Topic > Target Canada Case Study - 1092

An unenthusiastic response to Target's expansion into Canada has led to surprisingly low success rates this year. The recent rollout of 127 stores nationwide cost the company nearly $1 billion in retail sales. Although the future of Target Canada appears to be bleak, it is with the hope that by providing the public with adequate knowledge about the company and its plans for the future, they will be encouraged to support this potentially booming discount retailer. Tuesday, March 5, In 2013, Target was expected to open its first Canadian stores, located in Guelph, Fergus and Milton, Ontario. There was excitement for the arrival of large retailers and many anxiously awaited their grand opening. U.S. brands such as Sonia Kashuk Cosmetics, Nate Berkus' furniture line and Peter Pilotto's affordable swimwear line were present in Target's inventory. Ontario's expansion was expected to continue through March and April, then move westward. Executives hoped to open 125-135 stores in 2013 and continue adding more next year. In need of space, Target Corp. purchased the Zellers sites for $1.82 billion, resulting in 220 of their stores set to replace the old Zellers locations. “Zellers tried to get his house in order,” said Ken Wong, a professor at Queen's University School of Business. “They just had a number of big disadvantages. When you compete with Walmart and Costco on one side and Shoppers Drug Mart on the other, it seems like everyone gets a little piece of each side.” Zeller's financial decision to admit defeat left many jobless. Sharon Singleton of the Toronto Sun writes: “The expansion will create thousands of jobs in Canada, in… half of the paper… ration of acceptance and confidence they have for their future recovery. While Target Canada has struggled throughout 2013, it would appear that they are taking action and working hard to actively improve their company as a whole. Head of Merchandising Kathee Tesija talks about the company's recovery. “Historically we intended to work on our novelty until we felt we had brought it to the most complete level, and then we would put it into the pilot phase. Now we want to introduce it to our guests very quickly, know their reaction so we can tune it much more quickly and then we can move to launch it at a much faster pace. To the average consumer, it may seem like Target has failed. But this is simply not the state of mind of a good Canadian. Isn't it our motto to root for the underdogs? The decision is up to you. Target is a future failure or success?