Target stores are the destination points for Canadians on shopping excursions to the USA

Target stores are the destination points for Canadians on shopping excursions to the USA

Target’s Failure in Canada

Target stores are the destination points for Canadians on shopping excursions to the USA

It holds 2nd position after Walmart in USA

They want to expand their businesses and become competitive.

Therefore, they planned to enter into Canada.

They has a question.

How could it provide the same level of service as it did in the USA?

Target’s Failure in Canada

1 Idea – Getting Canadians accustomed to ‘one-stop shopping’

2 Idea – being aggressive to open more stores in 2013

They discovered that Canada had a shortage of retail space.

To solve this issue, Target followed at Walmart did 20 years ago (buy locations of an ailing discount chain).

It approached Zellers (Major discount chain in Canada) and leased 220 locations approximately

Target’s Failure in Canada

The average size of the locations was 100,000 sqft that was half of the size of the target store in USA

They also invested on building more locations

They invested about $4 billion in Canada

They opened 124 stores in Canada aggressively.

In 2014, they announced that it will shut down all the stores

Because of this, they lost $2 billion

There were mistakes in Target side.

They misread the market

They made false assumption about customers’ habits

Target’s Failure in Canada

Canadians did not like ‘one-stop shopping’

Canadians disliked Target as the prices were higher than USA stores

They also had some supply chain issues

Empty shelves

Excess inventory leading to clearance sales

The post Target stores are the destination points for Canadians on shopping excursions to the USA appeared first on graduatepaperhelp.

 

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