An unenthusiastic response to Target’s expansion into Canada resulted in upsettingly low success rates this year. The recent implementation of 127 stores nation-wide has cost the corporation nearly $1 billion in retail sales. Although the future of Target Canada appears to be gloomy, it is with hope that providing the public with adequate knowledge of the corporation and their plans for the future, they will be encouraged to support this potentially booming discount retailer.
On Tuesday, March 5th, 2013, Target was set to open its first Canadian stores, located in Guelph, Fergus, and Milton, Ontario. Excitement buzzed over the large retailers arrival, and many were anxiously awaiting their grand openings. U.S. brands such as Sonia Kashuk Cosmetics, Nate Berkus’ decor line, and Peter Pilotto’s affordable line of bathing suits, were featured in Target’s inventory. The Ontario expansion was set to continue throughout March and April, and than later move its way into the west. Executives hoped to open 125-135 stores in 2013, and continue to add more in the upcoming year. In need of location space, Target Corp. bought out Zellers sites for $1.82 billion, resulting in 220 of their stores set to replace old Zellers venues. “Zellers has been trying to get its house in order,” said Ken Wong, professor at Queen’s University School of Business. “They just had a number of large disadvantages. When competing with Walmart and Costco on the one side and Shoppers Drug Mart on the other it seems like everyone is taking a little piece from every side.” With Zellers making the financial decision to admit defeat, this left many in need of jobs. Sharon Singleton from the Toronto Sun writes: “The expansion will create thousands of jobs in Canada, i...
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...ration of acceptance and the confidence that they have for their future recovery. Although Target Canada has struggled throughout 2013, it would seem as though they are taking action and working hard to actively improve their company as a whole. Merchandising chief Kathee Tesija discusses the companies recovery. “Historically we’ve intended to work on our newness until we felt we got it to a most complete level, and then we would put it into pilot. Now we want to get it in front of our guests very quickly, get their reaction to it so that we’re fine-tuning it much more quickly and then able to move to roll out at a much faster pace.” To the average consumer it may seem as though Target has failed. But that simply isn’t the mind frame of a good Canadian. Isn’t it our motto to cheer for the underdog? The decision is up to you. Is Target a failure or future success?
Target’s first foreign store investment was in Canada; American stores look to Canada as their first foreign investment because the differences between the two countries are relatively minor. Other stores that have expanded to Canada include Wal-Mart, and Sears, each of these companies proved to be prosperous in Canada. Canada is one of the wealthiest countries in the world and is dominated by the service industry, Wawa would have no trouble fitting into the culture Canada has and dominating the market as they do here, in the United States. After reading about Canada and Wawa, we have realized this move could only benefit Wawa and help their reputation and build their company.
According to Kantar Retail, most of Target’s shoppers are younger on average than its rivals, and more educated. That means it has to consistently offer something different and appealing; it emphasizes more on the latest-trend apparel, eye-catching home décor and exclusive designer merchandise than its competitors. This results in a willingness to pay a bit more for items by customers who are willing to pay a bit more. Moreover, this successful
A positive to expanding to Canada is that Canadian shoppers are similar to American shoppers, ideally making this a good target market for growth (Fiorletta, 2015). In an interview regarding expansion in Canada, CO-CEO Walter Rob said, “Our efforts in Canada are part of the effort to grow.” “We think the opportunity for fresh, healthy foods is larger now that it’s ever been”. “And we intend to grow as fast as we have ever grown — 40 new stores next year, 42-44 for the following year.” “That’s 10% square footage growth on top of 15 million square feet of retail we already have.” “People have said maybe we should stop our growth.” “I said, no, we are not going to do that because our strategy is working.” “There’s no reason to stop.” “There’s every reason to keep going.” (Vieira,
Quebec is the largest Canadian province, with the second largest population and economy after that of Ontario. Historically, the province of Quebec presents a unique frontier for the analysis of Anglo-French relations. It is important to note that Canadian domain as a whole was principally an extension of France until the British forces led by Jeremy Amherst took hold o Montreal in 1760. The 1763 signing of the Treaty o Paris essentially sealed this acquisition of Canada by the Great Britain. The present federal structure of Canada came into being in 1867; a structure that created the office of the Prime Minister and promised considerable autonomy to the provinces. However, the relations of the French-speaking province of Quebec
Target, a high-end discount department store, hoped to continue expanding and adding to the company’s 1,752 stores, by purchasing 200 Zellers stores, located in Canada. One of Target’s, longtime goals was to expand into Canada , and after a decade, the company took a jump across the border (Shaw, 2011). Because many thousand Canadians hold a Red Card, Target’s reward card, Target assumed this would be a successful expansion, increasing the amount of US brands that encompass Canada’s market. Target spent a year converting the Zeller stores, altering and renovating them to transform them into Target Canada, a subsidiary of Target (Shaw, 2011). They opened 124 stores in locations all over Canada, hiring back only one percent of the former Zellers employees, desiring to make a fresh start for the department store chain (Target Refused Zellers Workers).
Target, the nation's #2 discount chain, now operates more than 1,500 Target and Super Target stores in 47 states, as well as an online business called Target.com. Target and its larger grocery-carrying stores, Super Target, have carved out a niche by offering more upscale, fashion-forward merchandise than rivals Wal-Mart and Kmart. After years of struggling to turn around its Marshall Fields and Mervyns departments stores divisions, the discounter sold them both in 2004. Target also owns apparel supplier The Associated Merchandising Corp. and issues Target Visa and its proprietary Target Card (www.Answers.com/topic/target-corporation).
Target Corporation: Report on Long-term Financing Policy and Capital Structure with an Acquisition Analysis Introduction This report will be based on the Target Corporation, and will consist of two sections: 1) long-term financing policy and capital structure, and 2) an acquisition analysis. The first section will include: Target's most recent long-term financing decision; an analysis of the economic, business, and competitive background in which the financing occurred; Target's book value and market value; possible changes that would occur to Target's finance policy and capital structure if it was forced to consider re-organization and bankruptcy strategies; and finally discuss Target's international investment and financing opportunities, as well as foreign exchange risks. The second section will be a report to the board of directors that identifies a synergistic acquisition candidate for Target.
In order for Target to have been successful, first and foremost, the retailer should have known that they would not be able to beat their competitor, Walmart, in a price war. That alone, is a losing battle. So, a higher quality of products, fewer locations, and a better understanding of Canadian tastes could have propelled the retailer into establishing, for the long term, a profitable global presence with our Canadian neighbors.
Owing to the fact that HBC is a parent company, which owns and operates Zellers, Home Outfitters, Lord & Taylor, Designer Depot and Sportarena, it has been challenging in order to manage all to be profitable. In 2013, Baker added one more company to its list, that HBC bought an American fashion apparel retailer Saks Fifth Avenue(Saks), and it is successfully opened in Toronto in 2016. Moreover, it is noticeable that HBC’s new CEO and management team seeks for a growth. According to company’s official goal, which is more commonly known as a mission statement, it states, “HBC targets $1.5 billion in incremental sales and revenue” (“About HBC”), that one of HBC’s main values is Growth-oriented. “We have a 900,000-square-foot store in downtown Toronto,” Baker told the Financial Post after buying HBC in 2008 from American investor Jerry Zucker. “It’s not productive. Instead of having anemic sales in this building that’s too big, why not do something truly exciting?” (Shaw, Financial Post). Additionally, and luckily, Torontonians want Toronto to be more modernized, wherein 2016 John Tory a Mayor of City of Toronto has announced details of a plan to modernize Toronto, (Draaisma, "Tory announces the plan to improve service, save money"). Thus, HBC’s decision of buying and bringing Saks Fifth Avenue to Toronto, a modernized mall with an elegant atmosphere was a rewarding decision and
1. The Discount Department Store. Target prefers to be called as the latter instead of just department store. Expect more, pay less. With this tagline, the customers expect to purchase more items and pay the least amount possible. Not like other retail industries like its competitor Kmart and Wal-Mart, Target maintains retail value in terms of product offerings. They are known in their designer’s items in clothes, exclusive beauty products, categorized and functional goods, and seasonal offerings. It also sells the greatest number of gift cards among its rival business.
Target Corporation is the biggest discount retailing business in the US which comes just after Wal-Mart Stores Inc. The headquarters are located in Minneapolis in Minnesota in the USA. George Dayton founded it. It initially started as a family business with a regional retailer shop and later grew into a national full retailer store. The company’s main aim is to offer retail services at friendly rates and, its main attracting feature is discount rates offed on different products in the business. The company has indicated tremendous growth in the retail business. It has a target to outgrow its market and achieve competitive advantage over its competitors. This essay seeks to discuss the competitive analysis and
The Target Corporation formerly known as “The Dayton Dry Goods Company” is a major retailing company that was founded in 1902 in Minneapolis, Minnesota by George Draper Dayton. It is ranked the second largest discount retailer in the United States and ranked thirty- sixth on the Fortune 500 as of 2013. The Target Corporation has been serving this nation with the best price possible goods since their expansion from “Dayton” and is continuously winning the hearts of consumers with their dedication and service. A phenomenal merchandising strategy and cross channeling has enabled this upscale discounter to serve their purpose of customer loyalty and fulfill their promise of “Expect more and Pay less”.
Target has not changed its business model to adapt to the modern-day changes in the retail business. Compared to its rivals, Walmart is planning to open more than 200 small stores as compared to just eight small stores within a year.
Target Corporation being a retail industry, the structure by product grouped to a functional level practices works the best. This is necessary for the other functional levels to collaborate as a single team to produce a positive customer shopping experience. Target Corporation further divided the functional level into a geographic area to exercise management tasks effectively with the given authority. Each structure of the management at the geographic level has a strategy discussion, a line of communication, growth, and progress reporting according to the corporate reporting plan. Jana Potts who manages Target Corporation store has closer to 300, 000 employees working for her and the effective can be improved if the role is broken within domestic into channels, stores into broader segments and a separate global position. The rapidly growing online channel and global expansion are necessary to support Target Corporation's strategy of internal growth and sustain it for long term sustainability. These structural changes will allow Target Corporation to connect with its employee at a functional level and bring changes faster, track and monitor the
Opportunities: Target has an opportunity to leverage its strength to overcome some of its weakness.