Case Study On Target

Decent Essays
Target remains as one of the leading retailers in the United States. With a great selection of merchandise for a low cost, it is a consumer’s heaven. After receiving so much success within the U.S., Target retailers decided to expand internationally, making its way to Canada. With long term plans to stay in Canada, Target ended up pulling out of Canada within 2 years. Leaving more than 17,000 people unemployed and a loss of approximately 2.5 billion dollars, Target felt this was there only way to evacuate from the Canadian market. Target did not live up to its standards as most Canadians believe. The customer experience was not the same as one would receive at a Target location south of the border. Introduction: Before entering Canada, Target…show more content…
Walmart being one of the largest retail chains within Canada faced Target with a challenge. With Target’s arrival, other retail chains began to improve on their store operations and offer better prices as well as merchandise. Target’s CEO at the time Tony Fisher did not know what he was going against, “Rather than buying the leases, emptying the stores, laying off all of the talent, and investing in reconstruction, Target could have purchased Zellers’ outright, taken advantage of its expertise, supplier relationships, ongoing operations, and significantly, functioning inventory control system, then made adjustments as it learned the market slowly but surely convert the Zellers stores to the Target nameplate, learning from the successful lessons of Walmart’s successful entry into Canada at Woolco stores.” (“5 Reasons Target Failed In Canada,” n.d) Target soon realized they would not make any profit until 2021, "So rather than continue to lose money, which I suspect they were doing, they decided to cut their losses and retreat.” (“Target misread its Canadian shoppers and retail market: business expert,” n.d) Canadians were expecting reasonable prices but with competition Target failed to give in to this idea “Analysts say the store’s prices aren’t competitive with the likes of Canadian operations of Walmart and Costco, and that merchandise is consistently out of stock.” (“Why Was Target
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