Nearest broker: Searching for a broker nearby…
Nearest broker: Tweed Phone: (613) 478-2532 Sunderland Phone: (705) 357-3916 Sudbury Phone: (705) 523-2030 Penetanguishene Phone: (705) 549-7437 Ottawa Phone: (613) 733-3312 Parry Sound Phone: (705) 746-2441 Orillia Phone: (705) 325-4234 Kemptville Phone: (613) 258-5991 Eganville Phone: (800) 884-1045 Petawawa Phone: (613) 687-4805 Belleville Phone: (800) 361-0941 Winchester Phone: (800) 487-3706 Wellington Phone: (613) 399-3620 Trenton Phone: (877) 455-0299 Prescott Phone: (877) 504-3569 Picton Phone: (888) 475-2776 Peterborough Phone: (800) 958 2270 Perth Phone: (877) 248-1222 Pembroke Phone: (877) 399-3299 Oshawa Phone: (800) 887-7309 North Bay Phone: (705) 475-0001 Napanee Phone: (613) 354-2152 Morrisburg Phone: (800) 806-0746 Midland Phone: (888) 737-6465 Madoc Phone: (613) 473-5266 Kingston Phone: (800) 590-5422 Gananoque Phone: (800) 932-2131 Embrun Phone: (866) 853-4740 Ajax Phone: (905) 427-4276 Cornwall Phone: (844) 463-3616 Cobourg Phone: (800) 895-5902 Carleton Place Phone: (888) 237-9517 Brockville Phone: (888) 345-8663 Brighton Phone: (613) 475-1430 Barry’s Bay Phone: (866) 845-2123 Barrie Phone: (705) 726-3350 Bancroft Phone: (800) 994-0036 Arnprior Phone: (800) 668-7337
Get a Quote
Open Menu
Red target with 3 arrows

Target Misses the Mark North of the Border

The run for Target stores in Canada lasted less than two years; the 133 stores actually struggled out of the gate. This leaves 17,600 people out of work and the American owned firm with a $5.4 billion loss. In mid January this year the American retailer put its Canadian assets under bankruptcy protection, ending a short and not-so-sweet attempt at success in the North. In fact, the retailer never really impressed Canadians.

traget-miss-300x150

It isn’t so much that Canadians don’t like Target; we just didn’t like the higher prices. The Central bank pointed to “widespread and persistent competition among retailers” as one factor for low inflation, which soon led analysts to dub this effect of fierce competition as the ‘Target effect’.

Also many products were not shipped north, leaving a noticeable number of empty shelves at Target retail outlets. We are all too familiar with the Target slogan “Expect More, Pay Less” – seems just the opposite was true. Many Canadians are no strangers to cross border shopping; we like the wider selection and why pay more for the same things here, when we can get them cheaper simply by heading south.

Target also failed to offer online shopping in Canada. This move put it at a disadvantage with its rivals. A fluctuating exchange rate between Canada and the US presented its own set of problems. All combined, Target waived the white flag and jumped ship.

target-300x150
After retreating from Canada, Brian Cornell, Target’s chief executive, announced better than ever prospects south of the border. While Canada’s economy struggles by the plummeting price of crude oil, the American economy is actually gaining strength due to exactly the same trend. That was reason enough for Target to pack its bags and head home.

 

No comments found.
Anonymous User

Leave a Reply

Your email address will not be published. Required fields are marked *

?>

You Might Want to Read

Meet the Dougallers: Brendan Hagerman
Meet the Dougallers welcomes Brendan Hagerman from our Napanee office! Brendan is new to the insurance world and we wanted to find out a little...
Welcome Tipper Financial Services to the Team!
We are proud to announce the successful acquisition of Tipper Financial Services Ltd. as they join the McDougall family! The acquisition is official as of...
Welcome Excalibur Insurance to the Team!
We are happy to share that Excalibur Insurance Group Inc. has merged with our McFarlan Rowlands branches in Southwestern Ontario! The merger is official as...
Request a Free Quote

It’s simple and won’t take long.

Get a Quote800-361-0941

Person standing, looking down at laptop