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Old 01-15-2015, 11:50 AM
 
14,995 posts, read 8,556,881 times
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My favorite store chain in the U.S.

Target to shutter all stores in Canada

Quote:
Target is pulling out of Canada after two disastrous years.

The U.S. retail icon said Thursday that it plans to abandon its 133 stores in Canada, which have suffered from poor supply chain management and a misguided pricing strategy. The operation has lost more than $2 billion since the expansion was announced in 2011.
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Old 01-15-2015, 12:02 PM
 
Location: Altadena, CA
1,519 posts, read 1,418,475 times
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Quote:
Originally Posted by Suburban_Guy View Post
My favorite store chain in the U.S.

Target to shutter all stores in Canada
Cripes, talk about poor planning and a complete waste of billions of dollars! They may have to close some American stores to make up for this snafu. Someone in the CEOs office needs to get fired!
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Old 01-15-2015, 12:05 PM
 
Location: southern kansas
7,599 posts, read 5,111,496 times
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Quote:
Originally Posted by MItoBH View Post
Cripes, talk about poor planning and a complete waste of billions of dollars! They may have to close some American stores to make up for this snafu. Someone in the CEOs office needs to get fired!
More than likely he/she will get a seven figure severance package.
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Old 01-15-2015, 12:13 PM
 
38,193 posts, read 15,329,979 times
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Sounds like a good thing for Canada. Those stores are full of communist produced low quality junk that usually ends up in the landfills.
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Old 01-15-2015, 01:43 PM
 
Location: Great State of Texas
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Target never really recovered from the big CC/debit card hack.
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Old 01-15-2015, 01:50 PM
 
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They would probably have to close a lot of their stores in the US if they couldn't sell groceries. The culture for grocery shopping may not be the same in Canada. We seem to have a lot of people in the US who are willing to drive out of their way for food.
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Old 01-15-2015, 02:35 PM
 
Location: Toronto, Ontario, Canada.
2,540 posts, read 3,062,144 times
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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.
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Old 01-15-2015, 02:59 PM
 
Location: southern kansas
7,599 posts, read 5,111,496 times
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Quote:
Originally Posted by canadian citizen View Post
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.
In the end, it always comes down to management, or the lack thereof. They are the ones calling the shots, and success or failure is their responsibility. That's why they make the big $$$, whether they earn it or not.
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Old 01-15-2015, 03:58 PM
 
105 posts, read 147,049 times
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They fired the CEO six months ago. The new guy pulled the plug on the Canadian expansion.

I do think that Target has room to grow in the US but one of their major problems is that they outsource the vast majority of their logistics & supply chain. Wal-Mart does 99% of theirs in-house and it shows. The difference in efficiency is like night and day. This might translate to a few cents on a case of toilet paper but multiply that by how much toilet paper (and other items) Wal-Mart moves through its' 8,000 stores in a given week. HUGE savings.
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Old 01-15-2015, 04:05 PM
 
Location: between three Great Lakes.
1,632 posts, read 1,786,624 times
Reputation: 5389
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.
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