Monday, 21 July 2014

3 ways Target missed the mark in Canada

Otmane El Rhazi from CBC | Business News .

Target Canada 20140124

The impending Canadian launch of fabled American retailers Nordstrom and Saks Fifth Avenue is eagerly anticipated by consumers, but the disastrous rollout of Target stores might make executives pause.

It’s no secret that Target stores in Canada have struggled out of the gate. The Minnesota-based retailer posted a $1-billion loss in Canada last year. Customer satisfaction is abysmal, despite efforts to improve product availability and pricing.
Just this week, a retail analyst at Credit Suisse recommended executives shutter the Canadian operations entirely only 18 months after the stores opened. The company has balked at such a move and is reaffirming its commitment to the Canadian market, at least for now.

But Target is not the only American retailer to flounder.
In the wake of the 2008 recession, many American retailers turned their sights north, a market that was spared the worst of the economic downturn.

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