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It failed in Canada not because of so-called "cultural differences" but because of major supply chain issues and excessive pricing. Canadians who shopped at American Targets were dismayed that the pricing was inflated north of the border and felt shafted that they weren't receiving the American "Target experience". Those who tried Target found a store with empty shelves and lacking any kind of competitive pricing wasn't worth a second visit. Why would I stop visiting the stores I currently shop at to switch to the new guy who neither offered me a deal nor ever seemed to have any products in stock?
I like Target in the U.S., but their efforts up here were utterly abysmal.
It failed in Canada not because of so-called "cultural differences" but because of major supply chain issues and excessive pricing. Canadians who shopped at American Targets were dismayed that the pricing was inflated north of the border and felt shafted that they weren't receiving the American "Target experience". Those who tried Target found a store with empty shelves and lacking any kind of competitive pricing wasn't worth a second visit. Why would I stop visiting the stores I currently shop at to switch to the new guy who neither offered me a deal nor ever seemed to have any products in stock?
I like Target in the U.S., but their efforts up here were utterly abysmal.
I have heard many comments from Manitobans I know about the issues with availability of products and prices. They come to shop here and expect similar items and prices and it wasnt anywhere close.
and the thing is, why did Target expand into Canada in the first place? Sheer greed.
The USA is vastly over-stuffed with retail stores, and there's no reason to think Canada is different in that regard. Expand, expand, expand! Now the workers will be suffering for the CEO's money-mongering, as usual.
The problem is taxes are too high in Canada that why there is lack of stores and retail stores in Canada. Lower taxes and you see more Target stores ,K-mart stores and super stores like in the US.
I'm not a fan of Target. I used to shop there, but it's basically just a more expensive Walmart. Canada is not simply America's northerly neighbor; it's an entirely different culture, and it appears Target's powers that be failed to recognize that. Major FAIL, Target.
What culture differences? Canadians eat and dress different or different entertainment buying?
The problem is taxes are too high in Canada that why there is lack of stores and retail stores in Canada. Lower taxes and you see more Target stores ,K-mart stores and super stores like in the US.
Not necessarily! You have to take into account that there are Canadian retailers that exist in Canada that don't exist in the U.S and they are also competing with the likes of the Walmarts and Home Depots and Dollar Tree's (soon to be Ex Target's) up here etc.. This competition from Canadian retailers helps to lower prices more than some give credit for.. I'd say 75-80 percent of goods I buy are from Canadian Retailers and the majority of the time they are as cheap if not cheaper than U.S retailers up here- particularly for groceries.
One thing is for sure - Canada won't miss Target and that retailer certainly missed the Target when it comes to the Canadian Retail landscape where many many Canadian Retailers who are much smaller companies flourish.
What culture differences? Canadians eat and dress different or different entertainment buying?
If memory serves....(its been a few years) Canadians seem politically better informed and less enamored by "Corp America". Bigger is not always better and the sense of community seemed stronger in the small sample I have that included both Montreal and Toronto, a favorite city. I think Target is a buy on dips....dontcha know!
The problem is taxes are too high in Canada that why there is lack of stores and retail stores in Canada. Lower taxes and you see more Target stores ,K-mart stores and super stores like in the US.
I doubt that is the issue. Their taxes are higher if you make more than $80K, but they don't have to shell out $14K/yr for insurance, so the tax angle is practically moot. Housing otoh is 62% higher, but they only make 36% more than Americans do. This is all assuming that Canadians would want similar retailers and they very well may not.
Taxes in Canada are a combination of Federal and Provincial levies.
Consider this for a moment....The total population of Canada is 34 million people, while the population of your country is over 330 million. So, in simple terms we are 90 percent smaller, in population numbers than your country is. Obviously, the retail sector here is much smaller than in your country.
Second consideration.....At both the Federal and the Provincial levels, the number one item on the annual budget is public education. The number two item is health care, which as you know is universal, meaning that EVERYONE in covered regardless of their income, age or past medical condition.
As a result, Canada has the most educated population in the world, with about 50 percent of our adult population holding at least one 4 year University degree.
Sure we pay taxes, but look at what we get for them. And the reality, in Canada, is that we are generally satisfied with how our country is run. Our national motto is..Peace, Order, and Good Government.
Target Canada will pay 70 Million dollars, to their Canadian employees, which will be equal to 16 weeks of wages, plus the employees will be eligible to apply for Employment Insurance, from the Canadian Federal Government, if they have worked the required number of hours in the past six months. EI in Canada pays up to 60 percent of the worker's gross weekly salary, to a weekly maximum of $560. Target employees were being paid from $11 to $14 an hour, depending on which Province they live in. 16 weeks at 11 an hour, works out to a severance off about $4800, to the average Target Canada employee less their normal tax and Canada Pension deductions. At that rate of pay, the individual's tax rate is about 22 percent of their gross wage.
The EI program is a national program that covers ALL Canadian workers. It has provisions that allow for a person to move to another part of Canada, to find work. The costs of moving are considered to be a income tax deduction, as are retraining programs, that the EI system provides. We want our citizens and new Immigrants to be as well educated and skilled, as possible.
The Target Canada funds are held in a trust account, that is managed by a independent third party law firm.
When I said that Canada IS a separate and different country, from the USA, this is what I meant. We try very hard to make things as good as we can, for our citizens.
As for the idea that education is "wasted on minorities "? I bet that the person who
wrote that would have a very DIFFERENT point of view if he was WAS a Minority !!
The level of ignorance from some Americans amazes me. Thankfully , I know that he doesn't represent any significant percentage of your population. Does he ?
The REAL reason that Target in Canada was such a disaster.......
They assumed that taking over a tired, old, and poorly run chain ( Zellers ) was the cheap and fast way to get into the " Canadian market ". They hired most of the previous Zeller's employees, but brought in US managers. That was a big mistake. The problem was made worse by a seriously screwed up supply chain , that couldn't manage to keep the shelves stocked, or react to the price challenges that the other Canadian retailers presented.
A couple of kilometres from my house here in Toronto, Target built a huge new free standing store. A wonderful, clean, bright, and EMPTY store. Customers stayed away in droves, as the saying goes. Imagine a new store, where half of the shelves are empty, week after week ?
Here is where they goofed. Prices in the Canadian Target stores were NOT competitive with the Canadian Walmart, or Home Depot, or other retail chains. Canadians who had been down to the US, and had shopped at US Target stores, were completely dismayed by the prices at the Canadian Target stores. NOT competitive at all, when compared to OTHER Canadian based stores. Not even close.
A further problem was the US managers, who couldn't get it through their heads that Canada IS a different country, with our own laws and rules about how people are to be treated as employees. A simple thing like bringing job application forms , from the USA, that ask for personal information that is illegal to ask for here in Canada.
It's going to be a huge loss, and the store fixtures and inventory will eventually be sold at auction. Anybody want to buy a lot of red paint ?
Jim B. In Toronto.
Thanks Jim B for the direct info.
It always nice to get some info from someone who can see things first hand
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