Target opening in Canada, why is this exciting?

[Igster]

Yup...and it benefits us, the consumers. I think it's awesome.

Now more competition with cellular services and cable/satellite and I would be happy.

I know, neither of those two will ever happen though...

[photon]

I assume they don't offer the same selection of products as they do in the US because they cannot. Like a provider of a line of clothing they have in the US doesn't want to sell their product in Canada, or can't because they aren't certified and they don't want to pay to have it certified, or whatever.

[bizaro86]

Originally Posted by photon

I assume they don't offer the same selection of products as they do in the US because they cannot. Like a provider of a line of clothing they have in the US doesn't want to sell their product in Canada, or can't because they aren't certified and they don't want to pay to have it certified, or whatever.

A lot of stuff costs more in Canada due to gov't regulation. The classic example is milk/cheese, which are much more expensive here than almost anywhere else due to supply management. It's not realistic to expect Target to sell stuff at a loss due to stupid gov't policy just to match their US prices.

[bizaro86]

Originally Posted by Street Pharmacist

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

That's mostly true, but most of the Targets are replacing Zellers stores, which isn't new retail square footage.

[photon]

Originally Posted by bizaro86

A lot of stuff costs more in Canada due to gov't regulation. The classic example is milk/cheese, which are much more expensive here than almost anywhere else due to supply management. It's not realistic to expect Target to sell stuff at a loss due to stupid gov't policy just to match their US prices.

That can't be all of it though, the selection of products must be limited somehow otherwise they'd have many of the same products as the US store just priced for the Canadian market.

[Reaper]

Originally Posted by bizaro86

A lot of stuff costs more in Canada due to gov't regulation. The classic example is milk/cheese, which are much more expensive here than almost anywhere else due to supply management. It's not realistic to expect Target to sell stuff at a loss due to stupid gov't policy just to match their US prices.

Actually we have a federal dairy commission and provincial dairy marketing boards which are involved with industrial milk pricing.

In the United States dairy farmers receive subsidies from the government. Couple that with allowing dairy cows to be pumped full of hormones results in a large supply of available dairy. That keeps the price low.

[Street Pharmacist]

Originally Posted by bizaro86

A lot of stuff costs more in Canada due to gov't regulation. The classic example is milk/cheese, which are much more expensive here than almost anywhere else due to supply management. It's not realistic to expect Target to sell stuff at a loss due to stupid gov't policy just to match their US prices.

It's a lot more than policy though. Wages are higher, supply chain more expensive, population density etc, etc. There's lots of reasons

[Street Pharmacist]

Originally Posted by bizaro86

That's mostly true, but most of the Targets are replacing Zellers stores, which isn't new retail square footage.

It kind of was expected to be as Zellers was generally considered a poor performer and target was expected to outperform then. As for market activity their arrival was the impetus for Walmart expanding

[bizaro86]

Originally Posted by Reaper

Actually we have a federal dairy commission and provincial dairy marketing boards which are involved with industrial milk pricing.

In the United States dairy farmers receive subsidies from the government. Couple that with allowing dairy cows to be pumped full of hormones results in a large supply of available dairy. That keeps the price low.

So your position is that we don't have supply management here for dairy?

Or that it is beneficial?

Do you mind if I ask whether you or a relative is a dairy farmer or otherwise involved in the dairy industry?

I've never heard a defense of the existing system from someone who wasn't benefiting from it.

[FlamesAddiction]

Woolworths, Woolco, Zellers and now Target.... It shouldn't be a surprise to anyone that these lower tier department stores don't last in Canada anymore.

Canadians in general are creatures of habit when it comes to retail behavior.

[Reaper]

Originally Posted by bizaro86

So your position is that we don't have supply management here for dairy?

Or that it is beneficial?

Do you mind if I ask whether you or a relative is a dairy farmer or otherwise involved in the dairy industry?

I've never heard a defense of the existing system from someone who wasn't benefiting from it.

I'm not saying there aren't dairy supply chain management issues here in Canada. I'm just saying there are more factors in play that result in our higher dairy prices.

I am not related to anyone in the dairy industry.

[bizaro86]

Originally Posted by Reaper

Actually we have a federal dairy commission and provincial dairy marketing boards which are involved with industrial milk pricing.

In the United States dairy farmers receive subsidies from the government. Couple that with allowing dairy cows to be pumped full of hormones results in a large supply of available dairy. That keeps the price low.

The US is a red herring. Our milk is also more expensive (dramatically) than in New Zealand, Australia, the EU, Russia, Turkey and China. Milk prices in Canada are comparable to the agricultural powerhouse of South Korea.

The cost of quota inflates the cost of milk. The safety argument is ridiculous, we regulate safety in every other type of product, there is no reason why producing less milk makes the milk we do produce safer. Add some money to the budget for inspectors and liberalize the rules, we'll have more cheaper milk that's just as safe.

Of course, I'm not a dairy guy, just someone who thinks its unfair that all canadians (including the low income) are paying higher prices for a basic need to subsidize wealthy dairy farmers.


source for stats above: http://www.globaldairyfarmers.com/we...0(General).pdf

[lorenavedon]

Originally Posted by Street Pharmacist

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

Canada needs competition in product selection not prices. We don't need 100000 stores all selling bottles of coke or pepsi anywhere from $1 to $1.10... Big deal. We need more stores selling something OTHER than coke or pepsi. We don't need 10000 electronic stores all selling the same 5 models of TVs. We need stores selling the other 20 models of TVs that you can get in Europe or Asia. We don't need 10000 car dealerships all selling the same 3 car models. We need car dealerships selling the 20 models you can get in Europe or Asia. There are 30 different laptop models with different specs that might fit you. But in Canada you only get 3 laptop models and the rest are in Europe or Asia. Target came here and offered nothing different. That's the problem. If I go to a new store it's to buy new things. Not to see the same thing plus minus a few pennies. This is the problem with Canadian retail. Not price.

[Reaper]

Originally Posted by bizaro86

The US is a red herring. Our milk is also more expensive (dramatically) than in New Zealand, Australia, the EU, Russia, Turkey and China. Milk prices in Canada are comparable to the agricultural powerhouse of South Korea.

The cost of quota inflates the cost of milk. The safety argument is ridiculous, we regulate safety in every other type of product, there is no reason why producing less milk makes the milk we do produce safer. Add some money to the budget for inspectors and liberalize the rules, we'll have more cheaper milk that's just as safe.

Of course, I'm not a dairy guy, just someone who thinks its unfair that all canadians (including the low income) are paying higher prices for a basic need to subsidize wealthy dairy farmers.


source for stats above: http://www.globaldairyfarmers.com/we...0(General).pdf

Great points with a supporting source. Refreshing like a cold glass of milk.

[Hack&Lube]

Originally Posted by lorenavedon

Canada needs competition in product selection not prices. We don't need 100000 stores all selling bottles of coke or pepsi anywhere from $1 to $1.10... Big deal. We need more stores selling something OTHER than coke or pepsi. We don't need 10000 electronic stores all selling the same 5 models of TVs. We need stores selling the other 20 models of TVs that you can get in Europe or Asia. We don't need 10000 car dealerships all selling the same 3 car models. We need car dealerships selling the 20 models you can get in Europe or Asia. There are 30 different laptop models with different specs that might fit you. But in Canada you only get 3 laptop models and the rest are in Europe or Asia. Target came here and offered nothing different. That's the problem. If I go to a new store it's to buy new things. Not to see the same thing plus minus a few pennies. This is the problem with Canadian retail. Not price.

This is a problem with supply chain, middle-men, vendors, importers, etc. and not the store. Most of the stuff you want isn't available in Canadian-compliant packaging or passed regulations. Ultimately, Wal-Mart and Target Canada source their goods from the same wholesalers who supply stuff produced for the Canadian market.

[Hack&Lube]

Originally Posted by FlamesAddiction

Woolworths, Woolco, Zellers and now Target.... It shouldn't be a surprise to anyone that these lower tier department stores don't last in Canada anymore.

Canadians in general are creatures of habit when it comes to retail behavior.

The middle-> higher tiers have failed too. Woodward's, Eatons, Sears (dying in the US, will die in Canada), etc. Nordstrom's is coming in to compete with the Bay and maybe Holt? HBC is trying to diversify up-market as well. They bought Sak's Fifth Avenue and are introducing that into the Toronto Market.

On the very low end, Dollarama is a big success story. They are out-growing Wal-Mart in many figures I've seen.

[I-Hate-Hulse]

Somewhat related: Jacob women's wear stores are filing for bankruptcy and closing 92 stores in Canada.

Where will Asian women in Calgary shop now?

[Handsome B. Wonderful]

Originally Posted by I-Hate-Hulse

Where will Asian women in Calgary shop now?

Same place as usual, H&M.

[Envitro]

Or Aritzia

[puckluck2]

Or the other 95% womem dominated stores in malls.