Skeezix
Senior Member
Frankie, that was a really interesting article. A different take from all the other "Here are the things Target did wrong" articles we've seen in the last two days. Thanks for posting.
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- Thread starter samsonyuen
- Start date
Frankie, that was a really interesting article. A different take from all the other "Here are the things Target did wrong" articles we've seen in the last two days. Thanks for posting.
Skeezix
Senior Member
Would love to be a fly on the wall during that meeting.
I know someone who works at Target Canada head office; her experience is very similar to what's in this article.
Bruno Republic
Active Member
Interesting, and unfortunately, not all that surprising. I've seen first-hand how if management refuses to acknowledge the realities on the ground and insists in sticking to the rule book regardless of the consequences, catastrophe is inevitable.
Transportfan
Senior Member
You can hardly expect US prices here. I'm sure even Walmarts here had prices higher than it's US stores. All stores do. You're right about the less-selection bit though.
Tuscani01
Senior Member
I'm really hoping they go after the location at Harbour/York! I'd love to work on that project.
LNahid2000
Senior Member
I really hope the Harbour/York space doesn't end up becoming a Canadian tire. There's already one at Bay/Dundas and I find their product selection is lacking compared to Target/Walmart. I also never really enjoy shopping at their stores.
nfitz
Superstar
I haven't heard anyone I know who went to Target complain about prices. All I heard was how they didn't have the product they wanted.
Consumers Distributing all over again ...
Tuscani01
Senior Member
The Bay/Dundas location is tiny, hence the lack of product selection. Harbour/York would be unlike any store in the GTA in terms of assortment due to the sheer size of the space.
gabe
Senior Member
Everyone i have talked to has complained about Target's high prices. That was one of Target's biggest complaints, along with empty shelves. Which improved over year, but prices didn't.
Corner Brook Target shoppers say store’s prices were too much http://www.thewesternstar.com/Busin...pers-say-store’s-prices-were-too-much/1
Shopper Maria Puopolo said the only shock she felt was around Target’s decision to pull out so soon after opening its first Canadian stores to much fanfare in March 2013.
She acknowledged that prices in Target’s Canadian stores turned out to be disappointingly higher than those in its stores south of the border, but said it was quality and selection that kept her coming back.
http://www.torontosun.com/2015/01/15/gta-shoppers-not-surprised-target-shuttering-canadian-stores
Sherri Winsor, who visited the Target by St. Clair Ave. W and Keele St., said she noticed the store has better quality, but higher prices than Wal-Mart.
http://www.thestar.com/business/201...osure-met-with-consternation-and-a-shrug.html
“The prices aren’t competitive compared to their U.S. stores. There’s no way they can compete in Canada,†said Steve McMahon as he left the Devonshire mall store with his family. “It’s unfortunate. http://blogs.windsorstar.com/news/news-of-target-closing-not-surprising
In a botched strategy by overly confident executives, Target grappled with shoppers who complained of too-high prices and bare shelves. http://www.theglobeandmail.com/repo...-killing-canadian-operations/article22458161/
Many consumers said Target's prices were higher than their U.S. counterparts, and they were not happy with the lack of products.
Read more: http://montreal.ctvnews.ca/target-canada-to-close-all-locations-1.2189987#ixzz3P18dn2oI
[I]Higher prices
Setting prices at noticeably higher levels on certain products and categories compared to what Canadians were accustomed to at U.S. locations was a grave misjudgment. Despite the fact consumers on this side of the border routinely pay more for goods here compared to what U.S. shoppers pay for the same thing, Canadians were repulsed by Target’s pricing.
Combined with supply chain woes, Target quickly exhausted all that goodwill generated with Canadians before it arrived. “When expectations aren’t met it’s very hard to get shoppers to come back,†Hirji said.
http://globalnews.ca/news/1774769/heres-why-target-failed-in-canada/[/I]
Skeezix
Senior Member
I kind of wonder about people who complained that the prices were higher than the U.S. What U.S. retailer in Canada price matches with its U.S. stores? Perhaps they were significantly higher? Perhaps the empty shelves and the product selection that paled in comparison to the U.S. stores prompted shoppers to make more comparisons with the U.S. than they otherwise would have? Maybe Target simply mismanaged perceptions, and led shoppers to believe they would be getting the exact same Target experience, prices and all, and better managers would have better handled expectations? I don't know.
Retail analysts will be studying this fiasco for some time to come.
Retail analysts will be studying this fiasco for some time to come.
Bruno Republic
Active Member
Walmart has higher prices and less selection in Canada vs the US, but that hasn't stopped them from being successful here. Walmart too had a rough (though not catastrophic) first couple of years in Canada, but they're doing fine now. Well, aside from their attempt to bring Sam's Club here, which they abandoned after failing to break Costco's hold on that market segment.
The biggest problem were the empty shelves. Nothing is as customer-repellent as empty shelves. When a customer goes to a store and is unable to get what they expected, that store effectively trains them to shop elsewhere, and undoes all their marketing and advertising in the process.
The second problem was the perception of price, or that it was ever their main focus. Target's main draw in the US isn't that it's the cheapest place to shop, but rather that they have better merchandise. It's hard to beat Walmart on price, but it's very easy to beat them on style. In addition to nicer private label products, Target has, or used to have, exclusive products which were both quite stylish and affordable, like designer clothing and household products. Unfortunately, their entry into Canada coincided with them backing away from this approach even in the US (which I would expect is what led to them having some troubles at home), and what little they did do didn't make it to Canada. Without product exclusives and bereft of merchandise, they simply had nothing to offer Canadians that competitors didn't do better.
The biggest problem were the empty shelves. Nothing is as customer-repellent as empty shelves. When a customer goes to a store and is unable to get what they expected, that store effectively trains them to shop elsewhere, and undoes all their marketing and advertising in the process.
The second problem was the perception of price, or that it was ever their main focus. Target's main draw in the US isn't that it's the cheapest place to shop, but rather that they have better merchandise. It's hard to beat Walmart on price, but it's very easy to beat them on style. In addition to nicer private label products, Target has, or used to have, exclusive products which were both quite stylish and affordable, like designer clothing and household products. Unfortunately, their entry into Canada coincided with them backing away from this approach even in the US (which I would expect is what led to them having some troubles at home), and what little they did do didn't make it to Canada. Without product exclusives and bereft of merchandise, they simply had nothing to offer Canadians that competitors didn't do better.
syn
Senior Member
Target seemed to think their brand recognition would allow them to do pretty much whatever they wanted in terms of pricing, etc.
The only reason people would cross the border was the pricing and selection.
The only reason people would cross the border was the pricing and selection.
gabe
Senior Member
J Crew lowered their prices after backlash from Canadian shoppers. Walmart Canada has lowered prices on over thousand products and price matched all DVD/CDs/books with their American store prices.
Now they got the monopoly, they are probably going to jack the prices up the day Target closes its doors. People complain about Zellers being run down. I have been in some Walmarts lately that make Zellers look like Saks.
Bruno Republic
Active Member
Well, that and the Canadian dollar having fallen by nearly 20% in the past year.