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
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper NowTarget 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.