was Target's business plan in Canada, "Lets open up a store kind of like Walmart but not as good, people will come in droves!"

Canadians want selection just like Americans, but we don't get it. That's why we order online as well, not just to save money. Most of the time I order online not to save money but it's because of products I just can't buy in Canada. That is why Canadian retail sucks. that's the primary reason. Not prices.

[Street Pharmacist]

Originally Posted by lorenavedon

People don't' shop at Target not because of their prices, it's because their product selection SUCKS. There is nothing I can buy at Target in Canada that I can't get anywhere else. Walmart is successful because they sell a lot of stuff people need in one store. You can go to Walmart, get socks, underwear, some tennis balls, a bit of paint and do your grocery shopping. They have a lock down on that type of service. Target offers nothing new. They're just a worse version of Walmart. In the US Target is different. You can buy different things of differing quality with greater selection. This gets people into Target in the US. That's why they fail in Canada. This was Target's business plan in Canada, "Lets open up a store kind of like Walmart but not as good, people will come in droves!"

And their out of stocks are atrocious.

My comment was pointed towards those who keep saying they'd go to target if they had the same prices as in the states (not that I've seen it in this thread)

[InSutterWeTrust]

Seems like a silly idea to spend all that money investing in the Canadian market for them to retreat the other way one year later. The executives had to realize that it would probably take some time to recoup those initial investments. They spent something like 11 Million per store renovating and building the store front. It takes time to build a brand in a new market and build customer loyalty. I do agree Target didn’t build any loyalty having stores that are half empty with unattractive prices.

Target had to have a 4-5 year strategy, but with a new CEO coming in who knows what will happen to that plan. If Target is smart they will work on getting product in the stores. Can’t make money if the shelves are empty. Not sure if it’s a distribution center issue or not getting enough product from the manufactures. Target had to spend a fortune building a logistics network in Canada, hopefully over some time they have recovered those costs and can offer a more competitive cost in the store, while keeping shelves stocked!

[CaramonLS]

One of Target's other problems is price perception. They came into the market as a 'higher end Walmart', so people do expect to pay slightly more for their products, even if their prices are actually lower than Walmart.

It will be very hard to change this perception as no one visits their stores anymore.

[Street Pharmacist]

Originally Posted by CaramonLS

One of Target's other problems is price perception. They came into the market as a 'higher end Walmart', so people do expect to pay slightly more for their products, even if their prices are actually lower than Walmart.

It will be very hard to change this perception as no one visits their stores anymore.

I read an article a couple years ago about Walmart's price perception and people honestly believe that they pay about 15% less than what they actually did when asked. I believe Safeway was the worst at 12% more tab what was paid if I engender correctly

[Cowboy89]

I get the impression they thought all they had to do to make money in Canada was to half ass it while charging higher prices than their US stores and people would flock to target.

My finace was very disappointed with visiting Target stores in Canada as she had become accustomed to their product selection and prices in the US. The version of Target in Canada is poorly stocked and missing 50-60% of the product lines that its US counterparts have. My thoughts on their business move was that they must have figured Canada was low hanging fruit and all they had to do was be better than Zellers.

[I-Hate-Hulse]

Originally Posted by InSutterWeTrust

Target had to have a 4-5 year strategy, but with a new CEO coming in who knows what will happen to that plan. If Target is smart they will work on getting product in the stores. Can’t make money if the shelves are empty. Not sure if it’s a distribution center issue or not getting enough product from the manufactures. Target had to spend a fortune building a logistics network in Canada, hopefully over some time they have recovered those costs and can offer a more competitive cost in the store, while keeping shelves stocked!

Target's Party Line of the CEO getting canned over "Security Breaches" increasing looks like BS. That's not a good enough reason to fire a CEO at at retailer - look at the many places that have had similar incidents. I suspect the Board looked at the deep hole the Canada expansion dug Target into and decided they needed someone else.

Target should have started the expansion gradually, focusing on a small number of well stocked, well serviced stores, with a limited number in each city to build on the "exclusivity" factor. When your initial stores list include Forest Lawn and Grande Prairie - you're not likely to achieve any of the factors I just listed as well as the many other good observations in this thread as to why people don't shop at Target.

Too much, too soon. But their shopping cart escalators rock!

[Resolute 14]

Originally Posted by Cowboy89

My thoughts on their business move was that they must have figured Canada was low hanging fruit and all they had to do was be better than Zellers.

Thing is, they probably weren't wrong on that thought. Problem is, they have failed to be better than Zellers. As it is, it seemed the only two things they did with most of these stores is wash the floors and replace the Zellers sign out front with a Target logo. Everything else is the same - or even worse - than before they moved in.

[puckluck2]

Originally Posted by Igster

And that's the biggest problem. Their prices are on par with Walmart for the most part, but the service sucks (try finding someone to help you or even a cash that isn't a self checkout) and stock is almost nonexistent, as well as choice.

Not quite sure how they thought they would be successful with that kind of stock, choice and service. They deserve to lose money and shut down.

Uhhh their prices aren't even close to being on par with Wal-Mart. They deserve to be out of business with how unprepared they came into this market. Did they really think we'd visit Target if their prices weren't cheaper than Wal-Mart? It's not even close and their selection does suck.

[Igster]

Originally Posted by puckluck2

Uhhh their prices aren't even close to being on par with Wal-Mart. They deserve to be out of business with how unprepared they came into this market. Did they really think we'd visit Target if their prices weren't cheaper than Wal-Mart? It's not even close and their selection does suck.

My wife and I have priced out a number of things and they all seem to be on par with Walmart. I'm not saying everything, but many things that we buy, be it grocery or other things. We've found on a number of occasions better prices on things at Target.

But again, nothing on their shelves many times and lack of selection and no one working in the stores.

For me though, it's about more competition. If we have more businesses that sell similar things, then hopefully better prices down the road and more competition. Canada needs more of this in every industry.

[Troubamaker]

There hasn't been this big of a letdown in Calgary since Feaster said Cevrenka was the best player not in the NHL.

[Street Pharmacist]

Originally Posted by puckluck2

Uhhh their prices aren't even close to being on par with Wal-Mart. They deserve to be out of business with how unprepared they came into this market. Did they really think we'd visit Target if their prices weren't cheaper than Wal-Mart? It's not even close and their selection does suck.

That's perception, not reality. Their KPIs are very close

[Street Pharmacist]

Originally Posted by Igster

For me though, it's about more competition. If we have more businesses that sell similar things, then hopefully better prices down the road and more competition. Canada needs more of this in every industry.

The level of competition in the retail sector in Canada has ramped up immensely in the last 2 years especially. So much so analysts universally are calling it unprecedented. If you add up all the targets opened plus all the Walmart expansion in the last two years it's a giant increase in sq ft. The Walmart expansions alone are more square feet than all 1300 shoppers drug Mart stores combined. That's massive