Target United States currently has 1081 stores across country and (??how many?) Employs approximately people. At 2012, they brought 189 Zeller stores from Hudson Bay Company. After one year, Target opened their first Canadian store in March 2013. Until January of 2015, they have 133 locations across the Canada. However, The Target Canada announced plans to stop Canadian operations and come back to the United States at the beginning of 2015.as far as I am concerned they're four main reasons cause the target Canada's exit, which are inappropriate locations, high price, Incomplete supply chain, unsuccessful training and competitions.
On the first place, the locations of Zeller store are not fit for the Target Canada. For example, many Zeller stores were located in rundown shopping mall. The space of the stores were smaller than US Target store. After acquisition, Target find out that it takes more money expected to expend store and convert to Target style. As the result, failure of selected location increase the financial burden for the company at beginning.
Secondly, the price of Target Canada store offer not only higher than US store but also higher than domestic store. According to Antony Karabus, the Toronto-based CEO of Hilco Retail Consulting advisory firm, said, Canadian customer are aware off US store’s price, because many of them shop in United States. Therefore, many Canadian customer were refused to buy the product if the price were unreasonable higher. As the consequences, Target Canada lost their “cheap chic” reputations. The consumer would rather go to the Walmart or Costco to buy cheap products.
In the meantime, the supply chain was not build up yet when stores start to opening. They have a big problem with the inventory. For example, one of the location, workers did not have enough goods to fill up the shelves on grand opening day. Until the second wave of store opening in 2013 the supply chain still not functioning normally. The...
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