The retailer hired a new CEO and replaced the president of its Canadian operation to try to execute a turnaround. But its efforts failed. Here’s what went wrong with the expansion: 1 . Target store locations in Canada are less than ideal.
There are many attempts at explanations… Some blame a botched supply chain that piled up goods in warehouses due to mismatched bar codes. Some say it was an ill-timed and well publicized data breach . Others point to prices that weren’t competitive and merchandise that was consistently out of stock.
One idea is that the main culprit behind the Target Canada supply chain failure wasn’t a lack of effort . Here are a few lessons that team leaders can reference as they plan their own business transformation. Set Realistic Expectations From the very beginning, Target was working with a lofty order.
Another frequent query is “Why choose targets Canada?”.
About three-quarter of Canadians live within 160 km (100 mi) of the US border, and with increasing allowances of bringing back products, Canadian’s frequently visited Targets south-of-the-border and generally viewed the company with high regard.
But the reality is that most Zellers stores were dumpy, poorly configured for Target’s big-box layout, and were in areas not frequented by the middle class customers Target covets. And inheriting many awful locations from a dying low-end retailer was at the heart of the damage to Target’s cheap-chic allure in Canada.
What went wrong at Target Canada?
Some things Target Canada failed to consider that may have led to employee and customer dissatisfaction : 1. When in Rome… …do what the Romans do. Or in this case, the Canadians.
Why are target’s new stores failing?
The new stores also struggled with distribution challenges and shelf replenishment , leading to stock-outs. Particularly for Canadians familiar with Target, the poorly stocked shelves, an assortment that differed from the U. Stores’, and, often, higher prices than in the U. All combined to discourage traffic.
What went wrong at Target?
Shoppers complained of empty shelves and a lack of selection. The company had been working to improve its inventory management, but it was too little too late . Former Target Canada president Tony Fisher leads the media on a tour of a Target retail store in Guelph Ontario Monday, March 4, 2013.
Why did target stop selling in Canada?
Target is abandoning its $4.4 billion expansion into Canada after less than two years, the company announced Thursday. The retailer is pulling out of the country after racking up more than $2 billion in losses . Target had promised investors that the Canadian business would be profitable by the end of 2013.
One query we ran across in our research was “Why isn’t target online shopping in Canada?”.
An answer is that canadian retailers have been slow to adopt e-commerce , but Target’s lack of online shopping in Canada came at a time when rivals like Wal-Mart and Amazon have expanded their online offerings here. Target’s biggest problem in Canada was their non-functioning website.
Less than two years after opening there, Target announced last week that it would close its 133 Canadian stores . Some Canadian Target customers responded emotionally to the news on Target Canada’s Facebook website (“totally heartbroken,” “please don’t go,” “good riddance,” “you obviously don’t understand Canadians”).