An unenthusiastic response to Target’s expansion into Canada resulted in upsettingly low success

Target Canada is the company’s first international expansion. However, Target’s expansion was not successful, as the company had initially planned for. Therefore, the company will be closing 133 Target Canada stores across the country and lay off approximately 17,600 employees. According to Target’s CEO Brian Cornell, he stated “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.” Moreover, problems occurred immediately when Target opened up over hundred stores in the first year of its Canadian Expansion. For example, customers complained about the lack of basic goods, prices being too high, and the unavailability of U.S. brands in the stores. It was the start of Target accumulating losses as high as a billion dollars a year. In addition, there was also increasing competition with Wal-Mart being the biggest retailer in Canada. The already intimidating rival lowered its prices in order to fend off Target. Furthermore, Target Corporation’s cash costs to discontinue Canadian operations are expected to be $500 million to $600 million, most of which will occur in the Company’s 2015 fiscal year or later. The Company has sufficient resources to fund these expected costs, including cash on hand and ongoing cash generation by

Wal-Mart’s is one of Target’s biggest competitors, but other retailers are also trying to compete, such as Sears, Dollar General, and Amazon. Although Target caters more to a more upscale clientele, it still carriers many of the same items as Wal-Mart. Target is not able to compete internationally with Wal-Mart since all of stores are in the U.S. but by 2014, they will have about 150 stores

Target Canada gets to be favoured shopping goal from retail chain roots. First and foremost Target store was secured in 1962. Target Store is focused on its legacy of dependable corporate citizenship, moral business hones, natural stewardship and liberal group help.

Company Profile Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota. Target Corporation operates general merchandise and food discount stores in the United States. It operates as two reportable segments: Retail and Credit Card. The company offers household essentials, including electronics, music, and toys; apparel and accessories; home furnishings as well as seasonal merchandise. It also sells its merchandise under private-label brands, such as Archer Farms, etc. Target Corporation operates in-store amenities, such as Target Caféand Target Clinic as well. Its marketing strategy includes selling its products on its online shopping site Target.com and its network of

Target is the second biggest retail company after Walmart. Native New Yorker, George Draper Dayton first built a company named Dayton Dry Goods Company in 1902 in the Minneapolis area which is now known as target headquarter. Walmart faced the out of stock issue problem last year and now their biggest competitor, Target, also has faced the same problem this year. Target has a problem keeping the availability of the product in their stores in Canada. It resulted in a huge loss of money and closing down their stores. The CEO of Target said that this is a serious problem and must been solved.

Headquartered in Minneapolis Minnesota, Target Corporation is one of the largest chains of retail stores in United States and Canada (Stone, 1995). Founded in 1902, the chain now has more than 360,000 employees worldwide. The company operates nearly 1925 stores out of which 1795 stores are in the US and 130 stores are in Canada (NASDAQ, 2014). The business prides itself in a diverse portfolio of merchandise that their outlets houses, ranging from dry groceries to electronics, furniture, apparel and much more. Its distribution networks make use of third party vendors, direct shipping as well as distribution centers. It also operates a successful e-store target.com which offers customers a virtual one-stop shop for their needs.

The Target Corporation is a general merchandise retailer that opened up in in 1962 under the parent company of Dayton Corporation. This parent company was renamed the Target Corporation in 2000 and are based out of Minneapolis. There are over 1,800 Target stores throughout the United States which includes Targets and Super Targets. In 2005 Target began expansion in India and in 2011 to Canada however this expansion into Canada did not fare well and all Target Canada stores were closed by 2015. According to Forbes in 2005 they we ranked amongst the highest cash-giving companies in America with 2.1% given and they donate about 5% of its pre-tax operating profit. In 2010 Target was ranked number 22 by Fortune magazine’s World's Most Admired Companies.

Target Corporation is a retail chain specializing in household goods, clothing, food, and accessories at discounted prices. The retail chain’s history started back in 1902 as Goodfellows and in 1910 as The Dayton Company. Initially, the chain specialized in “furnishings, fabrics and decorations for business and other public institutions” (“Target Corporation,” 2016, p. 5). Eventually, Target went public in 1967 and on to acquire Mervyn’s in the 1970s where they became the seventh largest retailer in the United States. Target operates in the United States, where it is headquartered in Minneapolis, Minnesota and as of January 31, 2015 Target employs over 300,000 people. “The company recorded revenues of $72,618 million in the financial year ended January 2015, the operating profit of the company was $4,535 million, [and] the net profit was $2,449 million” (“Target

Thus, Target operations thought that opening over 100 stores all over Canada would be a great opportunity for the company to expand its profitability. However, the exact opposite happened. Instead of reaching their profitability goal, there is an estimated loss between $800-$900 million, since the opening of stores in Canada (Austin, 2014). The cause of this failure was due to a lack of inventory in most stores; leading to empty shelves and many of the favorable brands from U.S. Target’s did not make it to the stores in Canada. Another problem was that prices were higher in Canadian stores compared to U.S. store prices due to shipping costs and tax (Austin, 2014). Target failed to think this whole process through before acting on it. Starting with the 124 stores who all had to be remodeled and up and running in less than a year due to Canada’s policy of not letting any store stay vacant for any longer than that; to having the ability to furnish and fill the stores with all of their merchandise (Nolan, 2014). Soon they came to realize they could not. Target’s lack of looking into the higher prices they would have been paying making it able to get the merchandise over the border into Canada, was another issue leading to the company’s ineffective plans. Having noticed early on that the extra costs of tax will lead to a price mark up on in store products,

With its headquarters in Minneapolis, Minnesota, Target is a continuously striving company focused on improving every aspect of their business – whether it's their merchandising for guests, technology solutions, or even the future design of the company. The first Target store was founded and created in 1932 in Roseville, Minnesota by George Dayton. Originally created to be a discounted merchandising company, Target surpassed all doubters expectations when it began to offer common stock, and 1969, merging with J.L. Hudson and for the first time, Target revenues topped $1 billion dollars. Today Target is

Above all, as an extension of Target’s in-store differentiation strategy, the company needs to implement strong customer service features on all its digital platforms as well. This will include friendly, well-English speaking customer service reps available 24/7 customers can talk to about questions or technical problems with little or no waiting time.

Target stores carry clothing, shoes, jewelry, health and beauty products, electronics, compact discs, DVDs, bedding, kitchen supplies, sporting goods, toys, pet supplies, automotive supplies, hardware supplies, and food. They also carry seasonal merchandise such as patio furniture during the summer and Christmas decorations during November and December. Many stores may also have one-hour photo processing, a portrait studio, an optical store, a pharmacy, and a garden center. Stores opened or re-modeled in 2004 or later also include the expanded snack bar that is featured in Target Greatland locations. These generally include a Starbucks Coffee shop, a Pizza Hut Express, and a Taco Bell Express in addition to Target's Food Avenue. It has also been reported that Cold Stone Creamery and Target have signed a deal to test in-store ice cream shops in four stores. The first few Target stores included leased supermarkets in addition to general merchandise, which during the time was a common practice by discount retailers as they attempted to offer a one-stop shopping experience to customers. Douglas Dayton stated in 1967 that "we believe that the discount-grocery store is a necessary ingredient in what we offer the customer. After all, food sales are about 40% of all department store-type merchandise sales, so the two kinds of stores go hand-in-hand and are

Target did go bankrupt after people bought the store. Newspaper show price as having declined. Target Canada online still forced people to buy from them. Canada is focused on rebate and does now offer refunds for high prices. Find new Growth is still small.

According to the Management Discussion & Analysis in Target’s 10-K form for 2015, the cause of this net loss was Target’s decision to discontinue its operations in Canada. Due to this decision, Target lost $4,085 million from discontinued operations, which brought the net loss to $1,636 million and caused negative profit and gross margins. Target is accurate in attributing its net loss to discontinuing its Canadian operations, because the other data in the income statement, such as total revenues, cost of goods sold, gross profit, and net income from continuing operations, are consistent with previous years. Also, Target’s decision to exit Canada may have contributed to the company’s high net income, profit margin and gross margin in the following fiscal year ended January 30, 2016

In the article, Billion-dollar mistake: How inferior IT killed Target Canada, the Target Corporation entered into an international market without modifying its IT system and it lost billions. IT is what drives Target’s entire enterprise. So, Target’s IT system needed a lot more development and customization before the corporation expanded into Canada.