Target to exit Canada
January 15, 2015 | By Mike Troy
Just six months after being named chairman and CEO of Target, Brian Cornell is pulling the plug on the retailer’s 133 unit Canadian operation and will incur a $5.4 billion pre-tax loss in the fourth quarter to do so.
Target said it plans to discontinue operating stores in Canada through its indirect wholly-owned subsidiary, Target Canada Co. and that it had filed an application for protection under the Companies’ Creditors Arrangement Act (the “CCAAâ€) with the Ontario Superior Court of Justice in Toronto.
“After a thorough review of our Canadian performance and careful consideration of the implications of all options, we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021,†Cornell said. “Personally, this was a very difficult decision, but it was the right decision for our company. With the full support of Target Corporation’s Board of Directors, we have determined that it is in the best interest of our business and our shareholders to exit the Canadian market and focus on driving growth and building further momentum in our U.S. business.â€
Target currently operates 133 stores and employs 17,600 people throughout Canada. The company is seeking court approval to make a voluntary $59 million cash contribution into an employee trust that would allow employees to receive a minimum of 16 weeks compensation.
“The Target Canada team has worked tirelessly to improve the fundamentals, fix operations and build a deeper relationship with our guests. We hoped that these efforts in Canada would lead to a successful holiday season, but we did not see the required step-change in our holiday performance,†said Cornell. “There is no doubt that the next several weeks will be difficult, but we will make every effort to handle our exit in an appropriate and orderly way.â€
(This is a developing story with more details to come)
I had a feeling that Cornell wouldn't wait too long after the holidays to pull the plug. Some will say he gave up too soon, but Target has its own problems at home and a projected six years to turn around a struggling subsidiary is too long to wait. It will be interesting to see what becomes of the store locations in the months and years to come.
What a story!!
I was expecting a couple store closures and a plan to try to turn the company around but they decided to just pull the plug right away.
I can't believe the amount of money and effort just thrown away, all the renovations, new equipment, stores, leases, DCs, marketing, offices, staff, IT system, credit card, pharmacy deals and more.... to be written off after only 2 years!
Quote from: muppethammer26 on January 15, 2015, 03:37:04 PM
Looks like Zellers did a big mistake. Selling all of their stores to Target in 2013, only to close two years later. Looks like Walmart will have a monopoly on discount chains in Canada.
Not really. There are a bunch of smaller discount chains in Canada that we don't have in the U.S. like Canadian Tire being the largest.
(From what I have been told, Walmart is seen as a somewhat 'upscale' store compared to the other Canadian discounters.)
Hudson's Bay Co. sold Zellers leases to Target and for them (HBC) it was a pretty good deal because Zellers was slowly dying against the stiff competition of Walmart.
It was surreal to shop at Target tonight and to think that within a few weeks everything will be gone forever! Unbelievable... a brand new store that local shoppers started to get used to will be gone with the entire canadian division...
A very sad end...
I agree that this is sad news to hear, that all these shiny new stores will be empty, abandoned, and forgotten pretty soon.(unless another chain acquires the stores) I think it's safe to say this venture was a failure.
(https://c2.staticflickr.com/8/7371/9660182792_6ee59c61ec_c.jpg)
Opening soon........ September 17, 2013
Sears Canada is offering jobs to Canadian Target employees.
http://globalnews.ca/news/1777927/sears-canada-offering-jobs-discounts-to-target-workers/
Marc's Note: It's a nice gesture that Sears Canada is making, but are they doing any better than their USA counterpart?
Quote from: Marc B on January 17, 2015, 06:35:00 PM
Sears Canada is offering jobs to Canadian Target employees.
http://globalnews.ca/news/1777927/sears-canada-offering-jobs-discounts-to-target-workers/
Marc's Note: It's a nice gesture that Sears Canada is making, but are they doing any better than their USA counterpart?
Sears Canada is in trouble and may close too... not sure that former Target employees will want to go there, especially if they lived the Zellers closing and Target closing.
I wonder if this opportunity will prompt Walmart Canada to reevaluate its go-to-market strategy and consider experimenting with smaller formats like the Neighborhood Markets it operates in the USA. I also wonder if the growing speculation about an impending Canadian recession due to plunging oil prices might have had an impact on Target's decision to cut its losses now.
Quote from: retailisking on January 18, 2015, 03:38:11 PM
I wonder if this opportunity will prompt Walmart Canada to reevaluate its go-to-market strategy and consider experimenting with smaller formats like the Neighborhood Markets it operates in the USA. I also wonder if the growing speculation about an impending Canadian recession due to plunging oil prices might have had an impact on Target's decision to cut its losses now.
Yeah the outlook in Canada appears to be less appealing with these lower oil prices.
Canada apparently was a good bet when Target made their move but things changed since then. Target waited too long to come here and when they did, they moved in too big too fast.... with a long waiting period when they created very high expectations (and when Zellers shoppers went elsewhere and competitors got ready)
Walmart Canada will expand even more for sure, not sure about the Neighborhood Markets thing, but they did open smaller stores in former Zellers stores already so we can expect to see that with some former Target stores.
Maybe someone will take a few of those stores and start a small chain called 'Ames' or 'Red Owl'.
All Starbucks Coffee in Canadian Target stores are closing for good tonight at 8PM!!
Quote from: JimSawhill on January 21, 2015, 07:30:55 AM
Maybe someone will take a few of those stores and start a small chain called 'Ames' or 'Red Owl'.
In your dreams. :D
Could Zellers make a limited comeback in some closing Target locations? There are a couple Zellers still operating in Canada; currently they function as liquidation centers for HBC.
They should sell the Canadian Target in the English-speaking provinces to Tesco, and the stores in the Frenc-speaking provinces to Carrefour.
Both Tesco and Carrefour have tried and failed in North America; they're not about to try again anytime soon.
Quote from: retailisking on January 24, 2015, 12:14:14 AM
Could Zellers make a limited comeback in some closing Target locations? There are a couple Zellers still operating in Canada; currently they function as liquidation centers for HBC.
I also thought about that... All Target stores are freshly renovated from floor to ceiling, they contain brand new fixtures, HBC could easily bring back Zellers in these stores and this time, all stores would look fresh and modern!
HBC is already in business and knows how to run a discount store chain, they have the distribution network and they know the market and vendors.
For them it would be very easy and personally I feel it would probably work. I'm sure there is still a market out there for larger discount stores at these locations.
Zellers had 273 stores at the time of the sale to Target. Remember that Zellers kept 64 stores after the sale but later decided to close them anyway becuase they were too scattered and odd sizes.
The Target stores are normally the best sites, and apparently for many Zellers was a beloved brand so it could be an idea to bring the brand back as a smaller 100-store chain
Quote from: retailisking on January 24, 2015, 12:59:56 AM
Both Tesco and Carrefour have tried and failed in North America; they're not about to try again anytime soon.
I forgot about that.
-----------------------
Maybe Meijer can buy a few of the former Target stores in Ontario, including stores in Windsor, London, and in the Toronto suburbs, as well the Target locations in Sault Sainte Marie. Some locations could become Kohl's, while others could become Canadian Tire or Big Lots (only if Big Lots wants to enter Canada). Maybe they could establish a new retail chain altogether to compensate for the loss of Zellers, then Target (Canmart, Canuck's, Mountie Mart, Canadian Discount, etc.).
I call the failiure of Target in Canada "Bullseyegate".
Quote from: ShopKoFan on January 24, 2015, 08:09:39 AM
Maybe they could establish a new retail chain altogether to compensate for the loss of Zellers, then Target (Canmart, Canuck's, Mountie Mart, Canadian Discount, etc.).
I got name ideas for a new retail chain in Canada
. Canada's Mega Saver Mart
. Canuck Mart
. Magic Mountie Marketplace
. Can-Lo Mart
. Canucky's
why didnt Target give it a chance? and what if I go to a Target in Cananda in March, how much will be left?
Quote from: ShopKoFan on January 23, 2015, 10:55:34 PM
Quote from: JimSawhill on January 21, 2015, 07:30:55 AM
Maybe someone will take a few of those stores and start a small chain called 'Ames' or 'Red Owl'.
In your dreams. :D
I know I'm dreaming...I wish someone would reestablish Ames and Bradlee's. Caldor is back...
Quote from: JimSawhill on January 31, 2015, 09:47:21 AM
Quote from: ShopKoFan on January 23, 2015, 10:55:34 PM
Quote from: JimSawhill on January 21, 2015, 07:30:55 AM
Maybe someone will take a few of those stores and start a small chain called 'Ames' or 'Red Owl'.
In your dreams. :D
I know I'm dreaming...I wish someone would reestablish Ames and Bradlee's. Caldor is back...
Or how about bringing back Zellers?
when does the one in Sherbrooke close?
Here's the update:
Clearance sales will begin tomorrow, February 5th
By mid May everything and everyone will be gone and anything Target Canada will be history.
But stores are generally expected to close by April with smaller stores possibly closing sooner and shipping remaining inventory to other stores.
Quote from: Zayre88 on February 04, 2015, 06:48:30 PM
Here's the update:
Clearance sales will begin tomorrow, February 5th
By mid May everything and everyone will be gone and anything Target Canada will be history.
But stores are generally expected to close by April with smaller stores possibly closing sooner and shipping remaining inventory to other stores.
what ones will close early, will they all still be there in mid march?
Impossible to say at this point.
Remote stores and smaller stores will likely close early.
Fresh and frozen food has stopped being delivered at stores since the announcement.
Apparently 26 stores have stopped receiving shipments altogether.
Others are flooded with any merchandise left at DCs
Quote from: Zayre88 on February 04, 2015, 08:25:33 PM
Impossible to say at this point.
Remote stores and smaller stores will likely close early.
Fresh and frozen food has stopped being delivered at stores since the announcement.
Apparently 26 stores have stopped receiving shipments altogether.
Others are flooded with any merchandise left at DCs
what do you mean remote stores? What of urban stores like Montreal?
Quote from: danfifepsu on February 04, 2015, 09:03:01 PM
Quote from: Zayre88 on February 04, 2015, 08:25:33 PM
Impossible to say at this point.
Remote stores and smaller stores will likely close early.
Fresh and frozen food has stopped being delivered at stores since the announcement.
Apparently 26 stores have stopped receiving shipments altogether.
Others are flooded with any merchandise left at DCs
what do you mean remote stores? What of urban stores like Montreal?
a long way away from a major city, in smaller markets, where Target will want to exit quickly
Quote from: Zayre88 on February 05, 2015, 06:14:48 AM
Quote from: danfifepsu on February 04, 2015, 09:03:01 PM
Quote from: Zayre88 on February 04, 2015, 08:25:33 PM
Impossible to say at this point.
Remote stores and smaller stores will likely close early.
Fresh and frozen food has stopped being delivered at stores since the announcement.
Apparently 26 stores have stopped receiving shipments altogether.
Others are flooded with any merchandise left at DCs
what do you mean remote stores? What of urban stores like Montreal?
a long way away from a major city, in smaller markets, where Target will want to exit quickly
what of SHERBROOKE??? Whatll be of that one in a month??? also, this Target and Zellers buy out is like Ames Zayre. and I went to a Zellers once and it was just like Target.
Reminds me of the closing of Zellers not that long ago!
The difference, nicer merchandise and everything is brand new...
(https://c1.staticflickr.com/9/8601/15833238743_9a191fc925_c.jpg)
whatll the status of target be a month from today.
just as Target exits the Canadian market Wal-Mart comes charging in with a vengeance
http://www.cbc.ca/news/business/walmart-canada-plans-29-new-stores-in-340m-expansion-1.2953020
show me pics of the toy isle and electronics. OK TArget in Canada closed sooner than I thought, I gave it till 2016. Will TArget try again in Canada someday, What of bringing back Zellers. Zellers was similar to Target I thought. This is like the Ames Zayre train wreck.
Whaddya know....I can actually read those signs!
Kudos to the late Mr. Rebersak, my high-school French teacher!
9 days to go for our local store, one of 16 to close by March 22, 2015. They essentially packed and shipped most of the merchandise left to larger stores in Quebec City. We won't get to see merchandise being liquidated at 90% off...!
(https://c4.staticflickr.com/8/7614/16811694675_c1d44c78d1_c.jpg)
Quote from: Zayre88 on March 14, 2015, 09:12:55 AM
9 days to go for our local store, one of 16 to close by March 22, 2015. They essentially packed and shipped most of the merchandise left to larger stores in Quebec City. We won't get to see merchandise being liquidated at 90% off...!
.
Probably makes sense with the large scale closing like this, and likely more people seeing (and hopefully buying) the items in the larger areas.
Quote from: BillyGr on March 15, 2015, 01:45:27 PM
Quote from: Zayre88 on March 14, 2015, 09:12:55 AM
9 days to go for our local store, one of 16 to close by March 22, 2015. They essentially packed and shipped most of the merchandise left to larger stores in Quebec City. We won't get to see merchandise being liquidated at 90% off...!
.
Probably makes sense with the large scale closing like this, and likely more people seeing (and hopefully buying) the items in the larger areas.
Yeah, they also stopped deliveries to the smaller and more remote stores when they began to empty the warehouses.
Instead of operating smaller stores for too long with merchandise moving less quickly it does make sense at some point to transfer anything left to larger stores and close them earlier.
Target Canada has closed 16 stores already. 20 more will close by April 1st
(https://c1.staticflickr.com/9/8693/16329855283_5ac51a46dc_c.jpg)
Quote from: Zayre88 on March 27, 2015, 06:53:06 PM
Quote from: danfifepsu on February 03, 2015, 08:56:25 AM
when does the one in Sherbrooke close?
in 4 days
show me pics of the Toy department at TArget Canada. I feel Target And Zellers were similar, why dont they sell the stores to Zellers and reopen Zellers. does the CAnada retail market go bad or something?
so ends a a chapter as Target in Canada is gone. 2 years only wow.
That collapse was twice as fast as Ames' four-year sojourn into Michigan.
Quote from: TheFugitive on April 13, 2015, 07:33:10 AM
That collapse was twice as fast as Ames' four-year sojourn into Michigan.
what if TARget stayed longer? And does anyone have any pics of the toy debt at TArget in canada and how it differed from us stores?
That's like Caldor built 3 brand new stores in 1994 in Syracuse area and closed them in 1996
Quote from: shakethis1234 on April 13, 2015, 05:13:21 PM
That's like Caldor built 3 brand new stores in 1994 in Syracuse area and closed them in 1996
what went wrong with that?
Quote from: danfifepsu on April 13, 2015, 08:09:31 PM
Quote from: shakethis1234 on April 13, 2015, 05:13:21 PM
That's like Caldor built 3 brand new stores in 1994 in Syracuse area and closed them in 1996
what went wrong with that?
Maybe Caldor wasn't successful in that area?
Reminds me of this: a Food Basics opened in Dearborn Heights, Michigan in 2004, became a Farmer Jack not long after and closed permanently in July 2007.
why dont they bring back Zellers by having them reacquire Target in Canada?
Quote from: muppethammer26 on April 21, 2015, 02:49:07 PM
Quote from: danfifepsu on April 20, 2015, 09:52:13 PM
why dont they bring back Zellers by having them reacquire Target in Canada?
I wonder if Zellers would have survived longer should Zellers not been acquired by Target?
It's possible, but HBC wanted out of the discount store business. They might have been better off under private equity ownership, but there's no assurance of their long-term survival in a cutthroat retail market.
how well did you think Zellers was doing.
Walmart will open in some former Target Canada stores
http://www.nhregister.com/business/20150509/wal-mart-to-buy-13-former-target-stores-in-canada
Quote from: standa on May 10, 2015, 07:15:26 AM
Walmart will open in some former Target Canada stores
http://www.nhregister.com/business/20150509/wal-mart-to-buy-13-former-target-stores-in-canada
Canadian Tire has purchased 11 locations, Walmart 13...
And Lowe's is taking 13 retail locations plus a warehouse
http://www.theglobeandmail.com/report-on-business/lowes-canada-to-buy-13-target-locations-distribution-centre/article24367609/
http://www.cbc.ca/news/business/lowe-s-canada-acquires-13-former-target-locations-1.3069111
what went wrong with zellers?
A quick note, Target Corp just recently started shipping to Canada through an International site.
Other retailers started that some time ago! (And Target Canada should have started as an online site first...)
The only problem is that, similar to Target Canada stores, the website is lacking many items and prices are way too high!
One example, A mens C9 by Champion Polo shirt, on sale at $16.00 US, so far so good... but add to that $22.23 shipping fees and 5.33 duty fees for a grand total of 43.56$ US !!
That's almost $58.00 Canadian dollars! :o
At that rate, it's cheaper to drive to the US, stay the night and pay $16.00 US in store.
Quote from: danfifepsu on May 14, 2015, 02:43:08 PM
what went wrong with zellers?
Getting acquired by Target when they found that they'd miss their mark financially speaking...
Now most locations are being absorbed into other retailers, like Walmart, Lowe's Canada, and Canadian Tire. I highly doubt Zellers will ever come back. That ship has sailed. Zellers has gone to that big shopping mall in the sky.
Quote from: Zayre88 on October 23, 2015, 08:19:06 PM
A quick note, Target Corp just recently started shipping to Canada through an International site.
Other retailers started that some time ago! (And Target Canada should have started as an online site first...)
The only problem is that, similar to Target Canada stores, the website is lacking many items and prices are way too high!
One example, A mens C9 by Champion Polo shirt, on sale at $16.00 US, so far so good... but add to that $22.23 shipping fees and 5.33 duty fees for a grand total of 43.56$ US !!
That's almost $58.00 Canadian dollars! :o
At that rate, it's cheaper to drive to the US, stay the night and pay $16.00 US in store.
I worked in an Ames store that was about 30 miles from the border, and that's EXACTLY what people did.
They'd come over and buy an entire new wardrobe, then dress in five layers so they could
wear it all home and tell Customs they had nothing to declare. They'd come in their oldest,
rattiest attire, which they would discard in our parking lot.
At the time Michigan sales tax was 4% and between sales tax and GST they were paying
15% in Ontario. Stores were also still closed on Sunday there so we got shopped heavily by
Canadians on Sundays.
This led to an angry dispute with our bank, which did not want to be burned with the added
cost of processing Loonies. We had to threaten to yank our account to get them to back down.
There are some prime shopping mall locations that were vacated by Target Canada, like the West Edmonton Mall location, for example, which has two floors. Seems like the perfect spot for JCPenney*, Nordstrom*, Macy's*, Kohl's*, Bloomingdale's*, Belk*, or some other department store that would easily fill both floors.
*This will only work if they do decide to expand into Canada.
Former Target Canada becoming a Walmart soon....
This location used to be a Kmart, then Zellers, then Target and soon Walmart...
(http://c1.staticflickr.com/1/619/23465416341_94c040507b_c.jpg)
It'd be nice if these newly-renovated buildings maintain their new fixtures/construction, get a simple paint job, and just get the Walmart logo slapped onto them (and, possibly, use of that odd second entrance that Target builds onto their stores for absolutely no reason as an entrance to a new external Garden Center area). If necessary, build a detached Auto Center to accompany that need. However, knowing how Walmart likes to standardize their stores/buildings, they'll probably tear out the entire front and make it look like a regular WM store.
Quote from: jason83080 on January 06, 2016, 02:56:10 PM
It'd be nice if these newly-renovated buildings maintain their new fixtures/construction, get a simple paint job, and just get the Walmart logo slapped onto them (and, possibly, use of that odd second entrance that Target builds onto their stores for absolutely no reason as an entrance to a new external Garden Center area). If necessary, build a detached Auto Center to accompany that need. However, knowing how Walmart likes to standardize their stores/buildings, they'll probably tear out the entire front and make it look like a regular WM store.
Although it looks like they might do just what you suggested, based on the photo in the post above. After all, I don't think blue and that dark goldish color are left over from Target... but they do look like someone else's color scheme. And it doesn't make sense that they would start painting if they planned to do major remodeling to the front?
One more Target becoming a Walmart soon in the Montreal area:
(http://wpmedia.montrealgazette.com/2015/11/montreal-que-november-9-2015-the-former-target-store.jpeg)
This could be Walmart Canada's big chance to become a bit more "upscale" while remaining more on the low end.
Our local former Target is becoming a Super C supermarket:
(https://c2.staticflickr.com/2/1447/24675588333_0e5d2f360d_c.jpg)
Former Target converted into a Canadian Tire store:
(http://www.lavantage.qc.ca/media/photos/unis/2015/01/15/photo_2792610/article_large.jpg)
(http://www.lavantage.qc.ca/media/photos/unis/2016/03/16/photo_3048829/article_large.jpg)
Target missed their "target" in Canada...
Target left Canada...
New stores are now opening in the former Canadian Target locations.
I wonder if Quebec's Korvettes would open a few old Target stores in Quebec.
Quote from: JimSawhill on March 26, 2016, 11:23:53 PM
I wonder if Quebec's Korvettes would open a few old Target stores in Quebec.
So far none.
Korvette operates stores in small towns and underserved rual areas. Kind of like Ames used to do.
Giant Tiger will open a store in part of a former Target in Ontario. But again they are much smaller stores.
At 16,500 square feet, the new store will be considerably smaller than the roughly 100,000 square feet that Target occupied.
Here's one more former Target turned into a Walmart.
They kept the original facade and doors in place:
(http://images.lpcdn.ca/641x427/201601/29/1130182-ouvertes-jeudi-nouvelles-succursales-candiac.jpg)
Quote from: Zayre88 on March 27, 2016, 10:37:47 AM
Quote from: JimSawhill on March 26, 2016, 11:23:53 PM
I wonder if Quebec's Korvettes would open a few old Target stores in Quebec.
So far none. Korvette operates stores in small towns and underserved rual areas. Kind of like Ames used to do.
Just like how Shopko's
Shopko Hometown currently serves small town and underserved rural areas in the United States like
Pamida,
PM Place,
Fischer's Big Wheel,
Gibson's and
ALCO did at one time.
Target Australia's
Target Country stores (originally called
Fossey's) also serve a similar purpose in smaller Australian communities and underserved rural Australian communities.
Quote from: ShopKoFan on March 27, 2016, 01:32:24 PM
Quote from: Zayre88 on March 27, 2016, 10:37:47 AM
Quote from: JimSawhill on March 26, 2016, 11:23:53 PM
I wonder if Quebec's Korvettes would open a few old Target stores in Quebec.
So far none. Korvette operates stores in small towns and underserved rual areas. Kind of like Ames used to do.
Just like how Shopko's Shopko Hometown currently serves small town and underserved rural areas in the United States like Pamida, PM Place, Fischer's Big Wheel, Gibson's and ALCO did at one time.
Target Australia's Target Country stores (originally called Fossey's) also serve a similar purpose in smaller Australian communities and underserved rural Australian communities.
Fischer's Big Wheel was a great store...I wonder what went into the old FBW Stafford Springs store.
Inside a former Target Canada in Gatineau, Quebec (near Ottawa):
(http://c2.staticflickr.com/2/1486/26605838265_8dbf490565_c.jpg)
Honda Canada has reused a former Target store in its latest commercial:
http://www.youtube.com/watch?v=ueTMiq0WsbY
Quote from: Zayre88 on June 25, 2016, 08:23:20 PM
Honda Canada has reused a former Target store in its latest commercial:
http://www.youtube.com/watch?v=ueTMiq0WsbY
Nice commercial...I wonder which ex Target store they used?
Here's a former Target Canada stores turned into a Walmart Supercenter.
Store was originally a Woolco. It became a Zellers and then Target. Target closed in 2015 and location has been picked up by Walmart which closed its older and smaller store in Lévis near Highway 20.
Walmart has sealed off the original Target entrance on the left of the picture and built a new one further right and re-used Target's doors and windows. Far right, the building shape is a relic from the original Woolco store.
(http://c1.staticflickr.com/9/8736/28408320742_7ec68a38f5_z.jpg)
yes Target gave up on this way way way way too fast I Feel.
Quote from: danfifepsu on November 29, 2016, 08:44:53 AM
yes Target gave up on this way way way way too fast I Feel.
I hate to break it to you, but Target Canada did not give up. They failed. Here's proof:
Quote15 Things We Learned About The Downfall Of Target Canada
By Laura Northrup, Consumerist.com
@lnorthrup
January 22, 2016
Why did Target’s expansion into Canada fail so quickly? The company is based in Minnesota, which is dangerously close to being Canada. Yet Target Canada failed spectacularly. Why? Sure, they expanded too quickly, and had supply chain problems: we all know the answer. Yet what did that look like on the ground?
Employees on both sides of the border must have worked very hard to make the launch happen, and it resulted in a terrible experience for shoppers. Canadian Business interviewed employees who were there when Target Canada launched and when it failed. For all of the scary details, head over to their site to read the whole story.
Note that Target wouldn’t confirm any of what the ex-employees say, and most of them asked for anonymity because they want to keep working in the industry.
Here’s what we learned from the article: and we thought that we already knew a lot about Target Canada, eh.
1. Target wasn’t ready. The point of sale systems weren’t working and the company struggled to get inventory into stores, yet they went ahead and opened the first test stores anyway.
2. When an employee asked Greg Steinhafel, then CEO of Target, what he would change about how Target Canada had launched if he could, Steinhafel said that he would not have bought Canadian discount chain Zellers. The transaction began when Walmart approached the owner of Zellers about a sale, and knowing that their competitor was involved made Target bid more ($1.8 billion) to open 133 stores on a much faster timeline than was actually possible.
3. Target couldn’t just box up its behind-the-scenes software and send it to Canada, since it was built specifically for the use of Target in the United States, and couldn’t handle French characters or Canadian dollars. They bought a new system from an outside vendor, which usually took stores that were already operating several years to implement. Getting the system to work while also creating Target Canada was a disaster.
4. In the U.S., Target hires corporate employees who have the right personality right out of school and trains them. In Canada, they did the same, but the bright and friendly young employees they hired received very little training compared to their American counterparts.
5. There was intense time pressure, but employees didn’t realize how crucial it was that the software running the supply chain had to be correct. “You had these people we hired, straight out of school, pressured to do this insane amount of data entry, and nobody told them it had to be right,†one former employee explained. Inaccurate information delayed shipments and caused other logistics disasters.
6. The fall before the launch, the merchandising team realized that there was so much inaccurate data in the system that they would have to take a week and do nothing but verify with suppliers every piece of information (size, weight, everything else you can imagine) about every item that the stores planned to carry. It was a miserable week. Target sent ice cream and pizza to comfort the workers.
7. Target’s employees in suburban Toronto couldn’t type the information into the system themselves: there was another set of workers in India who did that, which was another way errors could creep in. Interviewees disagree about whether their work was error-riddled or not.
8. The good news: the first stores in Ontario had more customers than expected. Unfortunately, that meant that customers encountered empty shelves.
9. Warehouse and supply chain software weren’t communicating, which led to empty store shelves and overstuffed distribution centers. The company forecast demand for different items based on information from U.S. stores, not a new chain launching in a new country.
10. The point-of sale (cash register) systems were buggy and sometimes froze. Self-checkout stations sometimes gave out the wrong change.
11. No matter how badly the launch went, Target Canada had to keep going and keep opening new stores, because the company had paid so much for the former Zellers leases.
12. Target Canada president Tony Fisher left the company in May 2015, two weeks after CEO Gregg Steinhafel stepped down.
13. One week, stores were sold out of every item pictured on the front of its sales flyer. We can’t even add any snarky remarks to that.
14. Employees were expecting some store closings and layoffs, and were shocked when headquarters in Minneapolis announced that Target Canada would file for bankruptcy and close all of its stores.
15. Canadians can shop at Target again… sort of. The company partnered with Borderfree, which handles the logistical issues of international e-commerce. One of the countries they’ll ship to is Canada.
2 years was too quick to fail
Quote from: danfifepsu on November 30, 2016, 08:27:17 AM
2 years was too quick to fail
They weren't prepared for the Canadian market.
Quote from: ShopKoFan on December 20, 2016, 05:20:43 PM
Quote from: danfifepsu on November 30, 2016, 08:27:17 AM
2 years was too quick to fail
They weren't prepared for the Canadian market.
what cant they do now? what were their stores like?
Quote from: danfifepsu on December 20, 2016, 10:21:49 PM
Quote from: ShopKoFan on December 20, 2016, 05:20:43 PM
Quote from: danfifepsu on November 30, 2016, 08:27:17 AM
2 years was too quick to fail
They weren't prepared for the Canadian market.
what cant they do now? what were their stores like?
They had the same layout and logo as the American Target stores. Some small locations found in some former Kmart/Zellers locations had a layout condensed to a smaller space. Stores were understocked (empty shelves in random parts of the store). Another thing that was a challenge for Target Canada was translating everything to French-Canadian for the French-speaking parts of Canada.
Quote from: ShopKoFan on December 21, 2016, 05:07:10 AM
Quote from: danfifepsu on December 20, 2016, 10:21:49 PM
Quote from: ShopKoFan on December 20, 2016, 05:20:43 PM
Quote from: danfifepsu on November 30, 2016, 08:27:17 AM
2 years was too quick to fail
They weren't prepared for the Canadian market.
what cant they do now? what were their stores like?
They had the same layout and logo as the American Target stores. Some small locations found in some former Kmart/Zellers locations had a layout condensed to a smaller space. Stores were understocked (empty shelves in random parts of the store). Another thing that was a challenge for Target Canada was translating everything to French-Canadian for the French-speaking parts of Canada.
I nevr got a chance to go to them due to that short 2 year run.
Everyone should read this article:
http://www.canadianbusiness.com/the-last-days-of-target-canada/
Very interesting and revealing story on the last days of Target Canada and how it all happened...
Many people I know still miss Target Canada...
Quote from: Zayre88 on December 21, 2016, 06:06:19 PM
Everyone should read this article:
http://www.canadianbusiness.com/the-last-days-of-target-canada/
Very interesting and revealing story on the last days of Target Canada and how it all happened...
Many people I know still miss Target Canada...
I just got done reading it (this is the second time I've read up on this)...just...wow. That's all I can say.
If Target didn't have challenges in the US they probably would have stuck it out for a bit longer. But it's an enormous drain on resources to fight a two-front war. Even successful businesses sometimes have to make tough choices - Shaw's was going well for J. Sainsbury, but problems on the home front promoted them to sell to Albertsons - and we all know how that turned out for Shaw's...
Wow indeed....
I had a Target Canada store in my home town and I was able to notice that there were problems (like empty shelves)
But the magnitude of the issues is just unbelievable!
Quote from: busman_49 on December 22, 2016, 08:23:39 AM
I just got done reading it (this is the second time I've read up on this)...just...wow. That's all I can say.
Here's the former two-level Target store at the West Edmonton Mall:
(https://c1.staticflickr.com/5/4447/37345434270_fb68b749f3_c.jpg)
You can see more new pictures of former Target Canada stores on my Flickr page:
https://www.flickr.com/photos/24587536@N08/
Is something going in there? I see a dumpster in that picture.
Quote from: Brammy on October 09, 2017, 07:53:19 PM
Is something going in there? I see a dumpster in that picture.
Upper floor was occupied by a temporary Halloween store.
Lower floor was under renovations/construction but I don't know what's going in there.